Quote Originally Posted by gnome View Post
There are two different "receiverships".

1, the Governor steps in, with a Financial Manager who inturn has the power under almost Imperial Powers to slash the budget. Before Bankrupcy the Financial Manager would enter into arbitration with the labor Unions and could renegotiate contracts with suppliers. If the EFM can't balance the books, that Manager could declare bankrupcy which would wipe out all debts and contracts and send the whole mess to Court.

In this scenerio the political power structure is pushed to the corner and becomes a toothless cur.

2, The other system would avoid the Governor altogether. The City would declare Chapter 9 Bankrupcy, resulting in the current political strong-mayor structure to operate as its own Financial Manager.

Taking into the account that Governor Granholm would rather eat glass than take over Detroit and all of its Democratic voters, I'll vote for Chapter 9. On Monday September 14, 2009 Bing will file the paperwork in Federal District Court.

However, on the afternoon of the 14th, the Unions will agree to concessions thereby avoiding the delaying Chapter 9 Bankrupcy until April 10th, 2010.
State law does not allow a municipality to file bankruptcy without the state's consent. PA 72 of 1990 was passed after Ecorse's bankruptcy filing to mandate a review by the state.The bankruptcy court would appoint the receiver, and it's not guaranteed that anyone currently in the city government would get the court's nod.