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Tue April 12, 2011
Detroit mayor warns a state takeover is "inevitable" without union concessions
Detroit’s mayor says the city’s unions will have to give big contract concessions or the city of Detroit may end up in the hands of a state appointed Emergency Financial Manager. Mayor Dave Bing outlined his budget plan to the city council this morning.
Bing says pension and health care costs threaten to force the city into insolvency.
“If we are unable or unwilling to make these changes, an Emergency Financial Manager will be appointed by the state to make them for us. It’s that simple.”
The city is facing a $155 million budget deficit. The mayor says that could grow to over a billion dollars in five years, unless deep cuts are made now.
Michigan’s new Emergency Financial Manager law gives the state appointed administrator broad powers to throw out union contracts and make budget decisions.