Detroit, Michigan is officially the biggest city in U.S. history to file for bankruptcy.
Many fear massive layoffs, higher fees, and the scaling back of a variety of services.
Detroit lost a quarter-million residents between 2000 and 2010. A population that in the 1950s reached 1.8 million now struggles to stay above 700,000. Much of the middle-class and scores of businesses also have fled Detroit, taking their tax dollars with them.
In recent months, the city has relied on state-backed bond money to meet payroll for its 10,000 employees.
Orr was unable to convince a host of creditors, unions and pension boards to take pennies on the dollar to help facilitate the city’s massive financial restructuring. If the bankruptcy filing is approved, city assets could be liquidated to satisfy demands for payment.
We wish everyone in Detroit the best as the city continues to sort out its financial troubles.