From America's capital of industry to its capital of decay, Detroit's post-industrial run hit another pile of bricks today when Michigan Gov. Rick Snyder announced he'll be naming an emergency manager to oversee the troubled city, putting the city government under state control. Snyder's pick will have the power to sell city assets and cancel contracts to try to address Detroit's more than $14 billion in long-term debt and avoid bankruptcy.
The move, which the City Council can appeal, punctuates decades of decline in the home town of General Motors Co. (GM) Snyder’s decision may inflame opponents, as the administration of a white Republican seizes control of a community that is predominantly Democratic and more than 80 percent black.
“It’s a sad day, a day I wish never happened, but it’s a day of promise,” said Snyder, who is in his first term. ...
Opponents say state takeovers disenfranchise voters by stripping elected officials of their power over municipalities or school districts, and may protect bondholders at the expense of employees, services and taxpayers.
Just two weeks ago, Detroit's Democratic mayor, Dave Bing, said in his State of the City address: “The picture is not all doom and gloom. Every day there is more hope and possibilities. Like many Detroiters, I, too, am a fighter. We can’t, and won’t, give up on our city.”
Today he struck an upbeat note in a statement responding to the governor's announcement:
“If, in fact, the appointment of an emergency financial manager both stabilizes the city fiscally and supports our restructuring initiatives which improve the quality of life for our citizens, then I think there is a way for us to work together. We have always said that we need help from Lansing to implement our initiatives such as public safety, transportation, lighting and others.”
Detroit's population has tanked in recent years. Just between 2009 and 2011, the city lost more than 200,000 people. Once a city of 1.8 million, it is now home to about 700,000. But those are 700,000 people who aren't likely to agree with white Republican state politics, and Snyder hasn't said yet who his emergency head will be, just that he has someone "in mind."