Michigan Radio: Sarah Hulett

The state of Michigan is taking over its largest city's finances. Washington, D.C., attorney Kevyn Orr's job is to reverse a death spiral in Detroit, brought on by an eroding tax base, and years of unwise financial decisions — like promising generous retiree benefits with money that wasn't there, and a pension financing deal that backfired in a big way. Now, massive debt service that threatens the city's ability to provide even a modicum of services.

Detroit is broke. On Friday, Michigan Gov. Rick Snyder announced the state will take over the city's finances.

"It is time to say, we need to start moving upward with the city of Detroit," he said.

But the question on many people's minds is whether state intervention will be enough — and whether the more ominous and painful scenario of municipal bankruptcy can be avoided.

Adding Up The Debt

Just how far gone is Detroit? Eric Lupher, director of local affairs for the Citizens Research Council of Michigan, sums it up like this:

Eight Detroit-area public school students returning to classes this week are plaintiffs against a school system they say has failed them.

Their families and the American Civil Liberties Union say that the Highland Park school system has denied the students the right to learn to read, and that the state has a responsibility to fix that.

Michelle Johnson has five children in Highland Park schools. Her daughter is heading into the 12th grade, but can read at only about the fourth-grade level.