Detroit city council unveils its cost-saving plans, calls for tax increase

Nov 21, 2011

Detroit is running out of money.

Last week, the mayor outlined some of his money saving ideas.

It's a plan that some on Detroit's city council said didn't go far enough.

Now, Detroit City Council is unveiling their plan.

The Detroit Free Press reports that the council's plan is a "is a last-ditch effort to avoid an emergency manager as the city faces the prospect of running out of cash by April..."

The Freep reports the council's plan would increase income taxes on Detroit residents from 2.5 percent to 3 percent, and nonresidents from 1.5 percent to 2 percent:

More from the Detroit Free Press:

As the city nears insolvency, Detroit City Council unveiled a rescue plan today that would increase income taxes by .5% on residents and nonresidents, lay off hundreds of firefighters and police officers and outsource ownership of the ailing busing system.

Other proposals include:

•Sharing health department services with a hospital or Wayne County.

•Cutting up to 2,300 workers.

•Eliminating subsidies to the Detroit Zoo, Detroit Economic Growth Corporation, Eastern Market, the Detroit Institute of the Arts and Charles H. Wright Museum of African American History Museum.

•Demanding the Detroit Public School System pay its $15 million electric bill due to the city.

 

Some Council members have also floated the idea of a possible consent agreement, that would allow them to bypass the Mayor and implement the deeper cuts.

That would essentially give the Council most of the powers of an emergency manager, without stripping power from elected officials. It would require state approval.