|City Manager Kevyn Orr & Governor Rick Snyder|
Note: as Detroit’s population declined from about 2 million during the 1950 to about 700,000 today, its revenue base significantly declined. As a result, many city services are impaired with about 70% of its ambulances out of service and 60% of its streetlights not working.
Detroit problems are likely worse than many other cities because of a decline in manufacturing, many businesses and residents moving to the suburbs, poor management and some corruption. However, with other U.S. communities confronting significant budget issues, there will be significant attention on how Detroit’s bankruptcy process affects employee pension and health care funds as well as its bondholders.