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And now we've got so let's get to the Detroit story that's our rolling through the Michigan governor has cleared the way for -- state taken -- all of -- Detroit.
Joining the company now is send a guerrilla.
He's with the Detroit regional chamber of com us senate I wanna ask you the key question here because we've boiled this thing down to cause.
Detroit my that gets a bailout from the state all the Fed's some more money coming in from an outside source all it goes bankrupt.
What do you think.
Well I just not the choice right now the governor has provided this city Detroit some tools to restructure.
Just like a company -- before before bankruptcy proceedings so we think this is a great step to avoid a bankruptcy.
Okay but there will be some -- money coming into Detroit because -- virtually out of Detroit they can't meet the payroll.
Unless they get some money from outside I guess I'm pulling up very loosely a bailout of -- Well there's certainly some government government assistance from this state coming to the city.
But a lot of -- this is a city getting its own act together I mean for example the city's doing a terrible job.
Collecting business and personal income taxes from the -- -- from from the residents.
That can be improved the state can help with that of the state is selling the state fairgrounds which happens to be in the city of Detroit -- to make room for development that'll be a boon.
To the city of -- are -- things a state can do.
But it's really letting the city get out of its own way and let the private sector flourish in the city of Detroit.
I you look I agree with letting the private sector -- Wyoming -- but the one area you've not mentioned is the pensions which the city I was who has retired employees.
Yet got -- them you're gonna get them under control and you gotta do it now.
Are absolutely in fact we are in completely and support.
Significant restructuring of the city's long term debt there's a significant restructuring of the city services.
The city really needs kind of -- a GM like overhaul and look how successful lust for General Motors so we have some time plates.
That have worked and will work in the city of Detroit you think it was successful for general -- Well I think if you look at where did General Motors is today vs were they were in 2009 -- consider that to be a success and I helped.
Work on that package job back in 2008 and 2009 when -- -- with the federal government and frankly.
It is work much better than that I had anticipated back then all right so what do you see even Detroit in the immediate future restructuring plan.
And then -- Well but some -- our basic needs need to be met for example our cops on the street.
Under the current city charter is absolutely impossible because -- the city chartered and essentially the city's constitution is so complex.
An emergency financial manager can cut through all that bureaucracy.
Right now we have something like sixty uniformed police officer that work in the payroll department.
I'd rather have those cops out on the street that's something that can be done fairly quickly.
Garbage services public lighting all those things can move much much faster.
When we don't have to worry about the bureaucracy that the city is set up over the last forty -- sandy how much money does the state have to put it.
Just for the short -- transition.
Well right now the city of Detroit is running at about a 327.
Million dollar deficit for this fiscal year.
Some of that can be made up through increased tax collection and some other avenues.
I'll do it again this state hasn't mentioned a number yet not -- one of speculative what that number might but he will be hundreds and obvious these.
Well I I get I don't want to speculate in terms of how the State's gonna handle that's that's why sensible bailout amid by buying look you you've got to put at least a hundred million in you're not gonna get the majority of this 300 million dollars in debt you get -- gonna get back from extra tax revenues within cities Detroit this.
That the economic in the money.
You know gonna get it so you gonna have to have at least a hundred billion from the senate from the state that's why -- call -- the bailout of -- it is.
Roster I'm not sure the state legislature is gonna approve.
A hundred million or more for the city of Detroit right now I just don't think that is that is gonna be possible to -- about his state might help with.
That that is well again I don't nobody wants and nobody wants that either I mean that the state as I note that the surrounding that's -- I want that coming down to it did this situation is so would die.
That is bail out -- bankruptcy and with you know back citi's.
-- -- agreement but clearly.
From a financial point of view no way around.
Well I think that -- we have this tool that has never been tried before in Detroit.
We are very optimistic about this we've been cheering the governor on in this process.
We are very optimistic that this is the right step to take.
And talk about a bankruptcy frankly it's premature right now hi good luck -- -- to grow up from the -- -- the regional Detroit chamber of -- thanks so much appreciate it.
Thanks I waited.