Proposal 1 Fails. What Now?

[313WX]

Common sense finally prevails in the state of Michigan.

Bankruptcy is the right recourse.

Detroit [[and even Michigan) will be better off for it.

EDIT: I also can't wait to see the lawsuits that will start flying.

[michimoby]

Common sense finally prevails in the state of Michigan.

Bankruptcy is the right recourse.

Detroit [[and even Michigan) will be better off for it.

EDIT: I also can't wait to see the lawsuits that will start flying.

Bankruptcy is a scary, scary weapon in this fight. But in some respects, it is the right recourse that calls the question: what once could only be enforced by a single appointed EFM [[such as union pension cuts) now has the federal, legal standing to back it up....

...which means that either the unions will negotiate, or riot. That sounds only slightly scary. :\

[313WX]

Bankruptcy is a scary, scary weapon in this fight. But in some respects, it is the right recourse that calls the question: what once could only be enforced by a single appointed EFM [[such as union pension cuts) now has the federal, legal standing to back it up....

...which means that either the unions will negotiate, or riot. That sounds only slightly scary. :\

And not just that, even a Bankruptcy Judge doesn't have the sweeping powers that an EM had.

I also don't buy all of the fear mongering over a bankruptcy proceeding either, based on past cases in places such as Jefferson County, AL and Orange County, CA.

[Eber Brock Ward]

I also don't buy all of the fear mongering over a bankruptcy proceeding either, based on past cases in places such as Jefferson County, AL and Orange County, CA.

Bingo. I don't buy a "degradation of services" argument, either, since most services are at a bare minimum, anyway.

Under BK, most services you and I see will remain more or less unchanged, but the BK judge could get the fiscal house in order.

[michimoby]

Bingo. I don't buy a "degradation of services" argument, either, since most services are at a bare minimum, anyway.

Under BK, most services you and I see will remain more or less unchanged, but the BK judge could get the fiscal house in order.

What of the major deficient service in the city today: the lack of access to quality education? The approach to DPS' restructuring completely changes from here on out.

[Wesley Mouch]

What of the major deficient service in the city today: the lack of access to quality education? The approach to DPS' restructuring completely changes from here on out.

The burden certainly moves back to the school board and the Unions.

Before all the EFM/EM wars, the movement to reform was painfully slow. We'll see if they can wait out this financial storm and stop the move to school choice, then nothing will happen.

Does anyone see the school board or Unions bringing reform to help our students? If so, why?

[313WX]

Bingo. I don't buy a "degradation of services" argument, either, since most services are at a bare minimum, anyway.

Under BK, most services you and I see will remain more or less unchanged, but the BK judge could get the fiscal house in order.

Exactly, and that's because the BK Judge can declare a moratorium on all debt payments [[half of Detroit's budget goes to debt obligations) until the banks realize they're only getting 5% to 20% of what they're owed.

There would still be budget cuts, no doubt. Of course, they wouldn't be NEARLY as severe either. The grant-funded DDHWP been dissolved either [[which the dissolving of that department went against the city charter).

Also, the unions would still be able to negotiate a new contract.

As far as the bond ratings for the state of Michigan or the surrounding communities, the interest rates on your debt payments may go up a little bit. Big deal. Detroit has been allowed to falter for 40 years, partly because it was deprived of capital from your fleeing to the suburbs and your encouragement of urban sprawl. [[something the vast majority of city centers in other states haven't had to contend with nearly to the extent Detroit has).