Tagged: Detroit debt

A Detroit mayoral candidate says a state financial review team vastly overstates the city’s debt burden—and their motives are political.

Lisa Howze, a former state representative and an accountant, says her own calculations show the city’s debt load is just a little over $2 billion.

In its report outlining Detroit’s financial emergency, the state review team put the number at closer to $15 billion. Their report is now in Governor Snyder’s hands as he decides whether to appoint an emergency manager for the city.

A recent report from the Citizens Research Council of Michigan highlights a sometimes overlooked part of Detroit’s current fiscal crisis: the city’s debt and legacy costs.

According to the report, Detroit has about $14 billion in liabilities (though about $5.2 billion of that is for the Detroit Water and Sewerage Department, and thus shared with its suburban customers).