<p>What a great day! Hopefully bondholders/investors make out ahead and pensioners/city deadbeats get nothing in the upcoming bankruptcy proceedings. Also wouldn't it be cool when the city has to sell its Van Gogh from the DIA? Really really exciting news this morning! </p>
<p>Ideally this will cause a borrowing crisis in the muni market for cities/states that are grossly mismanaged and infested by union-related obligations (Chicago/Illinois/California I am looking at you)</p>
<p>Does this affect U of M in any tangible way? That's what I am more concerned about. Let's discuss.</p>
<p>I would think it could impact in two ways - image and fiscal. Image, is that for some OOS applicants, AA is viewed as connected somewhat to Detroit and this damages Detroit’s image…again. Fiscal, someone will understand this much better than me, but, if the State has any bailout responsibilities at all, then funding for higher ed will just continue to fall.</p>
<p>U of M, Ann Arbor & Wash County have been distancing themselves from the crooks in Detroit and Wayne for decades. And Snyder isn’t going to let his alma mater suffer in any way shape or form.</p>
<p>With the whole Detroit bankruptcy thing, I think it’s Wayne State we need to worry about the most. I can’t imagine this making their upcoming school year any better, and they also have a med school and law school to deal with too. Who wants to go to the D to become a doctor/lawyer when the city itself declared bankruptcy? They already raised their tuition by over 9% for undergraduates, and now this. And there’s also the University of Detroit Mercy and it’s undergraduate school, dentistry school and law school. </p>
<p>It seems that Detroit and its schools, both primary/secondary schools and universities, just can’t get a break. It’s so sad.</p>
<p>And the fact that you are more concerned about an already established university that really has nothing to do with Detroit is more concerning for ME. </p>
<p>For once, something is going on in the state of Michigan that has nothing to do with U of M. U of M is not the only thing that matters in the state. The city of Detroit is equally and differently important because it helped build up our state back in its early development.</p>
<p>No impact on UofM. The U is flush with cash and has strong revenue streams. Its national / global reputation is as strong as ever. You could say that state funding is threatened, but this is a small piece of the pie for UofM, and the state economy is improving, so should be OK. Heck, UofM could go private if needed. </p>
<p>I hope Detroit restructures and downsizes successfully, as a blueprint for other cities with similar situations.</p>
<p>My comments below are from a perspective of a father who will be sending his daughter to Michigan this coming fall. I am a resident of the northern suburbs of Detroit and have a front row seat to the tradegy happening in Detroit. </p>
<ul>
<li>The city of Detroit only represents about 17% of the metropolitan area. The majority of the remaining communities (on a population basis) are doing quite fine.</li>
<li>The bankruptcy represents an effort by Governor Snyder of the State of Michigan to right the foundering city. For many years (just like many other cities and states on our union), the political leaders of Detroit have made the decision to borrow money to pay for pensions obligations and bond holders at the expense of city services to the 680,000 or so residents of the city and the current city workers who have had to endure cut after cut. Snyder has said enough is enough, the only way to restore city services is through a Chapter 9 bankruptcy. He means to break the cycle of unsustainable pensions and an unreasonable debt load (given the ever shrinking population of the city). This way, the city has a fighting chance at recovery.</li>
<li>If anything, with a bankruptcy judge overseeing the “restructuring” of Detroit, the city will be an improved place to live for those who choose to do so.</li>
<li>The impact to the University of Michigan will likely be minimal. There are no financial ties between the city and the university (unless UofM had much of its investments in City of Detroit bonds, which is doubtful).</li>
<li>From a locational perspective, Ann Arbor and Detroit are worlds away. Even the Detroit Metro airport is nowhere near the city itself (if there are parents worried about safety there).</li>
</ul>