Lansing leaders share mixed reactions to bankruptcy ruling

Lansing leaders share mixed reactions to bankruptcy ruling

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(WJBK) -

Word spread quickly at the state capitol about the Detroit bankruptcy decision. Some state leaders think this is the beginning of the solution to Detroit's financial problems, while others believe this is a setback.

VIDEO: Click on the video player above to hear from those in Lansing in Fox 2's Tim Skubick's report or read it below
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"I think its horrible."

"I'm saddened by the fact that we have to be there."

"This is really going to be about restoring a city, and that's a good thing for the people of the city of Detroit."

There was no shock - zero shock - in this town that the state's largest city is making history as the largest local government ever to be in Chapter 9.

The Senate Democratic leader Gretchen Whitmer is chastising the governor for using this option when others were available, she contends.

"I don't think he's been honest with the people of the state, in that consideration, and I'm hoping some day we get to the bottom of it all. But I don't trust this governor and so I'm very leery of where they go from here," says Whitmer.

Rep. Fred Durhal Jr. is more optimistic.

"Today, this is not a good day for Detroit but tomorrow might be better?" Skubick asks him. Durhal replies, "I believe so, yes."

"Where do you get that optimism from? Skubick says."

"Well I've lived there all my life and I know the people of Detroit are very resilient. They're going to back their government such as it is," Durhal replies.

Sen. Coleman Young Jr. refused to say he hopes it will work.

"I think it's wrong," Young says. "You don't hope it works?" Skubick asks in reply.

"I don't want to say - the reason why I'm hesitant to really answer that question is one, I think it's wrong, and secondly, I think there's going to be so many people that are going to be hurt in that process," says Young.

"Bankruptcy has a stigma," Skubick says to Sen. Randy Richardville.

"Well, sure it does. But when you're out of bankruptcy that stigma goes away," Richardville says.  

"Can you survive in the middle, though?" Skubick asks. "Yeah, I think so. I think the tenacity of the people of Detroit is something that's under estimated," Richardville says.

The Snyder administration has a lot riding on this.

"Bankruptcy isn't the problem; bankruptcy is the solution," says Lt. Gov. Brian Calley.

Not everyone in this town agrees.

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