There is a lot of public resistance to Detroit’s consent agrement, a move that would allow the state to appoint an outside board of experts to take over the city’s finances. The agreement is just a shade away from the state appointing one emergancy financial manager (EFM) who would also control the cities finances, the difference is, an EFM would be taking away more than union jobs– he or she would toss the power of elected officials as well.
According to Mayor Dave Big, the cash strapped city only has three options: accept the concent agreement, get slammed with an EFM, or file for bankruptcy. While none of these options are good, Bing and the majority of city council members believe the consent agrement is the better of three evils.
And while nayways abound, who has offered viable options that would save the city aside from a true financial collapse?
One idea comes from U.S. Congressman Hanson Clarke, (D-13), who believes the city is eligible for a federal bailout, much like the one provided to GM and Chrysler.
The Huffington Post reports:
“Clarke said he plans to seek emergency federal aid in Congress and from the Obama administration and may introduce legislation as early as next week. His plan is modeled after the federal bailout of New York City in 1975. ‘It’s the same situation that’s just as grave,’ Clarke told HuffPost. ‘We need to provide relief for the city of Detroit in order to create jobs in this country and rescue this symbol of our manufacturing power.'”
How likely is a City of Detroit bailout in the heat of a presidential election year? Not very. But hey, it’s worth a try.