Michigan has declared a financial emergency in Flint, allowing the state to takeover the city’s finances and Detroit may be next if the city and municipal unions cannot agree on concessions, according to a Wall Street Journal report.
Flint has a $25 million deficit and Detroit will run out of money by February, the Journal reported, but union representatives say the savings should not come from union concessions.
"We have already given back enough in concessions," John Riehl, president of a leading public-employee union in Detroit, told the Journal.
Flint would be the largest financial takeover for Michigan, but not the first. The state has appointed emergency managers in three other cities, according to the article, as well as Detroit’s school district.
Read the full article at www.wsj.com.
Jon Byington is the founder of DosLives.com, a news and entertainment website that reaches the growing number of Latinos in the U.S.