The bankruptcy of Detroit, Michigan

Recently the city of Detroit, Michigan, the city once home to three mighty U.S. car manufacturers declared bankruptcy because it was unable to pay its bills and obligations to its employees and with bankruptcy as things goes, the pension and other obligations are in jeopardy. Does this mean that the former employees are at fault or the city mismanaged itself so much that they had to declare bankruptcy? Since I am not privy to this information I cannot say for sure but is this start of or model to be followed by other cash strapped cities, counties and states that are under heavy debt burden but are using financial gimmicks to show that they are financially stable. Only time will tell but for now this bankruptcy is being fought in federal courts to determine if the terms of the promises made to the former city employees can be modified. But whatever happens in Detroit, it is for sure a cause of anxiety for other city and state employees because the amount of promises that has been made to them by the politicians is nowhere near the amount that is available in the treasury of these governments and ultimately it will either be the state or the federal government bail them out or they will have to deal with reduced benefits in the future which will reduce the incentives of young people to join the government and also there will be reduced developmental projects and programs for the citizens in the local communities.