No, we have not hit bottom.
The City of Detroit is working on reducing expenses and eliminating deficits, but the massive cuts in city employment needed to do this have not happened yet.
The State of Michigan balanced their budget using stimulus money, and did not address the huge deficit they are running. The state must also cut services and employees in a big way, as we can no longer afford the services it provides.
In addition, the state is funding the City of Detroit in a way that other cities and regions feel are unfair, so it is likely that the next governor will cut revenue sharing and other state funding to the City of Detroit.
The problem of declining property tax base will continue, fueled by inadequate services [[police protection, mainly), and crime, both real and perceived. This will decrease the property tax base, further eroding the city's ability to fund services through property taxes.
The root problems of poor services and high taxes in the COD will not be able to be addressed in the current budget. The COD will be reacting to State of Michigan cuts to funding in the next budget, so it is unlikely that any reorganization can take place to improve services. The COD will be in consolidation mode for at least 2 years, probably much more as property values decline.
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