CRC Report Explains the Organization of Detroit's Finances
Citizens Research Council is pleased to announce the publication of a new report on the financial organization and structure the City of Detroit municipal government. This report is part of a series occasioned by the city’s narrowly averted cash crisis, by state intervention under Public Act 4 of 2011 and the adoption of a consent agreement establishing a Financial Advisory Board, and by continuing efforts to find effective solutions to intractable municipal problems.
The report, Detroit City Government Organization: Departments, Funds, and Deficits, describes the accounting and operational structure of the city government and includes a list of definitions related to budgeting and accounting. Future reports on Detroit will describe changes to the city’s economic base, city government revenues and expenditures, the budget process, staffing and wages, debt and credit ratings, and other factors affecting the city government’s financial condition.
A number of strategies have been, and will be, proposed to address the city’s financial and operational challenges. According to Senior Research Associate Bettie Buss, "Policymakers and citizens need to understand the municipal government’s funding structure in order to assess the effects of proposed changes in departmental organization and staffing, privatization, sale of assets, transfer of functions to other governmental or nongovernmental entities, and other changes that may be proposed to reduce the General Fund deficit and restructure the municipal government." This report explains the city government’s fund structure and the relationship of departments to funds, as well as the terms used to describe financial processes and conditions.
The full report is available at no cost on the Citizens Research Council's website, www.crcmich.org.
Founded in 1916, CRC works to improve government in Michigan. The organization provides factual, unbiased, independent information concerning significant issues of state and local government organization, policy, and finance. By delivery of this information to policymakers and citizens, CRC aims to ensure sound and rational public policy formation in Michigan. For more information, visit www.crcmich.org.