You're hitting on a pretty big issue. Folks in Detroit pay more in taxes, by a lot, but they don't really seem to get more. Instead of getting economies of scale, they seem to get the opposite, as waste and fraud seem to find an easier way to hide in a larger city.
I've thrown around in my head the idea of carving Detroit up into multiple cities and school districts. Focusing more on locally governing than at the scale of 140 square miles. I think the magic number would be to go from one city to four or five cities and school districts. School district boundaries should match the new city boundaries. I don't think any such solution like that should be imposed on Detroit residents, but only implemented if chosen by them.
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