Records: Despite state intervention and bankruptcy threats, city of Detroit continues to spend at unprecedented clip

In the year that Detroit learned it was careening toward bankruptcy and the state was threatening to take over finances, the city continued to burn through cash at an unprecedented clip, according to financial records obtained by Motor City Muckraker.

Each day, the city spent about $350,000 more than it had in revenue, raising the accumulated deficit to more than $375 million.

It’s troubling news for a city that has already laid off thousands of employees, cut numerous services and reduced fire and police protection. Detroit also is trying to avoid the state appointment of an emergency manager, who could sell off city assets and make debilitating cuts.

It also raises questions about why Gov. Rick Snyder has taken so long to appoint an emergency manager since he didn’t hesitate to do the same in Benton Harbor, Ecorse, Flint, Pontiac and Allen Park, and in the Detroit, Highland Park and Muskegon Heights school districts.

 

Steve Neavling

Steve Neavling lives and works in Detroit as an investigative journalist. His stories have uncovered corruption, led to arrests and reforms and prompted FBI investigations.