There is "downsizing" and there is "downsizing." It was not obvious from the article that appeared in The Detroit News electronic edition, just what the mayor meant.
Mayor Bing could have meant that Detroit government had to become smaller and more efficient. He could have meant that services had to become fewer and more selective. Or he could be recognizing that 800,000 people scattered among the remains of a city that expanded to hold 2,000,000 meant the city had to downsize geographically.