Auditor:Detriot may go Broke

The Detriot News reports:

With a dwindling tax base, a recalcitrant union work force, and pension and health care benefits it cannot afford, Detroit is running out of money and will not be able to pay its bills if major changes aren't made, according to a report released Thursday by Detroit Auditor General Joe Harris.

"The truth is that Detroit's treasury is hemorrhaging," said Harris, whose 10-year term as an independent city auditor appointed by the City Council ends in November. "Insolvency is certain. The only question is the timing."

Detroit Finance Director Sean Werdlow recently told the City Council that Detroit could run out of cash as early as December. That same day, Mayor Kwame Kilpatrick told the council that if the unions did not agree to contract concessions by Monday, he would announce layoffs.

We'll make a prediction, Detriot might not be the only city to have to declare a Chapter 9 bankruptcy in the coming years.It's difficult to control a budget when your city workers can vote for politicians that want to give them a pay increase.