After Detroit, another city ponders bankruptcy - WNEM TV 5

After Detroit, another city ponders bankruptcy

Posted: Updated:
FLINT, Mich. (AP) -

As Detroit attempts to emerge from bankruptcy this year, another Michigan city with strong auto industry bonds could be on the brink of beginning the same process.

Flint also has suffered a spectacular drop in population and factory jobs, and a corresponding rise in property abandonment, much like its insolvent big brother an hour's drive south.

Flint's state-appointed overseer says the city can forestall bankruptcy with imposed cost-cutting and tax- and fee-increases. But he's concerned it would have to seek court relief if a judge rules against cutting retiree health benefits.

Some experts agree that adding $5 million to this year's budget alone dramatically increases the risk of bankruptcy. Yet some retirees say the city is threatening, not negotiating, and that going back on long-promised benefits will hurt pensioners.

Copyright 2014 Associated Press. All rights reserved.

Powered by WorldNow
WNEM
Powered by WorldNow CNN
All content © 2014, WNEM; Saginaw, MI. (A Meredith Corporation Station) and WorldNow. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.