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You well -- a lot of cities around the country are struggling with their own budget says it is not just a federal government issue but it's -- an issue for many city governments not more so perhaps than Detroit.
Which is a in a state of real financial emergency -- -- dot com's Joseph Webb -- Joining us now with a mall on the state of Detroit do child.
How -- thanks for having me they are indeed in a -- state of emergency.
Michigan governor Rick Snyder has declared declared on March 1 a -- emergency this comes after an independent review board.
Concluding that god they were -- -- fixable situation so he is poised to hire a financial manager.
Who come in.
Somewhere -- march 11 the -- this this city appeals that he decides against it.
But nevertheless Michigan's problems are well known myriad and may -- going on for decades.
Part of it guys declined to be on.
The auto industry and manufacturing industry in general people left.
Half the population has gone since -- -- in 1950s.
In nineteen in 20112 years ago -- infamous they have -- the people didn't pay their city tax bills property tax to the city so some real financial problems.
It had agreements before that haven't worked and he's looking to tried to make some things happen here.
One of the biggest problems the biggest of all these I'd mention is that they have about fifteen million dollars excuse me fifteen billion dollars.
A liabilities that's in health care.
And that needs to be fixed in some ways and one of those things -- the city manager this emergency measure likely will deal.
-- try to renegotiate these contracts.
And got that stepping gonna cause some problems with some unions to -- declared that this is a dictator law so -- mechanics.
Expect confrontation there so my sources have told me.
That -- whoever it is that he appoints is not gonna really come and start trying to cut these but found these contracts and and renegotiate them.
But -- looking for other methods but when you have fifteen billion dollars and the city's so struggling take it out from under that there's really not a whole lot he he or she can deal.
Except to try to renegotiate these contracts.
And get some of that extra money to pay for stuff such as more police officers getting the -- is running again we make this streets safer.
Yep except quite the -- -- -- -- -- -- Joseph Weber -- DC bureau thanks very much indeed Joseph good to see it.
I think having me all right Brian debt that this week we have I mean it's not just Detroit -- -- cities of many cities -- country.
Who -- in quite domestically might be the -- of them in many ways but.
It's a big problem that's could become a lot worse.
No it is no doubt about it and I think there's no real answer to this besides I think what Michigan is trying to do I just think that.
I'm an emergency manager.
Should be there should be some way that that -- managers working with the local citizenry.
In a way where people locally can feel like they are expressions of voting.
Matter and I think -- we don't wanna have is this person who's not from the community doesn't look back and won the community.
Just making these decisions and then the local folks Filipino have a -- -- and -- they've got to forgot a way to structure that.
And I think that person's -- to -- tough decisions because of this this have to happen and -- -- is this just decades of mismanagement.
I -- this is decades of of fiscal malpractice on the part of the people who have been.
Elected by the folks in Detroit and there's a very entrenched democratic.
Political class and listen this isn't about race as people have tried to make it out to me.
And it's not about it's not about politics what.
Governor with the governor is trying to do is actually.
Keep this out of the federal courts right 'cause there are folks in Detroit who have advocated declaring bankruptcy -- he said this is a local solution this keeps it in the state.
This keeps -- this keeps it as local as we can get get it.
While making good putting somebody there who can help make the tough choices right because they've got a 325 million dollar budget deficit alone.
Plus this fourteen billion dollars in unfunded liability it's a mess that's for sure all right.
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