The clock's running out on Detroit. City leaders are up against a $200 million deficit driven by exploding labor costs and may not be able to pay the bills come May. The state of Michigan has just swept in with a deux ex machina. Trouble is, city pols don't like the strings attached.
Governor Rick Snyder is offering Detroit a "consent agreement," which includes $100 million of state-backed bonds that would tide the city over until labor agreements can be restructured. The catch: Labor agreements will have to be restructured. The compact between the state and the city would turn over financial decision-making to a nine-member financial advisory board of state and city appointees who would have the authority to amend labor contracts.
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