Detroit

The Daily Show last night had a great segment highlighting Detroit's ongoing water crisis. They point out that out of the $145 million dollars in delinquent water bills, nearly half is owed by commercial and municipal accounts, including the Joe Louis Arena, a local golf course, and an ice skating...
11/18/2014
Blog
Once again, Detroit’s tragic circumstances provide a window on the state houses and governors that were captured by right wing ideologues in the 2010 elections and are now at odds with urban (read “racial minority controlled”) governments. The state-appointed Detroit Emergency Manager has commenced...
07/16/2014
Blog
It is indeed remarkable that the Detroit’s Emergency Manager Kevyn Orr has agreed that existing pensioners can receive virtually all of their retirement benefits in a startling settlement proposal. Police and fire will receive their entire amounts (minus a portion of cost of living adjustment)...
04/16/2014
Blog
The unprecedented bankruptcy proceedings for Detroit lay bare the witch’s brew of fiscal devastation caused by the Great Recession and poor policy decisions that plague state and local governments throughout the land. The proceedings also cast a spotlight on the financial shenanigans that have been...
03/10/2014
Blog
The Detroit Emergency Manager, Kevyn Orr, has announced the third iteration of a settlement of a massive derivatives deal gone wrong, a key element of the largest municipal bankruptcy in history. On the surface, it appears to be a significant improvement over the prior versions. But appearances can...
03/04/2014
Blog
Detroit's Emergency Manager, Kevyn Orr, has filed a “plan of adjustment” with the court in the largest municipal bankruptcy in history. It includes some troubling news, some hopeful news and leaves out important items that should be known before a final plan for moving forward is settled. It is...
02/21/2014
Blog
Just three days before Kevyn Orr, the Emergency Manger appointed by Michigan Governor Snyder to run the fiscally strapped City, filed the largest municipal bankruptcy case in history, he signed a Forbearance Agreement with UBS and Bank of America/Merrill Lynch establishing a process to settle...
01/17/2014
Blog
NEW YORK—Today, U.S. Bankruptcy Judge Steven Rhodes rejected a proposal by Detroit’s Emergency Manager Kevyn Orr to pay off a complex financial deal that was originated in 2005 and turned catastrophic for the city during the recession.    The City’s proposal to pay off UBS and Bank of...
01/16/2014
Press Release
Today, bankruptcy judge Steven Rhodes ruled that the criteria for the bankruptcy proceeding for the City of Detroit have been met and the legal proceedings will go forward immediately. While at the same time disappointing and expected, there are some important elements in the ruling that could...
12/03/2013
Blog
The City of Detroit’s bankruptcy was driven by a severe decline in revenues (and, importantly, not an increase in obligations to fund pensions). Depopulation and long-term unemployment caused Detroit’s property and income tax revenues to plummet. The state of Michigan exacerbated the problems by...
11/20/2013
Publication
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