Michigan Radio: Sarah Hulett

Detroit is broke. On Friday, Michigan Gov. Rick Snyder announced the state will take over the city's finances.

"It is time to say, we need to start moving upward with the city of Detroit," he said.

But the question on many people's minds is whether state intervention will be enough — and whether the more ominous and painful scenario of municipal bankruptcy can be avoided.

Adding Up The Debt

Just how far gone is Detroit? Eric Lupher, director of local affairs for the Citizens Research Council of Michigan, sums it up like this:

An entrepreneur says he's got a plan to curb urban blight in parts of Detroit. He's buying up acre after acre of abandoned lots and planting thousands of trees. But where backers of the plan see a visionary proposal, critics see a land grab.

Entrepreneur and Detroiter John Hantz, owner of Hantz Farms and the tree-planting effort called Hantz Woodlands, wants to plant at least 15,000 trees on about 140 acres. Hantz promises to clear out all the trash and keep the grass cut, things the city cannot afford to do now.

For many years — perhaps even decades — Detroit has been the poster child for economic malaise. Adjusting for inflation, per capita income in metro Detroit dropped more than 20 percent between 1999 and 2010.

Some analysts say regional cooperation might have helped keep Detroit above water when the car industry sank, but that entrenched divisions that pit the city against its suburbs, and blacks against whites, have hindered that.

A Deeply Entrenched Regional Divide

Eight Detroit-area public school students returning to classes this week are plaintiffs against a school system they say has failed them.

Their families and the American Civil Liberties Union say that the Highland Park school system has denied the students the right to learn to read, and that the state has a responsibility to fix that.

Michelle Johnson has five children in Highland Park schools. Her daughter is heading into the 12th grade, but can read at only about the fourth-grade level.

Tammi Warren has lived on the same winding street in the Detroit suburb of Inkster, Mich., all her life. But as she drives down the block in her Ford pickup, Warren points to several houses on her street that stand vacant, casualties of the housing market collapse.

Vacant houses mean less tax revenue for the city, and less revenue makes it harder for Inkster to provide basic city services.

"[The] city of Inkster has eliminated 38 positions," says City Treasurer Mark Stuhldreher. "It's about 25 percent, roughly, of the workforce."