Financial stability agreement "huge step" for Detroit

Apr 5, 2012

The Detroit City Council signed off on a consent agreement with the state of Michigan Wednesday afternoon.

Mayor Dave Bing signed the agreement from his hospital bed. Bing is being treated for acute pulmonary embolism.

Susan Demas, political analyst for Michigan Information and Research Service says, “This is a huge step. This is potentially how Detroit gets back on track. We’re all crossing our fingers it works.”

As of right now there’s no cash attached to this agreement, but Ken Sikkema, former Senate majority leader and senior policy fellow at Public Sector Consultants says there is a possibility that in the months to come Gov. Snyder might ask the legislature to provide revenue or aid to the city.

He says, “I think there will be tremendous resistance to that, and it’s part of a larger picture here…there is around the state still a lot of skepticism around whether this is going to work or not.

How might the legislature react if Gov. Snyder asks for additional support?

Demas says, “I cannot image that anybody wants to take that vote before November, this is an election year. And this will be an issues used against Democrats and Republicans alike out state if they voted for this…I’m just not sure they can scrape up the votes.”