Another aspect is sprawl really that leads to the issues other mentioned. Since the US has loads of sprawl it's just to expensive to maintain all of the suburbs, in fact it's really only because of federal funding that a lot of sprawl isn't insolvent yet because spreading out utilities and roads over wide areas with such a low tax base is a fundamentally unsustainable venture. Eventually, you'll find pockets that just don't have the money and see issues like Flint and now Jackson.
The original story of lack of funds due to people leaving was debunked when Corps cleaned intake filters and found the start button, all within a couple days. Maybe the $1B emergency was on purpose or just incompetence.