In a move that has very few precedents, Governor Rick Snyder has made a move to take over the finances of Detroit. The finances of the city are said to be in such a bad predicament, that a takeover is necessary. An emergency manager will be appointed to resolve the crisis, thus over-ruling all municipal authority. This person also will have the power to enact drastic cost cutting measures like voiding union contracts and selling public property.
This is a major development, and does not bode well for states that are in financial discord. Austerity is the movement of the day, and this could take place in other areas of the country as well. How this will end, remains to be seen.