Detroit City Council

Detroit Mayor Dave Bing
Mayor Dave Bing / Facebook.com

A board created to help Detroit Mayor Dave Bing repair the city's broken finances has approved his plan to make more than $100 million in cuts to the unionized workforce.

The Detroit News and Detroit Free Press report the financial advisory board took its first major steps toward restructuring the city's finances yesterday. The plan calls for putting in place savings that include a 10 percent wage cut and significant changes to health care and work rules.

Most are similar to tentative agreements reached earlier this year with unions.

The City Council is expected to consider the plan next week, but the financial board can implement the actions without council's approval.

The nine-member board was formed under a consent agreement between the city and state.

Paul Hitzelberger / United Photo Works

Detroit Mayor Dave Bing went to the Detroit City Council Friday to formally tell them he wants to get rid of the city’s top lawyer.

Instead, he walked out of an abruptly-recessed meeting he later called a “sideshow.”

Bing has been at odds with Detroit’s corporation counsel, Krystal Crittendon, for weeks now.

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Detroit Mayor Dave Bing and the City Council are sitting down this morning to discuss keeping the city afloat financially.

Bing and Detroit’s Chief Financial Officer have warned the city might run out of money by the end of this week.

When Detroit signed a consent agreement with the state more than two months ago, it was supposed to keep the city out of just this position.

But the city’s top lawyer, Krystal Crittendon, is challenging the deal’s validity in court.

She has support from several City Council members—and at one point, got encouragement from Bing.

Sarah Cwiek / Michigan Radio

Detroit Mayor Dave Bing and his Chief Financial Officer, Jack Martin, warn the city could go broke as soon as next week.

That’s because Detroit’s top lawyer, Kyrstal Crittendon, filed a lawsuit challenging the validity of the city’s consent agreement with the state.

Crittendon argues the agreement is “void and unenforceable” because the state owes the city money—and it’s illegal to enter into a contract with a debtor.

Two months ago, Detroit City Council agreed, at the last possible moment, to enter into a consent agreement with the state.

The city was fast running out of cash, and was facing a situation where the governor would virtually have been forced to appoint an emergency manager to run the city.

Detroit’s top lawyer is going to court to challenge the city’s consent agreement with the state. But she doesn’t have the full support of Mayor Dave Bing, or some Detroit City Council members.

Corporation counsel Krystal Crittendon wrote a letter to state officials weeks ago.

It looks like Detroit’s yearly budget process will get resolved without the squabbles that have plagued it in past years.

 

Mayor Dave Bing said Thursday he’ll sign the budget the Detroit City Council approved last week.

The Council made few changes to the budget plan Bing proposed back in April. It slashes nearly $250 million  from the city’s now roughly $1.1 billion budget.

A financial advisory board that will help guide Detroit’s budget process is expected to start meeting “soon”—but it will apparently be missing some of its members.

That Board is a key part of Detroit’s consent agreement with the state, and is supposed to have a prominent role in the city’s ongoing budget process.

Its nine members were to be appointed by state officials, Mayor Dave Bing—and the Detroit City Council.

The Detroit City Council approved a new budget for the next fiscal year on Thursday.

But the Council spent a lot more time talking about Detroit’s consent agreement with the state—and whether to challenge it in court—than about the budget.

The budget that Council approved by a 6-3 vote is pretty similar to the $1.1 billion plan Mayor Dave Bing’s office proposed in April.

The Council restored some money to the budget. But they mostly preserved the roughly $250 million in cuts the mayor proposed.

Another Detroit city department says it simply can’t function if proposed budget cuts go through.

The law department says “there is no way” the unit can run on what’s allotted in Mayor Dave Bing’s budget proposal.

Corporation Counsel Krystal Crittenden told the Detroit City Council the city’s new charter gives the law department new responsibilities.

Bing proposes slashing their budget by more than half. But the Council moved to restore most of that funding.

Max Ortiz / Associated Press

It’s all but official: Detroit and the state have struck a deal to avoid an emergency manager for the city.

In a contentious 5-4 vote, the City Council approved a consent agreement with the state. The narrow vote came after an emotionally-charged debate that sometimes erupted into hostility.

But everyone agreed on one point: the city of Detroit will never be the same.

Max Ortiz / Associated Press

The Detroit City Council has again delayed voting on a consent agreement that would stave off an emergency manager.

The Council spent most of Tuesday discussing several court challenges that could doom the agreement regardless of how they vote.

State officials had  hoped Monday would be the day the Detroit City Council finally approved a consent agreement with the state.

Instead, it started out with a contentious public hearing about union contracts, and ended in a confusing mess of court challenges—with no clear answer about how the whole process will go forward.

The day began with Deputy Mayor Kirk Lewis confirming he won’t ask the City Council to approve new labor contracts for city workers.

You may think I am pessimistic, but I have deep doubts about whether the governor’s proposal to save Detroit from an emergency manager will work. There are two main problems.

First, it isn’t clear that those supporting it can muster five votes on the nine-member council to approve it. Second, I am not sure it will work even if it is ratified. The structure is too complex.

At an open meeting of the financial review team in charge of evaluating the city of Detroit’s finances, protesters on Monday afternoon interrupted the meeting chanting, “No take over.”

The financial review team reaffirmed that a financial emergency does exist in the city and that a consent agreement was their preferred approach to fixing the city’s finances.

The city of Detroit and Michigan have yet to come to an agreement on how to stabilize the city’s finances.

The state review team looking at Detroit’s finances met again Wednesday, and formally declared the city to be in “severe financial distress.”

user PeRshGo / wikimedia commons

Legal wrangling over Public Act 4, Michigan’s emergency manager law, has put the state’s ability to work out a consent agreement with Detroit in jeopardy.

State leaders and some Detroit officials want to work out an agreement that would prevent the city from going broke in the next couple of months—without appointing an emergency manager.

Detroit Mayor Dave Bing has sent City Council members proposed language for a consent agreement, as time ticks down for them to counter a state proposal that would avoid an emergency manager.

Bing says his proposal gives Detroit “The appropriate tools to address the City’s financial crisis, and preserve the rights of Detroiters to be governed by the City’s elected officials.”

We’ve known for awhile that Detroit’s finances are reaching a crisis point. It’s believed the city could run out of money within the next few months. News broke yesterday evening that the Snyder Administration will try to remedy the situation. Governor Snyder will lay out details of a proposed consent agreement to members of the Detroit City Council today. A consent agreement would give the city’s elected officials broad powers… similar to those of an emergency manager.

A fight is brewing between the Detroit City Council, Mayor Dave Bing, and the state.

State officials say the Detroit Department of Human Services is so corrupt and incompetent it should no longer handle federal funds.

They want the Detroit City Council to agree to that. But the Council wants to hear more specifics—and a request from Mayor Dave Bing—before they act.

Detroit's Fire Commissioner says his department is at the end of its resources due to budget cuts.

Donald Austin spoke to a Detroit City Council committee meeting on Monday.

Even with the cuts, Detroit’s Police and Fire Departments take up well over half of the city's budget. And both departments regularly go over-budget, mostly because of overtime.

Austin says it’s proven almost impossible to cut overtime, when he has to fight so many fires in vacant buildings--which total 30-60% of all department runs, depending on the shift.

Members of the Detroit City Council want more answers about how the city will avoid running out of cash.

Mayor Dave Bing hammered out tentative agreements with most city employee unions, including police and firefighters. They worked as a state review team continues to pore over Detroit's finances, as part of the process that could lead to the state appointing an emergency manager for the city.

The Detroit City Council has approved a map that will be used to guide future Council elections.

The map divides the city into seven districts. Starting next year, Detroit will elect their Council members by district. Currently, all nine members are elected at large.

The Council chose “Option 3,” one of the four options the city’s Planning Commission created for them to choose from.

The non-profit group Data Driven Detroit has released its own map suggesting how to divide the city into districts.

Detroit voters have chosen to elect seven of nine City Council members by district, rather than the present "at-large" system.

The City Planning Commission gave the Council four possible maps to consider.

But the non-profit group Data Driven Detroit has reviewed the data, and produced its own plan—one they’re calling “Option 5.”

Detroit officials are fast-tracking a process to change the way Council members represent the city.

Detroit voters approved a plan in November to elect seven of nine City Council members by district, when they approved a new city charter. Currently, all nine members represent the city at-large.

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.

Ifmuth / Flickr

The Detroit City Council has scheduled a discussion of Mayor Dave Bing's budget reduction plan. It's set for Thursday afternoon.

A review team is looking into Detroit's finances - a step in a process that could lead to Michigan taking over the city's government. Its recommendations will be forwarded to Gov. Rick Snyder.

A preliminary review determined there was "probable financial stress" in city government and that Detroit faces a general fund deficit of about $200 million. Auditors say Detroit may run out of money as early as April.

Bing, the council and city labor union leaders have been collaborating to convince the state that an emergency manager is unneeded.

Bing has said he'll cut 1,000 jobs early this year to save about $14 million.

Courtesy of Detroit City Council website

The state Department of Treasury continues its review of the City of Detroit’s finances.

While Governor Rick Snyder insists he doesn’t want to see Detroit under and emergency manager…the city doesn’t seem to be making much headway in fixing its financial issues.

Detroit City Council President Pro Tem, Gary Brown has some ideas on how the city can save money and cut spending. He spoke with Michigan Radio's Jennifer White.

 

Yesterday, Detroit City Council sent a clear signal to Governor Rick Snyder and the rest of the state. By their actions, they said “we need you to send in an Emergency Manager and strip us of all financial power. You have to do this, because we are psychologically incapable of seriously addressing our financial problems.”

They would indignantly deny what I just said, of course. Barely a week ago, they huddled around a microphone with Mayor Dave Bing, and defiantly agreed they didn’t need outside help.

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.

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