Detroit mayor proposes 'last' budget under state oversight

From Reuters - February 23, 2018

(Reuters) - Detroit Mayor Mike Duggan unveiled a $2 billion fiscal 2019 budget on Friday that he said could mark the last spending plan while the citys finances are controlled by a state oversight board.

Michigans largest city is expecting its post-bankruptcy financial review commission to go dormant this spring after audits showed balanced budgets in fiscal years 2015, 2016 and 2017.

Once we get this budget passed we have the opportunity to get out from active state oversight, the mayor told the city council.

He added that while the commission would continue to review Detroits finances, the citys budget, contracts, and other matters would not be subject to the boards approval as long as spending plans remain balanced.

Detroit ended what was then the biggest-ever U.S. municipal bankruptcy in December 2014 after shedding about $7 billion of its $18 billion of debt and obligations. One element of the citys federal court-approved bankruptcy exit plan was the creation of a state oversight board.


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