Report Shows State's Concern Over Detroit Finances
A state report paints a gloomy financial picture of Detroit as the city struggles to cut into a budget deficit while taking on more long-term debt. The nonpartisan Senate Fiscal Agency issued the report Tuesday. It looks at how Detroit’s dire financial situation might impact the rest of the state.
The city already has $1.4 billion in outstanding municipal bonds, and the report says payments will continue to be a long-term drain on city coffers.
It says that Detroit’s problems could impact the cost of borrowing and access to credit by Michigan’s government. The report is based on past audits, the city’s deficit elimination plan, current budget and other sources.
The Associated Press left a message seeking comment from Mayor Dave Bing’s office.
(Copyright 2010 by The Associated Press. All Rights Reserved.)