Detroit consent agreement

Politics
6:29 pm
Thu May 31, 2012

Detroit Mayor Dave Bing says new budget will "restore fiscal stability to Detroit"

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.

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Politics
10:38 am
Thu May 31, 2012

AUDIO: No budget battle, Detroit Mayor Bing says yes to $250 million in cuts

Detroit Mayor Dave Bing.
Kate Davidson Michigan Radio

At a press conference this morning, Detroit Mayor Bing said he'll approve Detroit City Council's budget.

Here's Bing making the announcement at the Mackinac Policy Conference this morning:

Bing's announcement means the typical high-stakes budget battles seen between executive and legislative branches of government won't happen in Detroit this year.

Suzette Hackney of the Detroit Free Press reports:

For the first time in recent history, Detroit's executive and legislative branches of government quashed potential squabbles over the city's budget and agreed to make $250 million in cuts in an effort to steer Detroit back toward fiscal stability.Detroit Mayor Dave Bing this morning said he intends Friday to formally adopt the budget, which contains key public lighting, transportation and public safety initiatives...

The 2012-13 fiscal year begins July 1. This budget is the first under a consent agreement that gives the state significant oversight into Detroit's finances. The $1.12-billion spending plan calls for Detroit's human services department to be eliminated, the transportation and lighting departments will be privatized, and 2,600 jobs will be cut.

The budget reduces the city's general fund by $246 million -- a $171-million spending reduction and $75 million to go toward paying down an accumulated deficit.

Detroit's budget must also be approved by a "financial advisory board" which was set up under a consent agreement with the state. The seats on the nine-member board are still being filled.

Politics
5:12 pm
Sun May 27, 2012

Detroit's Financial Advisory Board, still missing some members, might start meeting anyway

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.

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Politics
9:17 pm
Thu May 24, 2012

Detroit City Council approves new budget, continues to argue over consent agreement

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.

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Politics
6:10 pm
Thu May 17, 2012

Governor Snyder, Mayor Bing dismiss letter calling Detroit consent agreement "null and void"

Detroit’s top lawyer says the city’s consent agreement with the state isn’t legally binding.

Corporation counsel Krystal Crittenden sent a letter to Governor Snyder’s office calling the agreement “void and unenforceable.”

The letter cites money the state owes the city—and says Detroit’s charter forbids it from entering into agreements with debtors.

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Politics
8:46 pm
Wed May 16, 2012

Detroit budget process churns on with Law, Health Department talks

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.

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Politics
3:27 pm
Thu May 10, 2012

New CFO in Detroit leads to new emergency manager for Highland Park Schools

There's some job switching going on today in Michigan as Highland Park Schools emergency manager Jack Martin got the nod to become the new chief financial officer for the City of Detroit.

The CFO position was created as part of the city's consent agreement with the state. Jack Martin has been the EM at Highland Park Schools since last February.

Martin is a certified public accountant and was the CFO for the U.S. Department of Education from January 2002 through December 2005.

Martin's move to Detroit left the EM position at Highland Park Schools open which will now be filled by Joyce Parker. She's the current emergency manager for the city of Ecorse. She'll continue on in that role part-time, according to the Michigan Department of Treasury.

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Politics
5:35 pm
Wed May 9, 2012

Detroit union asks feds to withhold transit money

A union that represents some Detroit transit workers is asking the U.S. Department of Labor to withhold federal transit money from the city. In a letter to labor secretary Hilda Solis, the union says the money should be withheld until Detroit and the state get rid of a provision in a recent consent agreement that suspends collective bargaining requirements. 

Attorney George Washington represents AFSCME Local 312. He says the Urban Mass Transit Act spells out that the preservation of transit employees' collective bargaining rights is a condition for getting federal mass transit money.

Washington says that flies in the face of the consent agreement Detroit recently entered with the state. That agreement lays out a series of conditions the city is expected to impose unilaterally by July 16.  

"Nobody has talked with the union about any of that, and there's no bargaining going on. They're just trying to issue orders and dictates," said Washington.

In a statement, Michigan Treasury spokesman Terry Stanton said this:

"It is unfortunate that, at a time when the city and state are working collaboratively to address the city’s financial crisis and delivery of key services, some are willing to take actions that promise only to further erode the city’s bus service and, perhaps more critically, its fiscal condition."

Politics
10:19 am
Mon May 7, 2012

In this morning's news...

Morning News Roundup, Wednesday, May 2nd
Brother O'Mara Flickr

State could be forced to pay new Detroit officials' salaries

Under the consent agreement with the state, the city of Detroit will have to appoint new officials to lead the city out of its financial crisis. Who will pay the salaries for these new officials is a new bone of contention according to Jonathan Oosting at MLive:

The [consent] agreement... requires the formation of a nine-member Financial Advisory Board to oversee city budgets and hiring of a Program Management Director to oversee implementation of key initiatives.

The deal calls for the city and state to split the salaries of advisory board members, who each will make $25,000 a year, while the city is required to cover the full salary of the PMD, expected to earn triple figures.

As MLive.com first reported this weekend, some city leaders believe the state may end up assuming full responsibility for those costs.

Some council members feel the Headlee Act prevents the state from mandating new services without compensating the city for those services.

Oosting reports Detroit City Council is expected to meet in a closed door session with the city's law department this afternoon.

U.S. Attorney General says violence in Detroit is "unacceptable"

U.S. Attorney General Eric Holder told thousands of people gathered at an NAACP fundraising dinner that violence in Detroit is "unacceptable."

He told the crowd last night in Detroit that his administration is directing "unprecedented" resources nationally in order to reduce young people's exposure to crime.

Holder said an average of two young black men get killed each week in Detroit. He called the statistic "shocking."

Higher train speeds between Detroit and Chicago

U.S. Transportation Secretary Ray LaHood says Michigan, Illinois and Indiana are each contributing $200,000 for a study looking into the creation of a high-speed rail corridor between Chicago and Detroit.

LaHood says the study will seek ways to cut Amtrak passenger train times between the cities and to more efficiently move goods.

The Department of Transportation says the study will build on the progress that Michigan has made in achieving 110 mile per hour service between Kalamazoo and Porter, Indiana.

Politics
9:54 pm
Fri May 4, 2012

Detroit City Clerk: Budget cuts "don't make sense," would compromise elections

Detroit City Clerk Janice Winfrey
Michigan Municipal League Flickr

Detroit’s City Clerk says budget cuts would compromise her ability to run elections.

Janice Winfrey took her case to the Detroit City Council Friday.

Detroit Mayor Dave Bing wants to cut the election department's budget by 25%, from $7.4 million to $5 million.

Bing says that’s part of across-the-board cuts that need to happen as the city grapples with state mandates to reduce its deficit--outlined in the consent agreement between the city and state.

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Politics
10:36 pm
Wed May 2, 2012

Detroit City Council works to fill financial advisory board

The Detroit City Council is interviewing candidates for the city’s new financial advisory board this week.

The nine-member financial advisory board is a requirement outlined in Detroit’s consent agreement with the state.

The City Council gets to appoint two members, and approve the rest, who are appointed by the Governor, State Treasurer, and Mayor.

On Wednesday, the Council interviewed Mary Beth Kuderik, Chief Financial Officer for the UAW Retiree Benefits Trust.

Council members seemed keenly interested in Kuderik’s record managing health care costs—one of the city’s biggest long-term expenditures.

Kuderik says she thinks the city could save a lot of money in health care costs.

“My sense is that there would be opportunity for savings, even in terms of cash flow,” she said.”

Council President Pro-Tem Gary Brown cautioned it won’t be a part-time job to start.

“There is so much information that you have to be brought up to speed on, to understand how the city operates, that I really do see it being a full-time job for 30-45 days,” Brown said.

The Council has until May 10th to finalize the board.

So far, only one advisory board appointee lives in Detroit. That’s a concern to some Council members.

Several Council members have said qualified city residents they’ve approached have declined interviews, saying the issue is too contentious.

Politics
12:26 pm
Wed May 2, 2012

Detroit unions weigh strike option as layoffs loom

wikimedia commons

DETROIT (AP) - Some Detroit municipal union leaders say striking is one of several options being discussed during ramped-up strategy sessions before new contract talks with the city begin.

American Federation of State, County & Municipal Employees Council 25 spokesman Ed McNeil says no strike vote has been taken "at this point."

McNeil said "people are looking at the system itself and are pretty disgusted with the city."

Union strategy sessions have become more agitated since Mayor Dave Bing and Gov. Rick Snyder approved a consent agreement that avoided appointment of an emergency manager in Detroit but now calls for steeper benefit cuts and more work rules concessions.

Detroit has an accumulated budget deficit of $265 million. Bing wants to cut more than 2,500 jobs and shave $250 million in annual expenses.

News Roundup
10:23 am
Mon April 30, 2012

In this morning's news...

Morning News Roundup, Thursday, April 26th, 2012
Brother O'Mara Flickr

Detroit Mayor Dave Bing returns to work today

Mr. Bing is expected back at city hall following his recovery from pulmonary embolisms in both lungs. Bing had an
operation in late March for a perforated colon, then returned to the hospital earlier this month after doctors discovered the blood clots in his lungs - a potentially life-threatening condition.

Bing, 68, was away for much of the drama surrounding the city's consent agreement vote with the state, but Deputy Mayor Kirk Lewis said Bing was continually informed and was providing his input into the process. From the Detroit News:

In a conference call with reporters 10 days ago, Bing said he was fully engaged in the process of hiring a chief financial officer as well as appointing members to the financial advisory board that will oversee the city's fiscal restructuring.

In that phone interview with reporters, Bing said he would start slowly and not work full days until his health is 100 percent.

Appointments to Detroit's financial oversight board continue

Five have been appointed to the nine-member financial advisory board - four more appointments are left.

The Detroit Free Press reports Detroit City Council will interview candidates today:

The council will interview candidates at 2:30 p.m. today and at 1 p.m. Tuesday at council chambers on the 13th floor of the Coleman A. Young Municipal Center.

"It will be a world-class board," council President Pro Tem Gary Brown, who is heading up the selection process for the council, said last week. "I've seen all the candidates, and people will be pleased with the level of competency on this board."

Council President Charles Pugh said the council could vote on its selections as early as Friday.

The financial advisory board will have oversight over the city's finances. Each member will be given $25,000 in annual compensation for their service on the board.

Number of low-birth weight babies increasing in Michigan

The Michigan League for Human Services’ Kids Count in Michigan report released today says the number of low-birth weight babies and babies born to unwed women is increasing, according to the Lansing State Journal.

The Journal reports that the authors of the report call for funding to implement changes from a state infant mortality summit.

The report says the 10 counties with the best health indicators for mothers and children are Houghton, Ottawa, Livingston, Leelanau, Midland, Grand Traverse, Oakland, Emmet, Clinton and Washtenaw.

The 10 worst are Berrien, Calhoun, Alcona, Genesee, Clare, Lake, Saginaw, Wayne, Crawford and Luce.

Politics
9:32 am
Wed April 25, 2012

Detroit City Council member: I've received death threats after consent deal vote

Detroit City Council member Saunteel Jenkins.

People in public life are in the spotlight, and are often the target of people's vitriol when they make unpopular decisions.

It's no different in Detroit.

Councilwoman Saunteel Jenkins told WWJ she's received death threats after her vote to approve a consent agreement with the state earlier this month.

From WWJ:

“I’ve received some threats, yes,” said Jenkins. ”It’s especially unnerving when in addition to threats, people are picketing at your private home.”

Jenkins said it’s all over her “yes” vote supporting the consent agreement. While things haven’t escalated to violence, Jenkins has had to ask for police protection at least once...

Jenkins said when she ran for a seat on City Council, she had no idea how difficult it would be.

“I had no idea, but I keep saying, you can’t complain when you get what you asked for. I asked for this, but I had no idea. I knew it would be rough, but I didn’t know it would be this rough,” she said.

Jenkins told WWJ that other council members have also received threats - she didn't identify their names.

Commentary
11:23 am
Tue April 24, 2012

Commentary: What do huge spending cuts mean for Detroit?

Detroit, as you probably know, is trying desperately to avoid emergency manager status, bankruptcy, or both.

Governor Rick Snyder isn’t the most popular figure in Motown these days, but he is on the same page with city leaders on that, which is why he helped craft the so-called consent agreement.

The mechanics of it are still being worked out. But yesterday, Mayor Dave Bing proposed a new city budget that was almost frightening in terms of its austerity, and depressing when you think of the services this once-great city used to provide.

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Detroit
4:09 pm
Fri April 20, 2012

Detroit Mayor Bing says he'll be back in the office by end of the month

Detroit Mayor Dave Bing.
Dave Hogg Flickr

DETROIT (AP) - Detroit Mayor Dave Bing says he's at least 80 percent healed from major surgery and plans to return to city hall on April 30.

Bing had surgery for a perforated intestine in late March and then returned to the hospital on April 4 because of blood clots in his lungs. His health problems occurred while the city and the state of Michigan were working on an extraordinary deal to fix Detroit's finances.

The 68-year-old mayor said during a conference call Friday the only thing holding him back is the healing of his incision. Bing says he lost 12 pounds because of restrictions on what he could eat.

A deal between Detroit and the state calls for a chief financial officer, a program manager and a nine-member board to oversee spending.

Politics
9:33 am
Fri April 20, 2012

Michigan's high court says "no" to review of Detroit consent deal

The Michigan Hall of Justice, home to Michigan's Supreme Court.
michiganradio.org

Earlier this month, some opposed to the state's efforts to enter into a consent agreement with Detroit tried to stop the process from going forward - arguing in front of an Ingham County judge that the state did not comply with Michigan's Open Meetings Act.

The judge agreed and ordered a halt to the process, but in an appeal by the state the Michigan Court of Appeals put a stay on the judge's decision.

Union activist and Highland Park school board member Robert Davis appealed all the way to the Michigan Supreme Court.

Today, the Michigan Supreme Court said it won't take up Davis' appeal.

The Associated Press reports "in an order dated Friday that it wasn't persuaded that the questions presented should be reviewed."

Robert Davis is the Highland Park school board member who is currently under a federal indictment for stealing funds from Highland Park schools. He says he will fight the charges.

Politics
1:46 pm
Thu April 19, 2012

First three appointments made to Detroit's "Financial Advisory Board"

Laughlin Elkind Flickr

The consent agreement the city of Detroit signed with the state earlier this month calls for the creation of a nine-member financial advisory board.

The board will have oversight over the city's finances.

Governor Snyder's office released the names of the three members appointed to the board today:

Former state Treasurer Robert Bowman, currently president and CEO of Major League Baseball Advanced Media LP, is the joint appointee of Snyder and Bing. Darrell Burks, currently a senior partner at PricewaterhouseCoopers, will be one of three individuals appointed by Gov. Snyder, and Ken Whipple, chairman of the board of Korn/Ferry International, is Treasurer Dillon’s appointee to the FAB.

Forbes has a profile of Robert Bowman.

Three are appointed - six more appointments are left.

Under the agreement, Gov. Snyder will select two more members of the board, Mayor Bing will select two, and Detroit City Council will select two.

Those serving on the board will receive compensation of $25,000 per year.

Detroit Deputy Mayor Kirk Lewis—who’s still serving in place of the ailing Mayor Bing—says the city is moving to comply with the consent agreement.

 “So we’re making progress," Lewis told reporters Thursday. "I’d expect over the next couple of weeks we’ll have that [advisory board] taken care of.”

Lewis says after that, city and state officials will move on to filling two more powerful positions outlined in the agreement: a Chief Financial Officer, and a Program Director.

He also says Bing is slated to return to work part-time in “a couple of weeks.”

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Politics
2:41 pm
Thu April 12, 2012

Detroit faces big cuts in proposed budget from mayor's office

Bob Jagendorf Flickr

The Detroit Free Press reports police and firefighters face a 10 percent wage cut, and the Department of Transportation in Detroit could be cut by $10 million under a proposed $1.2 billion budget presented to City Council by Deputy Mayor Kirk Lewis today.

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Detroit
6:45 am
Thu April 12, 2012

Mayor's office to present budget to City Council

Ifmuth Flickr

Detroit Mayor Dave Bing's office is presenting the city's 2012-13 fiscal year budget to the City Council. The presentation is planned for 11 a.m. Thursday.

The annual budget process comes about a week after Bing, the council and Gov. Rick Snyder's office agreed for Michigan to have a role in fixing Detroit's $200 million budget deficit and long-term fiscal restructuring.

Deputy Mayor Kirk Lewis said this week that the city is "nowhere near where" it "needs to be" in the budget process due to the time spent negotiating the agreement with Snyder.

A financial advisory board called for under the deal is expected to have little input on the upcoming budget. It will make recommendations to the mayor and help the city when Detroit begins preparations for 3-year budgets.

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