AFP-MI: Don’t bailout Detroit

April 30, 2014

April 29, 2014

Dear Lawmaker:

On behalf of the more than 90,000 activists of Americans for Prosperity-Michigan, I am writing in opposition to any proposal that would allocate state dollars toward Detroit in excess of current revenue sharing formulas.

As reported by the Mackinac Center for Public Policy, Michigan has already rewritten its laws numerous times to give Detroit special treatment and more financial assistance. Unfortunately, it seems all this help has encouraged, not corrected, bad behavior. Detroit’s staggering debt is the direct result of fiscal mismanagement, corruption and cronyism.

Another state bailout will not solve Detroit’s fiscal troubles. Rather, the city should maximize its assets and explore opportunities for privatization in order to do right by its debtors and repair its infrastructure. Fiscally responsible policies will put Detroit on the path toward genuine reform.

Americans for Prosperity-Michigan will continue to educate our members around the state on the many taxpayer concerns surrounding a Detroit bankruptcy deal that involves state funds. A state bailout of Detroit would establish a dangerous precedent that could lead other cash-strapped municipalities to seek fiscal favors from Lansing. It could also drive up the cost of borrowing for governments across Michigan by increasing the risk—and thus the cost—of lending money.

Please don’t hesitate to contact me directly to discuss this issue more in depth, (517) 853-9073 or



Scott Hagerstrom

State Director

Americans for Prosperity-Michigan

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