The emergency financial manager for Detroit has issued a report that says the city's finances are in worse shape than nearly anyone suspected before Michigan Gov. Rick Snyder (R) appointed him to the job in March.
Snyder appointed corporate turnaround expert Kevyn Orr to be Detroit's emergency financial manager. He is a lawyer in the Jones Day law firm in Washington, D.C. Among other assignments, he represented Detroit automaker Chrysler during the company's bankruptcy and government rescue in 2009.
“No one should underestimate the severity of the financial crisis,” Orr said in a statement. “The path Detroit has followed for more than 40 years is unsustainable and only a complete restructuring of the city’s finances and operations will allow Detroit to regain its footing and return to a path of prosperity.”
As in many states and local governments, retirement costs have become a huge drain on finances. But the problems in Detroit are especially severe. Orr's recently released report...
A few years ago, I was talking to a new college graduate who was moving to an expensive, distant city where she didn’t have a job.
I asked, “How will you support yourself?”
She shrugged and said her parents had money and would support her whether or not she found work.
I couldn’t help but think, “Her parents aren’t doing her any favors.”
Sure enough, during the past several years she has failed to hold steady long-term employment.
These types of blank-check relationships often are filled with...
If taxpayers and ratepayers want to avoid unaffordable utility bills and huge liabilities in the not-too-distant future, they must insist now on more competition, oversight, and innovation in the way public officials manage the nation’s water and sewer systems.
That’s the conclusion of a comprehensive study by the 362,000-member National Taxpayers Union (NTU). The analysis projects hundreds of billions of dollars in future government expenditures could be saved by adopting techniques such as...