The City of Detroit declared bankruptcy earlier this week. Now $18 billion in debt, the 700,000 residents who remain in “The Motor City” are, on average, burdened with more than $25,000 debt per capita even though a full 35% of the city now lives below the poverty line. A federal judge halted the bankruptcy ruling on Wednesday, July 24th, and all eyes – both in Michigan and across the nation – await to see what happens next.
Educational Impact: Cash-strapped cities and states across the nation are watching this case with fervor. For over 40 years, residents have been leaving the city, and thus, lowering its tax base. Â The fewer the residents, the less able they were to carry the tax burdens a city the size of Detroit carries. Â While the bankruptcy does not affect education funding directly, Michigan already deals with lowered education resources. Â The collapsing infrastructure of the largest city in U.S. history to declare bankruptcy will not help the education system. Â The children who need the resources, the teachers who must work without those resources, and a city that can’t provide what its residents need are all victims of this bankruptcy. Â What the practical effects of this action will be may not be known for months. Â One thing is for sure: as students and teachers head back to school in Detroit, they will face even more challenges than ever.
