Bankruptcy case delays Detroit's usual budget process
Detroit’s bankruptcy case is throwing a wrench in the city’s usual budget process.
Detroit Mayor Mike Duggan didn’t give his charter-mandated city budget address as scheduled Monday.
Rather, officials told City Council members that Detroit needs to update its plan of adjustment first. That’s the city’s restructuring blueprint for getting through bankruptcy.
Detroit chief financial officer John Hill said that since the plan will shape the city budget, it doesn’t make sense start talking now.
“It’s clear that whatever comes out of this budget process has to mirror the plan of adjustment,” Hill said. “And that’s a process that’s ongoing, and will be ongoing for quite some time.”
Council President Brenda Jones agreed to postpone the Council’s usual budget hearings until at least the end of this month. Since the mayor's budget address is legally-mandated, she asked Emergency Manger Kevyn Orr to formally issue an order overriding that requirement.
Hill said a budget would be submitted to Council by May 9th at the latest.
He added that even if Orr controls the budget process right now, elected officials still have an important role to play.
“As we go through this process, I think it’s very important for us to have these discussions with the city council and the mayor, so that they do understand how we’re moving forward,” Hill said.
Orr reportedly plans to file the updated plan of adjustment within days.