January 11, 2013 – There’s no shortage of evidence that the City of Detroit remains on a path to bankruptcy. If the city’s financial picture gets any bleaker, we’ll have to start inventing new words to describe it. Detroit’s most recent annual audit found that its budget shortfall more than doubled, from the $59-million structural deficit of the previous fiscal year to $121 million in fiscal 2012. This during a year in which the city operated under a reform-oriented consent agreement with the state, which made cutting costs and controlling the deficit job one. To eliminate its deficit without touching public safety, the city would have to cut general fund expenditures by about 30% over the next five years.
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