detroit budget

Politics
5:55 pm
Tue January 31, 2012

Deadline passes, and still no plan to keep an emergency manager out of Detroit

Detroit’s elected officials had hoped to resolve some big questions about the city’s financial future Tuesday.

But that didn’t happen.

Both Governor Snyder and Detroit Mayor Dave Bing say the only way for the city to avoid an emergency manager is to get big union concessions.

Bing had hoped to get those concessions by the end of January. But the self-imposed deadline came and went without a deal.

In the meantime, the Detroit City Council met to discuss drastic actions the city might have to take if no agreement materializes soon.

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Detroit Finances
7:53 am
Wed January 25, 2012

Report: Detroit could lose $8.5M in income tax

Ifmuth Flickr

A published report says state law requires the cash-strapped city of Detroit to cut its income tax rates starting July 1 unless the Legislature steps in.

The Detroit Free Press reports Wednesday the requirement is from a 1998 law that was part of a deal to preserve a state revenue-sharing payment and would total about $8.5 million.

The newspaper cited an analysis from the nonpartisan Citizens Research Council of Michigan.

Detroit sought a waiver from a state administrative board in December but was denied. Mayor Dave Bing says he will seek legislative help again because the city needs to keep "every
dollar" it can get.

A state-appointed review team is working to determine whether a financial emergency exists in Detroit, a step that could lead to an emergency manager.

Politics
9:12 pm
Sun January 22, 2012

Facing emergency manager threat, Detroit officials struggle for a plan

Detroit’s elected leaders are still struggling to come up with a unified plan to avoid a state takeover—even as a state review team continues work in the city.

The Detroit City Council has been critical of Mayor Dave Bing’s proposal to save more than $100 million this fiscal year to prevent the city from running out of cash.

Members suggest it contains too many optimistic revenue projections and unrealistic assumptions.

The Council has its own list of suggestions. But in the end, they can do little more than offer them to the Mayor.

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Politics
12:28 am
Thu December 15, 2011

Benton Harbor emergency manager “not surprised” at state’s review of Detroit's finances

Benton Harbor Emergency Manager Joe Harris explains parts of Michigan's emergency manager law at a monthly town hall meeting earlier this year.
Lindsey Smith Michigan Radio

A former long-time auditor for the City of Detroit says he’s not surprised the city is running out of cash. “I was a Detroiter, still am at heart, for 49 years,” Harris said. Joe Harris also served as Detroit’s auditor general from 1995 to 2005. He’s been the state-appointed emergency manager in Benton Harbor since March 2010.

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Politics
4:47 pm
Tue December 13, 2011

Detroit City Council rejects member's proposal to slash budget

The Detroit City Council has rejected one member’s efforts to slash its own budget.

Council President Pro Tem Gary Brown wanted to cut the council’s roughly $13 million budget by a third.

Brown says that’s the same level of concessions city unions are being asked for to avert a fiscal catastrophe in Detroit —and the council should lead by example.

“That’s $5 million the unions don’t have to look for, that we don’t have to ask the unions and the lower-wage city employees to come up with," Brown said. "I think that’s leadership.”

But most of Brown’s colleagues rejected the measure. They said 30 percent was an “excessive” cut that would damage the council’s ability to function.

Council member Ken Cockrel Jr. says the council has already cut its budget about that much over the past three years, and additional cuts could damage the council’s ability to do its job.

“What it really comes down to is, you can do cuts that are responsible for the sake of sharing the pain, or you can do cuts that are really all about trying to score political points,” Cockrel said.

Cockrel says if it wasn’t for Council’s diligence, the depth of the city’s fiscal crisis might never have come to light.

Members ultimately voted the measure down 6-2.

Politics
5:50 pm
Mon December 5, 2011

Detroit's cash crunch: Report highlights role of debt and legacy costs

user Urban Adventures Flickr

A recent report from the Citizens Research Council of Michigan highlights a sometimes overlooked part of Detroit’s current fiscal crisis: the city’s debt and legacy costs.

According to the report, Detroit has about $14 billion in liabilities (though about $5.2 billion of that is for the Detroit Water and Sewerage Department, and thus shared with its suburban customers).

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Politics
6:14 pm
Fri December 2, 2011

Organizers step up petition effort to repeal emergency manager law

PA 4 opponents rally in Detroit Friday
Sarah Cwiek Michigan Radio

Organizers behind a petition drive to repeal Michigan’s emergency manager law say they’re launching an all-out blitz for signatures.

Their campaign ramps ups just as the state starts the process that could lead to an emergency manager in Detroit.

Opponents of Public Act Four say it violates the Michigan and U.S. Constitutions by removing local elected officials from power. They also say it’s being used disproportionately to disenfranchise African American voters.

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Politics
8:21 pm
Thu December 1, 2011

Detroit leaders show united front, vow to work out city's fiscal problems on their own

user steveburt1947 Flickr

Detroit Mayor Dave Bing and other city leaders stood side-by-side at city hall Thursday night, saying they’re all ready to work together.

The show of unity comes as the city scrambles to stave off a state-appointed emergency manager. Governor Snyder has threatened to send in a financial review team that would initiate that process if the city doesn’t get its act together.

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Politics
6:34 pm
Tue November 22, 2011

Detroit Mayor, City Council issue proposals to keep city solvent

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:

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Politics
6:02 pm
Tue November 22, 2011

Detroit Congressman Clarke continues push for federal relief

Hansen Clarke

Detroit Congressman Hansen Clarke says “time is of the essence” for his proposed Detroit Jobs Trust Fund Act.

That’s legislation Clarke has proposed that would divert federal taxes collected in Detroit into a trust--about $2 billion annually over five years. That money would then be used to finance jobs and infrastructure projects.

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Politics
9:43 pm
Fri November 18, 2011

Detroit to cut 1,000 jobs

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.

Politics
10:23 pm
Thu November 17, 2011

Detroit Mayor's plea for payment gets cool reception in Lansing

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.

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Politics
10:17 pm
Wed November 16, 2011

Bing outlines dire financial picture for Detroit

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.

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Politics
12:12 pm
Wed October 26, 2011

Detroit Mayor, Council meet to discuss "confidential" memos

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.

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Politics
5:38 pm
Tue June 14, 2011

Detroit City Council responds to threatened service cuts

The Detroit City Council appears to be standing firm in an ongoing battle with Mayor Dave Bing over how much to cut from the city’s budget.

The Council wants to cut more from the budget than Bing to chip away at the city’s roughly $155 million accumulated deficit.

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Politics
4:52 pm
Mon June 13, 2011

Bing ups the ante in Detroit budget battle

Dave Bing
Kate Davidson Michigan Radio

Detroit Mayor Dave Bing has raised the stakes in his ongoing budget battle with the Detroit City Council.

Bing and the City Council have been sparring over how much to shave off the city’s budget. The Council wants to cut $50 million more than Bing.

Last week, the Council overrode Bing’s veto, meaning its budget is set to go into effect July 1.

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Politics
3:48 pm
Mon June 13, 2011

Detroit Mayor Bing says council's cuts could lead more people to leave city

Detroit Mayor Dave Bing delivering his budget address last April.
City of Detroit

The city of Detroit faces a projected $155 million budget shortfall in the coming fiscal year, so cuts are needed.

Mayor Bing's budget original budget proposal had $200 million in cuts.

Detroit city council presented a budget that went further, adding $50 million more in cuts.

Bing vetoed the council's budget, saying their cuts go too far. Here's a video of Bing, with a dramatic pause, signing the veto order:

The city council then voted 8-1 to override Bing's veto.

So that's where the city stands now.

Mayor Bing hopes council will reduce the amount of cuts by June 30th (the city's next fiscal year starts July 1).

If council doesn't compromise, Bing says drastic cuts will have to be made.

From the Associated Press:

Detroit Mayor Dave Bing says $50 million in city council-approved cuts to his $3.1 billion budget proposal will force him to close two recreation centers, two swimming pools, restrooms at city parks and the beach at Belle Isle... [and] some fire stations also could close and events at downtown's Hart Plaza could be shut down.

An article in the Detroit Free Press added some more cuts to this list:

If council doesn't withdrawal the reductions by the June 30 deadline, Bing said, he'd have no choice but to shut down the People Mover, eliminate 24-hour bus services, end sponsored events at Hart Plaza, close Belle Isle beach, shutter two recreation centers and cut police who patrol the streets, among other things, on July 1.

The cuts also would dampen chances of light rail along Woodward and hamper the police department's compliance with federal requirements to end brutality and civil rights violations.

Council Pro Tem Gary Brown is quoted as saying he won't entertain any last minute deals:

"Where is the sense of urgency?" Brown said, pointing to an accumulated deficit that he says could exceed $200 million this year. "We are in a crisis. All I hear is whining and crying about what the City Council is doing, instead of working to fix the problem."a

Mayor Bing said the "unprecedented" cuts and could lead to more people leaving the city of Detroit.

*correction - an earlier post incorrectly stated the override vote as 8-9. The vote was 8-1.

Politics
5:44 pm
Mon June 6, 2011

Detroit Council overrides Mayoral budget veto; Bing threatens layoffs

The Detroit City Council has voted to override Mayor Dave Bing’s budget.

The City Council added $50 million in additional cuts to Bing’s budget. By overriding his veto, they put those cuts into effect.

Bing blasted the Council afterward, saying the cuts will lead to public safety layoffs. He also says their action could move the city toward a takeover by an Emergency Manager.

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Politics
11:42 am
Wed June 1, 2011

Detroit mayor vetoes council budget

Detroit Mayor Dave Bing has vetoed the city council’s budget proposal for the fiscal year that begins July 1.

Detroit City Council trimmed an additional $50 million from the budget plan submitted by the mayor. Many members said they were not convinced the mayor’s revenue projections would hold.

Mayor Bing says the council’s plan would have resulted in layoffs in public safety, jeopardized Sunday bus service, and forced the city to return millions of dollars to the federal government. He says the council was bent on enacting drastic cuts to send a political message:

"But our fiscal crisis is too important to become just another political battle where no one wins."

The mayor and council members will spend the next few days on Mackinac Island for an annual policy conference hosted by the Detroit Regional Chamber. The island has been the site of many political deals in the past. But if a compromise is not struck, the city council could vote to override the veto next week.

Politics
9:16 pm
Tue May 31, 2011

Showdown looms over Detroit budget

The Detroit City Council has set up a meeting to override Mayor Dave Bing’s likely budget veto.

Bing said last week he’ll veto the Council’s budget proposal. He has until the end of this week to do so.

The two sides are at odds over the Council’s decision to cut an additional $50 million from Bing’s proposed budget.

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