History was made late Thursday afternoon when the nation’s 18th largest city filed for bankruptcy protection.
Detroit’s filing marks years of decline for a once iconic city that houses America’s automotive industry. Financial mismanagement, population loss and a shrunken tax base are all being blamed for the city’s dire state. Continue reading
The city of Detroit, Michigan is about to default on almost $2.5 billion in debt and is asking the city’s creditors to take ten cents for every dollar they’re owed by the city. Continue reading
A federal judge has issued a ruling saying the city of Stockton, California would be unable to offer basic government services without bankruptcy protection.
The city’s troubles are attributed to a severely decreased tax base in the wake of the U.S. housing market crash. The tax base of the city declined 70% in the last few years. Continue reading
California cities are increasingly considering filing for bankruptcy or even folding after San Bernardino became the third California city in the last month to seek bankruptcy protection. Multiple cities have been slashing budgets and employee salaries in an attempt to reign in debts.
Michael Coleman, fiscal policy advisor for the California League of Cities, warns that bankruptcy might not be the only thing happening in the near future. Continue reading
