Detroit to get $879.6 million from $1.9 trillion federal stimulus bill

**Satiricalivory** · March-10-21, 03:51 PM

Looks like the budget is the last issue the city has to worry about now.

https://twitter.com/crainsdetroit/st...49898634690562

**Ray1936** · March-10-21, 05:33 PM

Originally Posted by Satiricalivory

Looks like the budget is the last issue the city has to worry about now.

Naw, they'll find a way to piss it all away and work on raising taxes again.

**angry_fred** · March-10-21, 06:18 PM

Originally Posted by Ray1936

Naw, they'll find a way to piss it all away and work on raising taxes again.

If they're smart they'll wipe out the high interest debt, and start investing in infrastructure

**Jason** · March-12-21, 11:58 AM

Originally Posted by Ray1936

Naw, they'll find a way to piss it all away and work on raising taxes again.

The city has been running in the black for almost a decade and taxes haven't really changed in forever.

**401don** · March-10-21, 06:41 PM

The way gov'ts print and spend money these days I'm surprised it's not a lot more.

**softailrider** · March-16-21, 04:06 AM

Originally Posted by 401don

The way gov'ts print and spend money these days I'm surprised it's not a lot more.

I agree, it’s unbelievable. If the day of having to pay the piper for running the printing presses like this ever happens, it’s not going to be pretty.

**beachboy** · April-04-21, 09:55 AM

Originally Posted by softailrider

I agree, it’s unbelievable. If the day of having to pay the piper for running the printing presses like this ever happens, it’s not going to be pretty.

Please read carefully: https://usdebtclock.org/

In a seasonally-relevant comment, a famous man purportedly said, "... weep not for me, but for yourselves and for your children."

**DetroiterOnTheWestCoast** · April-04-21, 04:10 PM

Originally Posted by beachboy

Please read carefully: https://usdebtclock.org/

In a seasonally-relevant comment, a famous man purportedly said, "... weep not for me, but for yourselves and for your children."

That debt clock exploded from 2016 through 2020 with nothing positive to show for it.

**401don** · April-04-21, 05:56 PM

Originally Posted by beachboy

Please read carefully: https://usdebtclock.org/

In a seasonally-relevant comment, a famous man purportedly said, "... weep not for me, but for yourselves and for your children."

I don't get it either. It goes against everything I thought I understood about economics but I've listened to economists on tv, read some articles, etc. and almost all say as long as the gov't can service the debt it doesn't matter how high it is. Doesn't inflation and rising interest rates down the line matter? Don't the interest payments continue to eat up a greater portion of expenditures? The theory goes the gov't can always print more money and roll the debt over so indeed it doesn't matter.

**CR75** · April-05-21, 06:03 AM

Originally Posted by 401don

Doesn't inflation and rising interest rates down the line matter?

High levels of deficit and consequent debt will indeed force us to have near-zero interest rates for the foreseeable future, with all the possible depressing consequences that come with it: asset inflation, economic stagnation, nowhere safe to park your savings, market volatility, no social mobility, etc. Cases in point: Japan 1990-present and Europe 2011-present. We risk being stuck forever in that black hole of stagnation. I am sure, as you point out, that all the Paul Krugmans on cnn/nyt will disagree and that they will keep cheerleading these disastrous policies with their wishful thinking economics, just like they cried foul on the debt in 2017 when Congress passed the tax cut.

**ABetterDetroit** · March-10-21, 10:01 PM

Good. Detroit is going to need it badly. We have seen massive deficits here at the city and state level in the past and it was well proven that there isn’t enough wealth around here anymore to recover in a timely fashion in comparison to many other states. At least now we have a fighting chance to keep up for a change instead of just falling farther behind.

https://www.detroitnews.com/story/ne...es/4236254001/

**Satiricalivory** · March-10-21, 11:24 PM

Actually the deficit for 2020 is only a fraction of what we're getting with this stimulus. The budget shortfall was only 200 million. Detroit was actually in a much better position to deal with this financially because we have a rainy day fund.

The city will now have a lot of resources to actually help people and improve neighborhoods instead of just filling budget holes.

**ABetterDetroit** · March-11-21, 12:40 AM

Originally Posted by Satiricalivory

Actually the deficit for 2020 is only a fraction of what we're getting with this stimulus. The budget shortfall was only 200 million. Detroit was actually in a much better position to deal with this financially because we have a rainy day fund.

The city will now have a lot of resources to actually help people and improve neighborhoods instead of just filling budget holes.

I agree. That’s exactly what will be happing around the country which is my point. We need the money and it is a dog eat dog nation right now. It is federal cash and you take every penny you get and fight for more. Far better here than shipped elsewhere. That kind of money changes a lot of peoples lives. Detroit deserves it and more. This city has been systematically destroyed by powerful forces on many fronts for 6 decades. Time to get some of what is due. Restocking rainy day is probably prudent. The last bond was at a reasonable rate. No problems there.

**CR75** · March-11-21, 08:03 AM

Originally Posted by Satiricalivory

The budget shortfall was only 200 million.

Given that in the previous years we had a surplus of 100+ million, that meas a 300+M swing from projections. We still have the huge 2 Billion burden of unfunded retirement benefits, and if I recall correctly we will have to make bigger payments towards that starting in 2024.

Suddenly 900M doesn't seem that much anymore...

**oladub** · March-11-21, 09:05 AM

Detroit's Covid Relief money amounts to about $1,300 per Detroit resident. It's a one time gift. It should be spent on reducing ongoing obligations and Covid related damages. The temptation will be to spend it on new programs that will require unavailable and ongoing maintenance costs. Perhaps some of the Covid Relief money could be leveraged for matching federal or private funds that would best suit Detroit and its partners' interests.

**Lowell** · March-11-21, 09:52 AM

Originally Posted by oladub

Detroit's Covid Relief money amounts to about $1,300 per Detroit resident.

Add to that there will be stimulus checks of $1400 per person plus a one time child care credit of $2400. In terms of a four person family that's $8000. That will create a significant boost, not only in Detroit, but the burbs and nationwide, to struggling people and local businesses.

**Satiricalivory** · March-11-21, 12:05 PM

God, can some of you just not be negative Nancys for one damn moment?

**Wesley Mouch** · March-11-21, 06:48 PM

Originally Posted by Satiricalivory

God, can some of you just not be negative Nancys for one damn moment?

We all love our fine City. And its residents have been hit hard by the pandemic. Yet experience has shown that most 'bail out' funds don't get where they need to. Right now its lower-level income earners such as restaurant workers or small businesses [[and I don't mean 50 employee small, I mean real small, like <10) that need the help -- and funding the pensions of city employees who were mostly paid during the pandemic I assume won't help the truly needy. So excuse the cynicism. Its just that we would like to see help better used -- and it usually isn't.

Does anyone have recommendations for how this money can get deployed where its needed, other than plugging past budget holes?

**jcole** · March-12-21, 12:29 PM

Originally Posted by Satiricalivory

God, can some of you just not be negative Nancys for one damn moment?

**One Shot** · March-11-21, 11:50 AM

The shell companies are setting up now to get a piece of that. Unfortunately the odds of it doing any good are slim.

**bust** · March-11-21, 05:12 PM

Truly happy about this. Every other "economic rescue" bill I can remember disproportionately helped the segments of our society / economy who needed it least.

Yeah, eff the vampiric barnacles and their shell companies, they hella suck. The intention is to fuel the engines of our economy, Detroit and Detroiters high among them.

May Detroit elected [[and un-elected commercial leadership) direct it well, for a change.
May they be transparent where the money goes and the returns on the investments.

**Dan Wesson** · March-11-21, 08:24 PM

Buy Bitcoin and hold. Diamond hands baby, to the moon...

**hybridy** · March-12-21, 10:47 AM

Originally Posted by Dan Wesson

Buy Bitcoin and hold. Diamond hands baby, to the moon...

nah bro dogecoin or gtfo

**David L** · March-14-21, 03:21 PM

I would like to see, say 100 million for tearing down big industrial eye sores like the Fisher body plant and the failed renovation pipe dream, Packard plant. There are so many industrial facilities that are not viable any longer. The land could be redeveloped for new industrial uses using brownfield credits, creating more jobs for Detroiters where they live.

**Seven&wyo** · March-14-21, 03:41 PM

Originally Posted by David L

I would like to see, say 100 million for tearing down big industrial eye sores like the Fisher body plant and the failed renovation pipe dream, Packard plant. There are so many industrial facilities that are not viable any longer. The land could be redeveloped for new industrial uses using brownfield credits, creating more jobs for Detroiters where they live.

Better idea stop treating shit down that doesn’tneed to be taken down and make them viable again. I would argue the amount of money to tear down the fisher body plant could be used to make it worthy to at least sell. Enough of our history has been torn down.