The Forum: Saving Cities: Detroit and the Problem of Municipal Governance

Milbank Tweed Forum: Saving Cities: Detroit and the Problem of Municipal Governance

Fiscal difficulties in cities as widespread as Harrisburg, Pennsylvania, and San Bernardino and Stockton, California, suggest that the bankruptcy of Detroit may indicate a nationwide municipal crisis. What are the causes of municipal fiscal distress and what reforms can prevent its recurrence? Are pensions for public sector employees the source of the problem, or are unions being unfairly blamed for distress that has deeper roots? Is municipal governance structured in such a way that it increases the likelihood of financial crises, and are there legal institutions that can reduce the risk that cities will confront budget imbalances? Do cities with "strong mayor" systems do better than cities with "weak mayor" ones?

Our panel addressed these issues and discussed the roles of municipal officials, public sector unions, and the legal system in ensuring fiscal stability for our cities.

PANELISTS:
Sonya Mays, Senior Advisor to the Emergency Manager, City of Detroit
Thomas Nitido, Deputy Comptroller, The New York State and Local Retirement System
Paul Romer, Professor of Economics and Director of the Urbanization Project, NYU Stern School of Business
Mary Williams Walsh, Reporter, New York Times

MODERATOR:
Clayton Gillette, Max E. Greenberg Professor of Contract Law, NYU School of Law

This event took place on Wednesday, February 12, 2014.