The article is pointing out that loss in revenue becomes a death-spiral that causes a loss of jobs and a further reduction in revenues. And that cities are largely powerless to stop it because some state government officials, well, they are assholes who welcome the ensuing chaos.

If anything, it's merely a warning of what people in much of America should expect in the coming years. If you live in a flyover city, it's probably going to look a lot like Flint in the coming decade.