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<p style="font-size:xx-small;"> on contracts and benefits, which have contributed to nearly
$15 billion in unfunded liabilities for the city.State-appointed Emergency
Manager Kevyn Orr on Thursday filed the bankruptcy, making Detroit the largest
U.S. city to declare one, after failing to negotiate a restructuring of
union contracts to lessen the citys financial burden.Orr, appointed in March
by Gov. Rick Synder, appeared to have little choice, considering Detroit
had a general fund in the red for roughly the past nine
years and a fiscal 2012 deficit of $327 million.In addition, Detroit has
a roughly 18 percent unemployment rate, one of the countrys highest violent-crime
rates and about 80,000 blighted or abandon buildings.Chronic budget problems
have taken a significant toll on everyday life for citizens, Snyder said
recently. Detroiters deserve to feel safe when they walk down the street,
to have their street lights on, to have the bus show up
to take them to work. However, the city also has a history
of corruption that has led to its financial problems, including Mayor Kwame
Kilpatrick resigning in a 2008 sex-and-perjury scandal that cost the city
almost $9 million from a lawsuit and legal fees.The Associated Press contributed
to this report.
on contracts and benefits, which have contributed to nearly
$15 billion in unfunded liabilities for the city.State-appointed Emergency
Manager Kevyn Orr on Thursday filed the bankruptcy, making Detroit the largest
U.S. city to declare one, after failing to negotiate a restructuring of
union contracts to lessen the citys financial burden.Orr, appointed in March
by Gov. Rick Synder, appeared to have little choice, considering Detroit
had a general fund in the red for roughly the past nine
years and a fiscal 2012 deficit of $327 million.In addition, Detroit has
a roughly 18 percent unemployment rate, one of the countrys highest violent-crime
rates and about 80,000 blighted or abandon buildings.Chronic budget problems
have taken a significant toll on everyday life for citizens, Snyder said
recently. Detroiters deserve to feel safe when they walk down the street,
to have their street lights on, to have the bus show up
to take them to work. However, the city also has a history
of corruption that has led to its financial problems, including Mayor Kwame
Kilpatrick resigning in a 2008 sex-and-perjury scandal that cost the city
almost $9 million from a lawsuit and legal fees.The Associated Press contributed
to this report.
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