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Detroit Free Press Editorial Page editor Stephen Henderson on what Detroit needs to do to return on the path to growth.
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And with an operating deficit of 265.
Million Detroit needs to get in the driver's seat to fix their budget crisis in Michigan judge has dismissed a lawsuit trying to avoid estate plan.
That would do just -- so -- one step closer to making sure they don't run out of money.
Or their fundamental problem so big that even that going broke is actually.
Just an eventuality at this point joining me now is Detroit Free Press editorial page editor Stephen Henderson.
Stephen to this was -- move by the city to resist -- aids intervention but.
Don't need state money.
When you velocity of money.
You know Detroit -- but structural deficit is far bigger even -- the number.
That you were just talking about that operating deficit.
Has -- you know -- over over time.
Every year gets bigger as revenues fall.
In terms of this the city's income men and property taxes so yeah I mean we need state money.
We need a lot of it.
This was a dispute over whether the state actually owes us some money -- the state would say they don't know us.
But but really good movie it's it's a distraction from.
The larger discussion which is which is about how you balance.
Something that's so badly out of balance and has been that way for so long.
I think in this situation is exactly akin to what we're watching in -- right now where you don't whatever money comes in in the short term just sort of fix the impending problem which -- exploded as soon as Friday.
They still haven't fixed the big problems is there any you're doing -- -- tackling the big.
-- Now well I mean we have an agreement now between the city in the state to try to start doing that right to try to start living within our means in terms of what we spend.
And do some things that we hope will grow revenue.
You know the truth is -- to the trade has lost more than a million people.
Over forty or fifty years.
We have lost.
55000.
Businesses.
Since the seventies and so this the tax base here just does not large enough anymore to support.
The city of the geographic.
And sort of government signs that we have this disagreement between the city in the status is supposed to start.
Addressing -- but but.
It's and that's going to be a very long term.
Proposition just like it will be.
In places like Greece -- we didn't get into this problem overnight when are gonna get out overnight.
What we do need everyone to do those Starr working the plan.
And stop fighting about the terms of the plan or who's in control.
Or who knows -- why.
And let me that's just not gonna get us there.
Give me a sense of -- main street thinks.
Or their understanding of the budget crisis there in Detroit -- Detroit residents understand the urgency of this.
A lot of them don't and and a lot of -- you know there we have very rich.
History of conflict here that's that's organized around city vs suburbs.
Black vs white rich vs poor Matt injects itself and every discussion you -- and so.
Of course that that clouds facts.
See you got a lot of the traders who think that this is about.
White people doing something to black people in the city they think it's about the state doing something the trailer or or Citi doing some in the suburbs.
And that's making it very difficult to have a rational conversation about how to fix this stuff it's making a very difficult.
For our elected leaders to make the right decisions.
We'll get through it though I think Detroit to have a tough place where survivors.
We'll get to the right the right answers it's just gonna take us a little longer I think most.
-- we -- to traders on our staff here fox business and you know it we feel for you guys and good luck and we're gonna check back to if you.
Hopefully a saga budget crisis Stephen Henderson Detroit Free Press how to get much.
