Dave Bing

Both Detroit Mayor Dave Bing and the Detroit City Council have put forth proposals aimed at avoiding a state financial takeover.

A recent cash flow report suggests the city is likely to run out of cash by spring, and be $45 million in the red by the end of June 2012.

Bing, who announced 1000 city layoffs last week, issued more details of his proposal Tuesday. They include, in addition to the layoffs:

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.

There’s been a lot of speculation lately about the possibility of Detroit getting an emergency manager, something almost everybody concerned says they are against, but fear is likely to happen anyway.

If it does, the manager will have near-autocratic powers, including the right to suspend, rewrite, or tear up contracts. Some think this is a painful necessity, while others think it will be the death of democracy. There’s a possibility, however, which most people aren’t considering, which is that everything may be put on hold.

Detroit Mayor Dave Bing announced 1000 layoffs Friday.

Detroit faces a $45 million budget gap this fiscal year—and is poised to run out of cash by April.

Bing says the layoffs represent important savings—but they won’t close Detroit’s budget gap. He says city unions need to take a 10% pay cut.

“We have to talk to the union. If we don’t get concessions from the unions, none of the plans will work,” Bing said bluntly.

Bing gave the unions until Monday to agree, but talks between the two sides have gone nowhere.

Bing also insists he’s determined to go after tens of millions of dollars in revenue sharing the state owes Detroit from more than a decade ago.

“The state owes the city of Detroit $220 million,” Bing said. “I’m not afraid to ask for it, I’ve asked for it, I’m going after it.”

Republican leaders in Lansing have balked at Bing’s request.

Bing also says he won't submit the city's finances for a state review--something that Governor Snyder has said he "expected" Bing would do in light of Detroit's precarious situation.

Detroit Mayor Dave Bing made his long-anticipated speech this week addressing the city’s financial crisis. Even before that people were speculating as to whether the city would end up needing an emergency manager.

That speculation has increased ever since the mayor spoke, but the fact is this. There really isn’t any doubt. The city is not going to be able to succeed in righting its own finances, not under the Bing plan, anyway.

user: mimem / flickr.com

Republican state House Speaker Jase Bolger said Detroit should not anticipate more money from Michigan taxpayers to help fix the city’s financial troubles. Detroit Mayor Dave Bing said this week that Lansing should keep a promise made in the 1990s to boost revenue sharing payments if the city cut its income tax.

Bolger said that promise did not come from any Republicans currently serving in Lansing, where lawmakers have made tough choices to balance the state budget.

Detroit Mayor Dave Bing says 1,000 job cuts are planned by early next year to help deal with the city's budget crisis.

The mayor's office said in a statement Friday that layoff notices will be delivered the week of Dec. 5. He says the cuts represent 9 percent of the city's about 11,000 employees and will save about $12 million.

On Wednesday, Bing said the city faces a $45 million cash shortfall by the end of its fiscal year in June.

Bing said the positions will be eliminated by Feb. 25. He said additional 2,000 positions have been eliminated since he took office in 2009.

Bing also ordered an immediate hiring freeze for all civil service positions except the Detroit Water and Sewerage Department.

Critics and allies alike say Detroit Mayor Dave Bing's proposal to get the state to pay the city more than $200 million faces an uphill battle.

It’s one of the ideas the Mayor has outlined to keep the city from going broke.

In 1998, Detroit lowered its city income tax in exchange for guaranteed levels of state revenue sharing. But city officials say the state reneged, and shorted Detroit about $220 million it was promised.

Bing says that would be enough to erase the city’s structural deficit, and the $45-million shortfall the city expects this year.

Bernt Rostad / Flickr

Detroit Mayor Dave Bing addressed his city’s dire financial straits last night in a televised speech in which he said, “simply put, our city is in a financial crisis and city government is broken.”

“To avoid running out of money by spring, Bing says the city needs to do a whole range of things almost at once. They include increased health care and pension contributions for everyone, including retirees; and 10-percent wage cuts rather than furlough days for current employees. Bing says that needs to include the city’s public safety officers. Those departments eat up about 60% of Detroit’s budget. He adds the city needs to privatize some services—including public lighting, and to some extent its dysfunctional bus system,” Sarah Cwiek reports.

Cwiek was at the mayor’s address and says, “many think it’s only a matter of time before Detroit gets an emergency manager—and some, including Detroit City Council members, think the lack of specifics and deadlines in Bing’s speech made that even more likely.”

This morning, The Detroit Free Press had headlines that included an editorial titled, "Not good enough, Mr. Mayor," and a column by Stephen Henderson, "Numbers don't add up anywhere near city's needs."

Detroit Mayor Dave Bing says the city is on the verge of a financial calamity. But he insists that with tough choices all around, it can still avoid a state takeover.

Bing’s televised speech on city finances Wednesday night had a blunt message: “Simply put, our city is in a financial crisis and city government is broken.”

To avoid running out of money by spring, Bing says the city needs to do a whole range of things almost at once.

Detroit Mayor Dave Bing is addressing residents tonight about the city's financial troubles. And he answered one looming question right off the bat:

“Let me make one thing perfectly clear: I don’t want an emergency manager making decisions for my city,” Bing said.

He said his administration has eliminated 2,000 positions since he took office, but more needs to be done to keep the city out of receivership.

“I refuse to sugar-coat the situation or kick the can down the road, expecting someone else to fix our problems,” the mayor said.

Bing also said he won't allow the city's police and fire departments to be gutted. "I will not allow criminals free reign over our city," Bing said - but in the next breath added that officers and firefighters need to accept the same 10 percent pay cut other city employees have had to swallow.

Here's a link to the report the mayor's office commissioned that shows the city could run out of cash by spring.

Michigan Radio's Sarah Cwiek will have more details on Bing's speech tomorrow on Morning Edition.

Kate Davidson / Changing Gears

DETROIT (AP) - Detroit Mayor Dave Bing is planning to discuss the city's fiscal crisis and problems with its transportation and lighting systems.

The address to residents is scheduled for Wednesday evening at the Northwest Activities Center.

Bing recently said Detroit's continued financial struggles may require the intervention of an emergency financial manager and he would consider filling that role if asked by the governor. He's said the city faces a $150 million "cash shortage" by the end of the first quarter of 2012.

The mayor said in April that Detroit faced a possible state takeover if the city couldn't make improvements to its finances. A state law passed in March gives state-appointed financial managers more power when fixing the finances of municipalities and school districts.

Ifmuth / Flickr

Detroit will run out of money in the first half of next year unless the city cuts its budget, the Detroit Free Press is reporting. From the Freep:

A closely guarded report on Detroit's finances paints an alarming picture of a city that will run out of cash by April unless officials make immediate, painful reductions that will cut deeply in to public services. The report, obtained by the Free Press, outlines some drastic scenarios that illustrate how steep those cuts must be for the city to stay afloat…

The problems are so severe and immediate, restructuring experts said, that the state may have no choice but to appoint an emergency manager with the authority to gut union contracts, sell assets, restructure the government and end nonessential services.

“The mayor plans to speak Wednesday at 6 p.m.,” about the city’s financial situation, the Associated Press reports. As the AP notes, “It's possible that Detroit's poor health could lead to the appointment of an emergency manager with sweeping authority to make changes.”

Detroit Mayor Dave Bing made headlines and provoked cries of outrage yesterday with his pronouncement that the city might have to seek an emergency manager -- and, furthermore, that he might be willing to accept the job. Which is to say, that he wants it.

That outraged City Council president Charles Pugh, who posted this on Facebook, using many capital letters:

“The city of Detroit DOES NOT need an emergency manager. I don’t care WHAT Dave Bing says.”

user brother o'mara / Flickr

Detroit Mayor Bing says city might need emergency manager

In an interview with the Detroit News, Mayor Bing said the city is facing a coming budget crises, and if it comes down to the city being run by an emergency manager, he'd consider the job.

More from the Detroit News:

Mayor Dave Bing on Wednesday said Detroit is quickly running out of cash and may require the intervention of an emergency manager, a role he is seriously considering if the governor asks.

The mayor, in an interview Wednesday, said he is troubled by a confidential Ernst & Young financial report that shows the city could run out of money by February and the fact that employee unions have not been willing to come to the table to renegotiate their contracts.

Bing said he's "got to have a heart-to-heart" talk with himself because he's already overworked and rarely sees his family, but "tough decisions need to be made."

"I'm giving that serious thought," said Bing, who is more than two years into his first term. "With an emergency manager it gives you, I think, authority and leverage to do some of the things that need to be done.

 Michigan recovery second fastest, but outlook pessimistic  The state is on a path to recovery, but it's not necessarily a rosy path.  The Detroit News reports: 

Michigan's economy is recovering from the recession at the second-fastest pace in the U.S., lifted by reviving carmakers and local manufacturers, according to a new index of state growth.

The home of Motown was topped only by North Dakota, where an oil boom is raising incomes at the nation's quickest rate... [according to] the new Bloomberg Economic Evaluation of States Index...

"In a slow recovery like you have today, it doesn't take all that much growth to stand out," said Mark Vitner, an economist who works for Wells Fargo & Co. in Charlotte, North Carolina.

Michigan Radio's Rina Miller took a look at Michigan's seemingly mixed economic messages. She spoke with Bob Tomarelli, an analyst with IHS who said:

"So while they are getting a nice short-term burst that’s adding to payrolls and creating some jobs, or at least bringing some jobs back, it is not expected to keep up at that pace, and in the long run is actually expected to decline."

Anti-bullying measure passes Senate

The Michigan Senate passed an anti-bullying measure yesterday. More from Laura Weber of the Michigan Public Radio Network:

All school districts in Michigan may soon be required to adopt anti-bullying policies to help protect students from ridicule, humiliation and physical threats.

An anti-bullying bill approved by the state Senate would not, however, protect students from bullying done by teachers, school employees or parents.

The measure also does not protect students from cyber-bullying on home computers, nor does it list the traits or characteristics that are protected from bullying— such as gender, race or sexual orientation.

Sarah Hulett / Michigan Radio

James Hill lives in Detroit and uses the bus every day. And he says he’s learned to dedicate hours to getting from point A to point B.

People who need to catch the bus to work or school in Detroit are in a jam. On any given day, about half the city’s buses are parked, waiting for repairs. That, in turn, means hours-long waits at bus stops.

Hill said he took the bus to visit his son in the hospital a couple of weeks ago. He left the hospital at 4 o’clock in the afternoon…

Detroit Mayor Dave Bing will meet with City Council members behind closed doors Wednesday.

Among other things, they’ll discuss a confidential analysis detailing the city’s finances.

The analysis itself hints at cash flow problems for the city. Detroit is trying to work its way out from under a $155 million deficit.

Detroit Mayor Dave Bing says he’ll do “whatever it takes” to get the city out of its current bus crisis.

Pressure is mounting for Bing to do something about the problem, which has some city residents waiting more than three hours for busses. Bing admits that amounts to a “crisis.”

“As we look at people standing in line for two or three hours waiting for a bus…at children trying to get to school on time in the cold weather, waiting for a bus…if we look at people trying to get to their jobs on a daily basis waiting for a bus…that is unacceptable.”

State of Michigan

Michigan will get close $46.7 million for 16 transportation projects across the state. U.S. Transportation Secretary Ray LaHood in Dearborn today, where he announced the funding.

Governor Rick Snyder says he and Detroit Mayor Dave Bing will also head up a task force to try and break through a decades-old effort to create a regional transportation authority for southeast Michigan. Snyder says he wants to see quick action, "because we have a legacy here of planning too long and not acting enough.”

Right now, separate bus systems serve Detroit and the suburbs. Both systems face major budget troubles. DDOT, the system that serves Detroit, has cut routes, and riders have complained about hours-long waits. Meanwhile, the suburban system, SMART, just announced massive service cuts.

"I am hopeful in a short period of time we will have a solution or more than one option in terms of how we're going to deal with that problem," said Detroit Mayor Dave Bing.

Part of that solution will come in the form of help from the federal government, which has pledged $6 million for the city to purchase new busses. Bing says he's also hoping for concessions from the union that represents the city's bus drivers.

There appears to be no end in sight for frustrated bus riders in Detroit.

Budget cuts have forced Detroit to eliminate more than one-third of its citywide bus service over the past six years. But the city’s bus service has gotten dramatically worse in just the last few weeks. Many riders recount waiting up to three hours for buses to arrive--and finding severe overcrowding  once they do.

Kate Davidson / Michigan Radio

The city of Detroit is in the news very often and rarely with good news. Declines in population, and a troubled school district are just two of the stories that are plastered across newspapers and reported on in the national media.  At the same time, stories about young people and artists moving into the city have also gained national attention.

Michigan Radio's Jennifer White spoke with Mayor Bing about what he's doing to help brighten the city's future.

"The recurring story about the plight of Detroit is something that we are not going to fix overnight.”

Mayor Bing says, "Detroit is coming back." He adds new companies are moving into the downtown and midtown areas, and he says the Riverfront is a great asset. Bing also says there is too much focus on the negative. He hopes people will look at the positive things happening in the city, and he invites people to come see for themselves.

by nailhed / for Panoramio/Google

Detroit officials have announced a $20 million effort to clean up one of the city’s most notorious pieces of vacant land. They say it's only phase 1 of a plan to clean up the site on Detroit’s east riverfront that once housed a Uniroyal tire factory, and other heavy industry that contaminated the land. For years, those industries fought with the city and amongst themselves over who was responsible for the clean-up.

Sarah Cwiek / Michigan Radio

Federal, state, and local officials say they’re banding together to fight rising gun violence in Detroit. FBI Special Agent Andy Arena, Michigan Attorney General Bill Schuette, and Detroit Mayor Dave Bing are among those calling for a “holistic” approach to curbing crime. Arena says the FBI is pitching in by helping analyze Detroit’s crime data for trends and hotspots. But he says there are also deeper problems to address.

Detroit is expanding Project 14, a housing incentive program that initially targeted police officers, to all city employees.

It’s part of an effort to entice people to live where they work, and re-build Detroit’s population.

All Detroit city employees had to live in the city until state law overturned a residency requirement in 1999. That dealt a crushing blow to Detroit’s already-diminished tax base.

(photo by Steve Carmody/Michigan Radio)

Former Detroit Mayor Kwame Kilpatrick has been released from prison, Steve Carmody reports. "Kilpatrick walked out of the prison in Jackson and hugged his lawyer. He then got into a SUV waiting for him and the vehicle drove away," Carmody reports from Jackson.

Kilpatrick served 14 months for violating probation in a 2008 criminal case. From the Associated Press:

The 41-year-old Kilpatrick is free on parole but still faces a federal corruption trial that could send him back to prison. He plans to re-join his family in Texas.

Kilpatrick pleaded guilty to obstruction of justice and resigned from office in 2008 after he lied at a civil trial to cover up an extramarital affair with his chief of staff. That lawsuit cost Detroit $8.4 million.

He was imprisoned in May 2010 for failing to disclose assets and surrender sufficient funds that could have reduced his $1 million restitution to Detroit.

Nobody can dispute that Detroit doesn’t work very well anymore. There is vast poverty, unemployment, and blight. Plus a litany of other problems, most of which are well-known.

The question is, what do we do about them? What can anyone do about them? Within the last few years, the city has also been forced to face another unpleasant truth. There are too few people.

Too few, that is, for a city of Detroit’s physical size. You could tuck Manhattan and Boston within its borders and still have room left over. Once, Detroit was a bustling city of nearly two million people.

They weren’t packed together like sardines, but were spread out, largely in well-maintained single-family homes. That was sixty years ago, and pretty much everything is different now.

The census showed that there are barely seven hundred thousand people left. In some cases, one of two families remain on blocks otherwise filled with vacant or burned-down homes. There began to be talk about “shrinking” or “consolidating” the city.

People talked about ways to get people to move from the worst areas to more hopeful neighborhoods, to make it easier to provide city services. The mayor announced that his team would identify four to ten stable neighborhoods as part of a project he called “Detroit Works,” and then build up and further strengthen them.

This all made good, sound logical sense.

detroitworksproject.com

Detroit Mayor Dave Bing has unveiled a big part of his “Detroit Works” Project to strengthen city neighborhoods.

The strategy involves dividing neighborhoods into three categories: Steady, transitional, and distressed.

The city will focus on code enforcement and infrastructure improvement in the more viable areas, and on demolishing dangerous structures in more blighted ones.

Via detroitworksproject.com

The federal government is throwing its support behind Detroit Mayor Dave Bing’s Detroit Works Project. That’s a controversial effort to focus resources on Detroit’s more vibrant neighborhoods. It appeared to have stalled in recent months.

Bob Jagendorf / Flickr

The Obama administration today unveiled a federal program aimed at helping cities like Detroit revitalize parts of their urban core.

The Strong Cities, Strong Communities program will target Detroit, Fresno, Memphis, Cleveland, New Orleans, and Chester, Pa.

And in keeping with federal government style, officials have given the program an acronym, SC2.

U.S. Housing and Urban Development Secretary Shaun Donovan unveiled the program with Detroit Mayor Dave Bing this morning.

From a HUD press release:

"On behalf of the Obama Administration, it is an honor to announce the SC2 initiative in Detroit, one of America's most unique and vibrant cities," said U.S. Housing and Urban Development Secretary Shaun Donovan. "This will be a new type of federal partnership for Detroit - one that will allow the city to build on its progress and further strengthen its foundation for economic growth and resiliency in a global economy."

Officials say the program seeks to cut through federal red tape by providing communities with technical assistance to ensure federal and local dollars are spent wisely.

The Detroit City Council has approved a budget deal that promises to avert drastic cuts to police and fire, recreation and bus service.

The council voted to restore $25 million of the $50 million it cut from Mayor Dave Bing’s budget.

Bing says the vote is good news. But he says tough things are still in the city’s future.

Layoffs will be a reality, there’s no way around that, and with those layoffs there’s obviously going to be some service problems. So we’ve got to get better at servicing the citizens that are here, as well as the businesses that are here.

Two council members voted against the deal. They say they’re not convinced the mayor’s revenue projections will hold. And they say if they don’t, the budget will have to be revisited.

The new fiscal year starts tomorrow.

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