Analysis Of The Article ' Detroit ' Bankruptcy Filing Sent A Cold Chill Down My Back

responsibility to solve problems often exceed the capacity of state and local authorities to respond effectively. On the other hand, policies developed at the national level may not sufficiently reflect the great diversity of interests across the U.S. to be effective at the local level. Moreover, the

In the time of Katrina, this idea made federal government believed that their nonintervention was justified, causing the misunderstanding between governments at all level and the failure of efficient disaster aid. However, considering the purpose of the Constitution, this is a misinterpretation of the Tenth Amendment. The Tenth Amendment is not a reason for federal government to refuse offer common Defence and welfare to each states. The Bill of Right that contains Tenth Amendment serves to limit the abusive power of the federal government. It creates a Constitutional system includes big and small government with balanced power and the right to check each other. This idea does not conflict with the federal government’s original intentions as how the preamble and Article. I. Section. 8 declares. In fact, the Tenth Amendment indicates the federal government assistance to the state and local government’s work. Before and after the disaster, the federal government should provide help to coordination with states

States exercise police power in which gives them the authority to adopt clean air and water standards, regulate safety in the workplaces, as well as to enforce laws that both promote and protect the health, welfare and safety of the people. A state’s police power also includes eminent domain, which means that the authorities can take over private property for public use just upon compensation. States provide their citizens with many public services including schools, healthcare, law enforcement, welfare services, public transportation, agriculture support, and conservation. These services cost the states a great amount of money every year, the largest portion of the budget for both the state and local governments are the more costly services including education, healthcare, transportation, and public safety. In order for states to finance and provide these services to the public they must levy taxes and barrow money.

A team of researchers from The George Washington University in conjunction with key leaders – evaluated the Detroit area to assess the state-of-healthcare deliverance to those in need. The problem was presented in a clear and concise manner: The uninsured and poor had limited to no access to the care they needed. Many resorted to the Emergency Department (40% of admissions were non-emergent), leading to overcrowding in the hospital. Those that are part of the safety net are providers of the poor and vulnerable populations: hospital systems, clinics, volunteers, primary care workers, and prevention workers that are there to prevent the overflow and influx that we see in the assessment. We will be addressing our main stakeholders, the

In order to fully understand the complex issues underlying a Chapter 9 bankruptcy, it is necessary to comprehend the unique United States constitutional challenges to municipal bankruptcy. The main constitutional issue can be boiled down to a clash between State sovereignty over its municipal entities as protected by the Tenth Amendment, and the necessity of a federal bankruptcy system. Any power asserted by a federal bankruptcy court over a State municipality can, if taken too far, interfere with the State’s constitutional right to control its municipality. It is this clash of State sovereignty and federal bankruptcy power that is the essence of Chapter 9’s unique construction.

Ethical dilemma is the concept of a complex situation where there is no apparent answer or there are two competing solutions (Winch). It is unlikely that one will achieve the correct answer in an ethical dilemma as the answer will vary due to several factors influencing the person’s reasoning. Factors such as culture, environment, education, family, religion, age, gender, media outlets, etc. can influence someone’s point of view in an ethical dilemma. The case study, “Bankruptcy at the Philadelphia Inquirer” represents a dilemma with no clear or apparent answer.

July 19, 2013, marked the largest municipal bankruptcy in United States history when the city of Detroit, Michigan, filed for bankruptcy protection. Detroit was in such dire fiscal straits that emergency manager Kevyn Orr described it as “the Olympics of restructuring.” This bankruptcy filing can be considered the most high-profile case of the many recent bankruptcy filings across the country, and with such notoriety the Detroit bankruptcy became a highly politicized affair with different political sides typically blaming the other side for Detroit’s problems. Understanding the true causes that forced Detroit to file chapter 9 bankruptcy is critical to preventing future municipalities from enduring the same sort of pain that Detroit faced in

On March 1, 2013, the Governor of Michigan determined that the City of Detroit was in the midst of a major financial crisis (City of Detroit, 2017). On March 14, 2013, Kevyn D. Orr was named the Emergency Financial Manager for Detroit pursuant to Emergency Municipal Loan Act (City of Detroit, 2017). On July 18, 2013 Orr filed for Chapter 9 bankruptcy on behalf of the City of Detroit (City of Detroit, 2017). The bankruptcy action was approved and became effective on December 10, 2014 (City of Detroit, 2017). When the order went into effect on December 10, Orr resigned his position and budget control was returned to the city of Detroit (City of Detroit, 2017).

You make a valid point in regards to local governments needing to be adaptable and the measures to possibly overcome them. I can think of an example of this that happened a few years back; engineering had scheduled a bridge re-construction that rendered the bridge that connected our Canada Day parade route to our parade disband area. The engineering department was incredible about keeping us updated and identifying that we were not able to cross the bridge, as there was no proper guardrails and this was a liability issue. We spent weeks trying to coordinate a solution between departments; each department had valid reasoning regarding their reasoning, controls and regulations surrounding their position for or against proposed

Chapter 11 is referred to as the reorganization bankruptcy. A debtor that files Chapter 11 may obtain approval from the court to continue operation of their business (UScourts.gov). In this chapter, the value on a secured debt, such as equipment loans, mortgage loans, or car loans can be adjusted to the market value. The unsecured debt owed to creditors can also be reduced. This chapter requires payments to your creditors. The payment plan usually lasts for five years. However, the court may require that the payment plan be extended past the five-year mark for business owners and corporations.

Detroit is a very well-known and diverse city. “Somewhere behind its neglected, graffiti covered skyscrapers are charming reminders of a city that was once among the world’s wealthiest” (Gray). This city has been through a lot. Detroit was first founded by the French in 1701 and then used as a fur trade post. Jumping a little in the future, it has had riots and protest for equal rights among its busy streets. Detroit is also known as the Motor City. “By the mid-twentieth century one in every six working Americans was employed directly or indirectly by the automotive industry” (Sugrue). Yet after everything this city has endured Detroit is thought of as a place of fear. It has a lot of history and has a lot to offer if people would let

On December 10th 2014, Detroit exited the biggest municipal bankruptcy in U.S history. "We're going to start fresh tomorrow and do the best we can to deliver the kind of services people deserve," said Mayor Mike Duggan(Davey,2014). Although both the government and citizens suffers a lot through the bankruptcy, after experiencing the loss of population, pension and healthcare hole and solving the problems with retirees creditors and bondholders, the city Detroit is expected to be improved than before such as the services and infrastructure. Even though all the financial slate is clean, there are still some problems remaining about how Detroit shifts its fate. For example, stopping the large migration of taxpayers and bringing jobs to those

The bankruptcy of Orange County, the high economic county of California, took a lot of people by surprise. The ratings of the bonds were low risk investment grade, yet because of a highly risky investment strategy and increasing interest rates, the bottom fell out and the option Orange County followed was bankruptcy. For investors that stayed with Orange County through restructuring and after emerging from bankruptcy, they were rewarded with full principal payments, and past due interest. The county also started an advisory committee to prevent future

Gup (2003) brings out that financial trouble is a periodical concern that occurs to banks, industrial companies and other organizations. Gup begins his article by reviewing the history and importance of government bailouts for corporate failures. In his article on “What Does Too Big to Fail Mean?” he uses rhetoric questions in order to engage the readers in his analysis of government bailouts. For instance, he poses the question, “what should governments and government regulators do about it?” (Gup, 2003, p. 29). ‘It’ in this case referred to the periodical financial troubles of the above mentioned institutions. By using the question, Gup engages the reader in trying to think about what the government can do in cases where businesses face

Daly City is the closest to bankruptcy of any city in San Mateo County. I believe the reason for this is a lack of diversity of talent on the council over the last 2 decades. I am the first financial professional to run for the office in over two decades. I bring over a decade of financial analysis experience in both the private and public sector. Because I have worked in large companies with budgets bigger than Daly City, I understand how to manage expenses while growing the top line revenue. Both of these need to be addressed in our city budget. I also don't hold alliance to political parties and special interests' agendas, so I can be a partial and analytical