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Thu May 31, 2012
AUDIO: No budget battle, Detroit Mayor Bing says yes to $250 million in cuts
At a press conference this morning, Detroit Mayor Bing said he'll approve Detroit City Council's budget.
Here's Bing making the announcement at the Mackinac Policy Conference this morning:
Bing's announcement means the typical high-stakes budget battles seen between executive and legislative branches of government won't happen in Detroit this year.
Suzette Hackney of the Detroit Free Press reports:
For the first time in recent history, Detroit's executive and legislative branches of government quashed potential squabbles over the city's budget and agreed to make $250 million in cuts in an effort to steer Detroit back toward fiscal stability.Detroit Mayor Dave Bing this morning said he intends Friday to formally adopt the budget, which contains key public lighting, transportation and public safety initiatives...
The 2012-13 fiscal year begins July 1. This budget is the first under a consent agreement that gives the state significant oversight into Detroit's finances. The $1.12-billion spending plan calls for Detroit's human services department to be eliminated, the transportation and lighting departments will be privatized, and 2,600 jobs will be cut.
The budget reduces the city's general fund by $246 million -- a $171-million spending reduction and $75 million to go toward paying down an accumulated deficit.
Detroit's budget must also be approved by a "financial advisory board" which was set up under a consent agreement with the state. The seats on the nine-member board are still being filled.