Bing Delivers Plan For Detroit - Snyder Eyes Emergency Manager

Detroit Mayor David Bing delivered his much-anticipated plan for avoiding a fiscal emergency in the City of Detroit Wednesday as the City inches closer to going empty on the cash necessary to meet employee payroll and other obligations come April. The Mayor called for Detroit firefighters and police officers to take the same 10 percent cut in pay already imposed on other city workers, a 10 percent increase in employee contributions to healthcare insurance plans, some layoffs and a potential privatization of maintenance of the Detroit Department of Transportation (DDOT) and the Public Lighting Department. Additionally, Mr. Bing stated he would seek a small increase in the City’s corporate income tax.

Most significantly, Mayor Bing called upon Michigan Governor Rick Snyder and the Michigan Legislature to send Detroit the $220 million in revenue sharing money the Mayor claims was part of a 1998 agreement between then Governor John Engler and former Detroit Mayor Dennis Archer.

While Mayor Bing clearly stated multiple times that he was proposing the changes to lead the City out of fiscal distress and to avoid the Governor appointing an emergency manager under Public Act 4, the Governor indicated he expected to begin a preliminary financial review shortly. The appointment of a committee to conduct this review is the first step towards the appointment of an emergency manager.

posted by PAA Online , Friday, November 18, 2011 12:04 PM
LINK DIRECTLY TO THIS ARTICLE

This Week's Newsletter

Past Newsletters