All Eyes on DetroitPosted by in Blog
The name of Michigan’s largest city has been on the minds of many leaders over the past few weeks. CGR’s own Chief Economist, Kent Gardner Ph.D., examined what killed Detroit in a recent blog post. Govistics data also help tell the story of Detroit’s tumultuous struggle to regain fiscal stability over the decade—a story we know led to current headlines on bankruptcy.
Both revenue and spending have been below the inflation benchmark since 2005.
Fifteen Years of Detroit Revenue and Spending
The above chart (created using Govistics excel downloads) shows that while Detroit’s problems began before 1997, the city’s most recent downward turn began in earnest between 2005 and 2006, when spending and revenue dropped 43% and 38% respectively. Total revenue plummeted in 2009 due to losses in insurance revenue before recovering slightly in 2010 and 2011.
Can Detroit recover? Stay tuned!