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Detroit on the Brink of Bankruptcy

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    State Sen. Rick Jones, (R-Mich.), on growing calls to bail out the city of Detroit.

  • Duration 4:41
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Right now -- city under economic siege Detroit.

Is facing the very real possibility of being the latest and biggest municipalities.

To file for chapter nine bankruptcy Detroit mayor -- -- says the city will laid off 400.

To 500 workers in the next few months but it's gonna take a lot more than that to save the city from going broke for more on this.

Right -- Michigan State senator Rick Joseph most.

Thanks for joining me senator and do you think of these latest if it they do these latest layoffs.

Will it satisfy the -- does this city needs in order to get more stay -- in.

I think it's a good start but is simply not enough what we have is -- City Council was totally dysfunctional.

A -- -- mayor being asked him to come in -- -- sorry were on holidays it's unbelievable they spend like there's no tomorrow.

Yet you say that they think they deserve a bail out what makes you think that that's how they -- While there is is Detroit city councilwoman who came on national TV.

It said President Obama we all voted for -- it's time to bring the -- kid.

Bail us out there that's outrageous.

That.

The folks think they can just spend money like no tomorrow and then expect anybody else to bail -- -- I can tell you my constituents for mid Michigan are saying no bailout they need to fix the city themselves.

And it's going on all across the country and it's why we take so much interest and as I mean we've seen counties.

-- cities at least going -- rob elsewhere around the -- -- see -- states and I worry about what's gonna eventually happen with California as a whole.

But it seems like.

You know this is the saddest globally people believed that the state or the feds will come in and bail them out you have the political will in your state.

To really say no.

I believe we -- You know Michigan is on followed.

You -- ground here we're doing very well we have a balanced budget every year we're required -- state constitution.

We don't have a problem and it's time for all the cities to wake up -- balance their budget.

-- so what is really gonna happen here -- -- there are couple other plans that are possible me talk about appointing an emergency manager.

To come through and make all the -- cuts but as I understand it there was a lot from that was supposed to come in and do that and the City Council -- them that.

That's true the governor made -- offer would you like.

A emergency manager to -- -- a law firm and help you and they -- definitely that we'll just run it ourselves.

Yeah yeah they're gonna -- jobs so why would they possibly bring anyone -- and how.

Another plan is to do is an all this city and incorporate into Wayne county this is something we've heard a lot about.

Doesn't -- just also put their troubles back on everyone else's -- Well in all the problem with the try.

Is it lost 25% of their population in the decade.

A person left every 22 minutes and it's always had such a shrinkage in population they have a lot of -- -- The simply isn't being used to said he -- make it.

In it may be tied to consider dissolving the city.

And reenergize -- with a smaller city money could be.

You taken one step further you say maybe you reduce the size of the city by bulldozing abandon properties.

I could you really have an interesting idea could you really do that what would it take is it we -- and how would help.

Well we have a lot of prior.

In the city has taken and they're they're paying no taxes is just basically vacant property.

And I know there are businessmen that have offered to come in and help perhaps with some agriculture in the -- softly.

To pay a -- taxes has so far the City Council says no.

So why would bulldozing in making the city's smaller going to be talking about bulldozing a land and no one pounds that are are I don't I guess I don't understand the details of that well a lot of the property is gone back to the city for lack of.

Paid taxes that we simply have some -- bill -- Even if you deal -- homes.

It is it was time to make the city safer by getting -- those those vacant homes -- if you had to bat what would you bet is really gonna happen here.

Or right now I think you know it'll drag out for a while you know we're all hoping the City Council counselors senses nobody must see a bankruptcy.

If that happens.

Vultures come -- and they will pick up all the jewels of the city you know -- we have Cobo -- we have bell while.

You know I I hope it doesn't ever have -- but we have the -- to -- down there.

And who most what would be purchase what would be gone forever.

Yeah I don't know you're -- my investor that might be good solution -- -- -- -- we appreciate it hope you'll come back and give us an update as more happens fascinating story.

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