Detroit Considers Privatization

The city of Detroit is broke like many other cities. However, they are facing the real possibility of running out of cash… next month! According to MLive.com:

In his speech tonight, Bing is expected to propose privatizing the city’s public bus system and lighting departments, both of which have have been failing residents but reportedly cost them $100 million a year in subsidies.

Brown supports that long-term plan, but he is hoping the mayor will couple it with a short-term strategy to lay off up to 2,300 city workers if unions fail to agree to long-discussed concessions.

If Bing doesn’t, City Council will.

“If the mayor tonight comes out with a plan that does not address the short-term and long-term issues, the Council is going to come out with a plan. We’re going to put it in a resolution, send it to the governor and say ‘We’re willing to make these cuts.’”

The financial crisis we face is serious, but it’s nice to see experiments like these taking place. The city may just find that privatization is the way to go, encouraging other cities to follow suit.