Michigan Governor Richard Snyder approves bankruptcy request by the Emergency Manager of Detroit.
This is grim stuff. Detroit cannot legally raises taxes higher and those remaining there can not afford additional taxes. Police cars, fire trucks, and ambulances break down frequently. Police response is a lethargic 58 minutes. There are 78,000 abandoned buildings in the city. Pensions agreements will probably be broken because the city has no possible way of meeting obligations.
The citizens of Detroit need and deserve a clear road out of the cycle of ever-decreasing services. The City’s creditors, as well as its many dedicated public servants, deserve to know what promises the City can and will keep. The only way to do those things is to radically restructure the City and allow it to reinvent itself without the burden of impossible obligations. Despite Mr. Orr’s best efforts, he has been unable to reach a restructuring plan with the City’s creditors. I therefore agree that the only feasible path to a stable and solid Detroit is to file for bankruptcy protection.