Yes, no problem here. Nothing to see, just go about your business as usual – move along.

Meanwhile, from the Financial Review Team http://www.freep.com/assets/freep/pdf/C4201112219.PDF

Annual [[Short-Term) Deficits
Detroit has an inadequate budget process that produced the following “Annual Deficits” [[Year, then Actual Deficit in Millions): 2005 [[$115.4), 2006 [[$173.7), 2007 [[$115.6), 2008 [[$219.2), 2009 [[$331.9), 2010 [[$155.7), 2011 [[$196.6), 2012 [[$326.6). Or, over the 8 year time period an average Annual Deficit of $214.3 Million, per year.

Long-Term Debts
As of June 30, 2012 Long-Term debt is $14.99 Billion. Ok, Ok, some of that is really, really long-term debt or Water & Sewer debt and that will magically disappear with pixie-dust made powdered unicorn horn. But, the fact remains that $2.0 Billion of that debt is near-term and comes due within 5 [[short) years.

What to do.

  1. Stop anymore long-term borrowing. Besides, who would buy Detroit bonds that are now junk rated or unrateable? Don’t count on any additional State guarantees.
  2. Cut the Annual Deficit to ZERO
  3. Also create an operating surplus of $400 million a year for 5 years in order pay off that near-term bond debt of $2.0 billion.


Right, no E[[F)M or Bankruptcy Judge needed here. The City Council, Mayor and a few community activists can handle all this. [[Sarcasm off).