Michigan Rep Wants US Bailout for Detroit

State Rep. Hansen Clarke seeks a bailout for the city similar to the one New York City received in 1975.

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Hansenclarke.house.gov

The city of Detroit's automakers General Motors and Chrysler received a federal bailout often called the "Detroit Bailout." But while the city's automakers have been raised from the dead, the city is still struggling to get out of the ground.

State Rep. Hansen Clarke is looking for a second bailout, but this time for the city, according to the Huffington Post. The bailout that Clarke is proposing is similar to the 1975 federal bailout of New York City, which received $2.3 billion. Clarke said he's looking for a combination of grants and loans.

"It's the same situation that's just as grave," Clarke told HuffPost. "We need to provide relief for the city of Detroit in order to create jobs in this country and rescue this symbol of our manufacturing power."

Clarke said he plans to seek emergency aid from Congress and the Obama administration and may seek to introduce legislation as early as next week.

Detroit is in such a financial crisis that an emergency manager may have to take over the city at the end of the month. That would mean the state would take over the city, and Clarke is not in favor of that. "What I'm trying to avoid is a takeover by the state that will result in massive cuts, massive layoffs and the sale of assets," Clarke said. "That would actually cripple our ability to bring in new jobs. That would be damaging to the city and to our national economy."

The city is facing a cash shortfall that could leave it unable to pay bills and meet payroll come April. The budget deficit is near $200 million for this fiscal year, and its long-term obligations are $13.2 billion.

Read more at the Huffington Post.

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