Case Study Findings and Recommendations
You are a municipal budget analyst. Using your favorite search engine, locate the budget of a municipality that has completed a petition to file bankruptcy. Some examples include Detroit, Michigan; Stockton, California; Central Falls, Rhode Island; San Bernardino, California; Prichard, Alabama; and Vallejo, California.
Develop your case study findings and recommendations consisting of no less than 500 words in which you discuss the following:
- Briefly describe the municipality’s demographics.
- Evaluate the previous three-year trend of the municipality’s major revenue sources and expenditures.
- Analyze the impact of the issues contributing to the municipality’s budget deficiencies.
- Propose three alternative financing options.
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Case Study Findings and Recommendations
In the United States history, there are several municipalities that have filed for bankruptcy. Public institutions file for bankruptcy when their budgets have huge deficiencies specifically where the revenue collected is not enough to meet the various expenditures of the municipality. In 2013, the city of Detroit became the biggest municipality in the history of the United States to file for bankruptcy. The debt was estimated to be around $18 to $20 billion. Detroit has a population of about 5 million people. 70% are white, 22% African-American, 3% Asian, and the rest from Native Americans and other smaller minority groups. The median household income for families in the city is estimated to be $57,000.
(584 words)