Thursday, January 08, 2015

So Grand

Detroit Free Press:  Detroit faces the same challenges after bankruptcy.  I thought the Grand Bargain grandly took care of all of that?

In a series of tweets, Kristi Culpepper explains the problem:

"Simple explanation of why Detroit will be back in bankruptcy in the short-term:  Their bankruptcy plan assumes that the city will pick up $841 million from new revenue and cost savings. City's revenues now are at $972 million.  And somehow they actually had experts testify that those assumptions were reasonable."

(To which Matt Fabian adds:  "[Freep] article fails to mention how there is less room for error now,  Detroit having sold the art.")