Detroit Cuts Deal to Avoid State Takeover

Just 24 hours before Governor Snyder's deadline for appointing an emergency manager for Detroit to help rein in its budgetary troubles, the city council has voted to approve a consent agreement with the State of Michigan.

2 minute read

April 5, 2012, 12:00 PM PDT

By Jonathan Nettler @nettsj


Matt Helms and Kathleen Gray report on the slim 5-4 vote, which came after weeks of meetings, rallies, and court hearings, to approve management of the city's finances by a "financial advisory board whose members would be appointed by Gov. Rick Snyder, Mayor Dave Bing and the City Council would advise and review all budget matters and grant approval of union contracts."

The agreement was seen by many supporters as the best of the unappetizing options available as, "Detroit is sinking under the weight of crushing debt, including long-term obligations of more than $12 billion from pension and benefits. The city also has had to contend with a population loss of 250,000 in the last 10 years, contributing to the rapid decline of property tax revenue and an explosion of abandoned homes."

As opposed to the threat of emergency management, which "could strip city leaders of virtually all of their control," the consent agreement allows for the continued involvement of the mayor and council in decisions about the city's business.

Still, not all were happy with the results of the narrow vote. According to Helms and Gray, the vote "came after two hours of impassioned pleas from Detroiters who wanted the council to reject the consent agreement...some angry residents accused city leaders of turning their backs on the city's legacy of unionism and its place as a majority black-run city."

"The major sticking point under a consent agreement is the reopening of union contracts."

Thursday, April 5, 2012 in Detroit Free Press

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight