DETROIT (AP) – A year after its exit from a brief but embarrassing bankruptcy, Detroit suddenly has something it long lacked: money to spend.
After paying down debt and other expenses, the city’s budget is projected to have a $35 million surplus for the fiscal year that began July 1. That’s a major improvement from a few years earlier when it often struggled to find the money for worker paychecks.
Thursday marks the anniversary of the end of Detroit’s bankruptcy, and changes are noticeable across the city.
So far, the city has met all the targets it agreed to under the bankruptcy such as developing a four-year financial plan and reaching a collective bargaining agreement with a major union. As a result, a bond rating service upgraded Detroit one notch this year, citing income tax growth and other improvements.
“Looking back, most people would be remarkably surprised at the progress the city’s made,” state Treasurer Nick Khouri said. “… These are the best of times right now for the economy. When we’re doing long-range budgets we have to understand and try and plan for the bad times, not just the good times.”