Why is Detroit broke?

The Detriot Free Press reports:

The city enjoyed a respite during the 1990s under Mayor Dennis Archer, who benefited from having fellow Democrat Bill Clinton as U.S. president and a booming economy.

Under Kilpatrick, the city has suffered one of the worst economies in its recent history and the budget has reached a crisis point.

When Kilpatrick took office in 2002, he faced a $75-million shortfall (Kilpatrick says it was $100 million). That has skyrocketed to $187 million today.

Archer said he left a template for Kilpatrick that included selling an 860-acre city-owned tract for $50 million. That would have helped eliminate the first-year deficit and created a surplus of $11 million.

Kilpatrick said he could get more money for the property. He was wrong. The city has sold more than 400 acres for $18 million and is expecting to get $7 million from additional parcels.

Meanwhile, estimates show the city lost up to 12,000 residents a year over the last five years, further eroding the tax base.

The city's pension and health care costs increased by 26% since Kilpatrick took office, even as the city spent 19% less on salaries. By comparison, during Archer's last four years in office, from 1997 to 2001, employee benefits increased by 4% and salaries went up 20%.

Notice how land will be sold to pay the bills.Other cities will follow.