Detroit-Our finances are crumbling-Future does not look good-Number of people fleeing to other states for a better life is increasing
Detroit's finances crumbling; future bleak-flat broke is a term that applies to the city
Detroit is broke and faces a bleak future given the precarious financial path it's on, according to a new report out by the city's state-appointed emergency manager.
The report was released late Sunday by bankruptcy attorney Kevyn Orr and is his first on Detroit's finances since officially taking the job in March.
Under state law, the report was due within 45 days of Michigan's newest emergency manager law taking effect. Orr's spokesman Bill Nowling had warned last week that the report was an early look at Detroit's fiscal condition and would not be glowing.
The summation is the latest blow to the city which came under state oversight in March when Gov. Rick Snyder selected Orr to handle Detroit's finances. Then, the city estimated its budget deficit to be about $327 million. Detroit also has struggled over the past year with cash flow, relying on bond money held by the state to pay some of its bills.
But Orr reports that Detroit's net cash position was negative $162 million as of April 26 and that the projected budget deficit is expected to reach $386 million in less than two months.
He also warns that the city's financial health might change as more data is collected and analyzed.