Detroit Financial Crisis is Over – What you need to know

Good News for Detroit

Will Detroit return to its heyday and became a city people want to move to again?

Why did Emergency Manger Kevyn Orr resign?

At some point today, Governor Rick Snyder will stand before Detroit, before Michigan, and before the nation to terminate Emergency Manager Kevyn Orr’s appointment and announce that the financial crisis in Detroit is over.

Historical Detroit

The other day, I stood in Biggby Coffee looking over some greeting cards in a display rack. The cards had different pictures of historical Detroit. A picture of Briggs Stadium, the home of the Detroit Tigers from 1938-1960, caught my eye.

Detroit hadn’t always been in financial crisis. It hasn’t always been the most dangerous city in America. With the governor announcing Detroit’s financial crisis being over, there is even more hope and promise for Detroit, Michigan.

Detroit’s Financial Crisis Comes to an End

The Detroit News reported that when Kevin Orr came to Detroit, there was a $300 million plus deficit. Now as he exits his position, Detroit is projected to have about a $100 million dollar surplus.

Detroit Mayor Mike Duggan reminds us that the surplus is a “one-time accounting issue related to bankruptcy and there won’t be more coming in just yet.”

However, I think we can all agree that having a surplus is much better than having a deficit.

As Kevin Orr leaves, the control of the city government will be given back to Detroit’s elected officials. Even still, Detroit will remain under state oversight for a decade.

Detroit Remains Under State Oversight

Instead of losing the Detroit Institute of Arts and harsh cuts to the city pensions, a state-appointed Financial Review Commission will act as what the Detroit Free Press called a watchdog over the city. The board has the power to reject contracts, spending, borrowing, and even labor agreements.

As long as the city of Detroit stays within budget and meets all the terms of the bankruptcy, the board may go dormant.

What Caused Orr to Resign?

My Fox Detroit reported a few reasons why Kevyn Orr turned in his letter of resignation,

  • Under Orr’s control, Fox Detroit reports that the city eliminated $7 billion dollar’s worth of debt. If all goes to plan, the city should have a reinvestment of $1.7 billion to city services in the next decade.
  • Crime is significantly down in Detroit. You may like to read more about the lower crime rates in Detroit in an article we published last month called, Detroit Crime Statistics Lower and Chief Works to End Corruption.
  • Street lights are coming back on.
  • Detroit is becoming a city that people want to live in again.

Detroit Still has Work to Do

Detroit Mayor Mike Duggan admits he still has work to do. Here is what he told Fox Detroit,

“It’s the same challenge I had the month before.
We have to get the street lights on, got to get the abandoned buildings down, get the police to show up on a timely basis.I think we are making progress.”

What Do You Think?

Is it too early for Kevyn Orr to resign? Will Detroit become a place people want to move to? Is Detroit making progress? Please let me know your thoughts in the comment section below.