Tuesday, June 29, 2010

Fiscal Stability in Bankruptcy

The deal late yesterday to keep Rouge Park and 76 other parks in Detroit has prompted a decent amount of discussion on Facebook and elsewhere about how to best maintain financially.  I posted the comment below, which received positive reactions.  I am, therefore, repeating it here.

This is counterintuitive, but the road to fiscal stability for Detroit leads straight to the U.S. Bankruptcy Court. Almost 70% of our tax dollars go straight to debt service, in one form or another. This includes Detroit Public School debt, City of Detroit general debt, the revenue anticipation bonds, and Wayne County debt.

We need a massive reorganization of those debts, on a scale that can only be done under the supervision of bankruptcy judge.

As always, I welcome your thoughts in the comments section below.
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