Detroit Mayor Dave Bing and members of the Detroit City Council provided the Snyder Administration with a counter-offer Wednesday to the proposed consent agreement released by the Governor. While the Governor remains in Europe on a trade mission, at least one member of his Administration has voiced optimism with regard to the participation of city officials.
State Treasurer Andy Dillon has indicated that he remains hopeful that the City and the State will be able to come to an agreement that prevents the necessity of an appointed emergency manager. He was also quick to point out that an emergency manager will be the only option if the courts prevent the financial review team assigned to the city from signing a consent agreement.
The City’s counter proposal calls for the State to provide better than $130 million in immediate funding to the City, to assist in the collection of taxes and to provide for the ability for the city to increase individual and corporate taxes. Additionally, while the Governor’s proposal transferred significant financial responsibilities to an appointed Financial Advisory Board, the City’s response provides for the Board to be advisory only.
The situation between the City and the State continues to develop despite the Governor’s overseas trip. Multiple rating agencies downgraded the City’s credit rating again this week as the result of anticipated cash shortfalls in the near term.