Michigan's Court of Appeals has cleared the way for a team appointed by the governor to come up with a consent deal to keep afloat Detroit, America's historic "Motor City," which could run out of money in months.
The pressure on Detroit is intense. Monday is the deadline for Governor Rick Snyder's team to recommend what to do to fix the dire financial situation for Michigan's largest city, long synonymous with the U.S.-based auto industry.
Detroit and the state of Michigan have been negotiating to try to stave off the appointment of an emergency manager for the nearly bankrupt city....The city has faced hard times for decades. Detroit was home to nearly 1.9 million people in the 1950s, but now has a population of about 714,000, shrinking its revenue base. With the U.S. auto industry's contraction, the city lost 25 percent of its population between 2000 and 2010......Detroit's long-term liabilities are estimated to top $12 billion, while the city's annual budget is put at about $3.1 billion.....
http://news.yahoo.com/court-clears-way- ... 21743.html
