Legislator blames ‘shady banker’ for Detroit’s problems despite voting to double debt
By Tom Gantert | Michigan Capitol Confidential
In June 2009, the city of Detroit’s unrestricted deficit had nearly doubled from the previous year, increasing from $501.3 million to $920.2 million, according to the city’s financial audit.
The state Legislature responded by approving a bill about six months later that doubled Detroit’s ability to finance more debt.
At the time, Mackinac Center Senior Legislative Analyst Jack McHugh wrote a blog titled, “Is Another Credit Card the Solution to Detroit’s Spending Problem?“
State Sen. Coleman Young II, D-Detroit, evidently thought the extra borrowing option was a good one because as a then-state representative, he became a sponsor of House Bill 5626 in 2009. Then-Gov. Jennifer Granholm signed the bill in February 2010 and Detroit’s ability to finance debt via bonds doubled to $250 million.
at Michigan Capitiol Confidential.