Now is not a good time for municipalities in Michigan. The city of Hamtramck (population 23,000) has asked permission from the state to declare bankruptcy, due to a $3 million deficit it is unable to close. Hamtramck officials say the financial mess was caused by high labor costs and Detroit’s refusal to pay the city millions in tax revenues generated from a General Motors plant. The state treasurer has offered to loan money to the struggling town.

 

Another nearby town, Mount Clemens (population 17,000), has reached out to local organizations for donations to help fill local coffers. Located 25 miles outside of Detroit, Mount Clemens is hoping churches, schools and the local hospital will help reduce the staggering budget deficit. Mount Clemens already gets by without a local police force, which was disbanded six years ago because of money shortages. Currently, it is facing a $960,000 deficit that could grow to $1.5 million by next year.

-Noel Brinkerhoff

 

Hamtramck Attorney Asks Granholm to Grant Bankruptcy (by Melanie Scott, Detroit Free Press)

Debt Rising, a City Seeks Donations in Michigan (by Nick Bunkley, New York Times)