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How to Turn Around the Motor City's Ailing Economy

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    Michigan State Senator Rick Jones on fixing Detroit's fiscal problems.

  • Duration 3:34
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All right Detroit in an -- -- governor Rick Snyder expected to appoint an emergency manager for the city this -- state appointed review team determined -- Detroit is in a financial emergency.

So this is the only way to save the motor city that's certainly what my next guest believes state senator Rick Jones joining me now -- stuff.

Senator Jones thank you listen to what can -- -- an emergency manager do to turn things around or at least.

Help Detroit avoid bankruptcy in white is the city's mayor and City Council oppose having an emergency manager.

Well I have.

Nothing but respect for Detroit mayor big.

However the City Council has been obstructive.

-- I believe they're part of the reason the cities and so much trouble.

But they have currently.

Almost fifteen billion billion with a B in unfunded liability.

But half of that and pensions they simply don't have the money coming in to take care this problem.

They've done all the gimmicks the one time fixes they borrowed money to make payments.

It has to stop there in deep trouble.

I believe an emergency manager has a chance of turning the city Iran he's going to have to make drastic cuts.

The you know they're going to have to look at laying people off and probably cut in salaries and benefits from doing everything possible.

This is their last chance the next step is bankruptcy.

That's good but -- Detroit's population.

Drop is being quite alarming from one point eight million down to 700000.

That's a big tax basis just picked up and left.

Can you make that up with just cutting spending and cutting -- salaries.

-- If it were up to me.

I would dissolve the city of Detroit.

I would -- it.

To a size that they could work there is society is out there there could be a very vibrant.

The Detroit that would go into the future do you -- we'd be very -- up.

But currently -- do have to what you land mass for the population in in my opinion they need to shrink.

Well talking of Detroit you know look at -- federal government bailed out GM should the federal government do something to help Detroit.

Absolutely not the City Council has called for a bailout.

I I think that's ridiculous taxpayers should not bail out the city.

I will not vote to take money from my constituents in mid Michigan -- bail out the city they need to handle their own problem or go bankrupt.

You know what's amazing.

Senator Jones like the new data found that I'm a half of Detroit's -- -- property owners haven't paid taxes Smith sounds like Greece how did that happen.

Well you you've got some urban blight there.

There hasn't been enough enforcement did that needs to move ahead to that's something in an emergency manager can get all look.

So the theory is -- Detroit does file for bankruptcy that it could affect the creditworthiness of other cities across the state is not a very real threat do you think.

Well I think -- saw as a threat.

But -- you know what are the other ramifications of the -- suddenly bail them out.

How many other cities are gonna spend money like this if they think they're gonna get bailed out.

-- for no more bailouts.

Let's control the problem let's give emergency manager -- to take control immediately.

The governor under this plan has up to thirty days yeah and I'm urging him to act immediately.

Well we wish you the very best of luck state senator -- Jones thank you for joining us appreciate it.

Thank you.

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