Detroit is on the brink of ruin

"DETROIT, Mich -- Detroit has fallen so far into debt that the only way out is through bankruptcy or mass layoffs, according to a former city auditor who is familiar with the city's financial structure.

Mayor Dave Bing is trying to plug a $60-million to $80-million cash shortfall and deal with a ballooning $300-million deficit. He is being hampered, though, with falling revenue from property and income taxes and state revenue sharing.

"I don't see the city getting out of this financial mess short of a bankruptcy," said Joe Harris, a former auditor general who was chief financial officer in late 2008 and early 2009.

Bing took the first step last week in addressing the cash crunch by laying off 205 workers, but Harris calls the move a stopgap. The city is bleeding at least $5 million a month, Harris said."

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