Wednesday, April 13, 2011

Bing Warns of Dire Consequences. Again.

Mayor Dave Bing warned yesterday in his budget address that the City of Detroit's budget deficit could grow to $1.2 billion by 2015 unless drastic cuts are taken. I find this interesting because it was only last year that Mr. Bing argued that last year's drastic cuts were needed in oder to prevent Detroit from going into receivership and/or bankruptcy.

One presumes, of course, that there will likely be another round of cuts next year.

And the year after that.

And the year after that.

I have said it before and I will say it again. Every time a certain service is cut, it gives people less of a reason to stay in Detroit. Every time someone decides to leave Detroit, we have less tax revenue to work with for the following year, which prompts more people to leave, more cuts to be made, and more people to leave.

This is a viscous cycle with no signs of its abating simply by making a few more cuts. It is simply time for the City of Detroit and the Detroit Public Schools to go into bankruptcy and get it over with. We can either go into bankruptcy now and be done with it or we can be dragged into bankruptcy in a few years by our creditors on an involuntary basis.

Bankruptcy isn't fun. Involuntary bankruptcy is worse. Involuntary bankruptcy that drags many of our neighbors down with us, which is a growing possibility, is even worse still.
Post a Comment