detroit budget

The week in Michigan politics

Jack Lessenberry, Christina Shockley and Emily Fox — Wed, 13 Feb 2013 13:42:20 +0000

In this week in Michigan politics, Michigan Radio’s Christina Shockley and Jack Lessenberry discuss the possibility for an emergency manager for Detroit, lawsuits against the state’s right to work law and funding for dredging the Great Lakes.

Lacking money and management, Detroit looks to "borrow" executives

Sarah Cwiek — Wed, 26 Dec 2012 23:05:55 +0000

Detroit mayor Dave Bing says the city might “borrow” personnel to replenish its management ranks.

Bing says Detroit is “very stretched, very light at the management level” right now. The city has hacked away at its management ranks to cut costs in recent years.

Officials have said that lack of expertise, especially at the middle management level, is now holding back the city’s effort to make structural reforms—but there’s no money to fix it.

But Bing says the city is trying to get help another way.

Snyder, Treasurer: Review should spur Detroit to move quickly to fix finances

Rick Pluta — Wed, 12 Dec 2012 21:44:35 +0000

Governor Rick Snyder says the Detroit mayor and city council are operating under some tight deadlines if they want to avoid a state takeover.

A formal state Treasury review of the city’s finances is underway.

Governor Snyder’s been critical of the slow pace and infighting that have delayed Detroit’s compliance with a consent agreement with the state.

Mayor Dave Bing and the city council took some actions this week, but the governor said things need to move more quickly.

State lawmaker says "dissolving Detroit" should be an option

Sarah Cwiek — Thu, 29 Nov 2012 00:13:08 +0000

Detroit is at a political impasse that could lead to a financial collapse next month.

Now, one state legislator is saying Lansing should consider “all its options”—including possibly dissolving the city as a municipality.

The idea of dissolving Detroit—and effectively merging it with Wayne County—has popped up occasionally in some business and political circles recently.

But mid-Michigan senator Rick Jones is the first official to publicly discuss that as an option.

Jones says Detroit’s local leaders just aren’t dealing with the city's fiscal problems—and having the state’s biggest city file for municipal bankruptcy would be “horrible.”

“I think everything is on the table,” Jones said. “ I would be willing to consider dissolving the city, if that’s what it took.

“One of the options could be actually dissolving the city of Detroit, and putting all of their functions back into Wayne County. That is possible.”

Still, Jones acknowledges this merger scenario is “unlikely.” He says the prevailing discussion in Lansing is about bankruptcy versus some kind of state intervention.

Lawmakers in Lansing are also considering passing a revised version of the emergency manager law voters overturned in November.

Detroit faces the possibility of running out of cash in mid-December.

Attempt to resolve Detroit cash crisis hits technical snag

Sarah Cwiek — Tue, 27 Nov 2012 00:49:25 +0000

Efforts to resolve a dispute that’s pushed Detroit to the brink of financial crisis flopped again on Monday.

Mayor Dave Bing called a special meeting with the City Council, hoping Council members would approve a contract with law firm Miller Canfield.

Lansing is sitting on $30 million in Detroit bond money because Council didn’t approve that contract, which was part of a “milestone agreement” between Bing and state officials.

Bing: Employee furloughs could get Detroit through cash crisis

Sarah Cwiek — Thu, 22 Nov 2012 03:26:47 +0000

Detroit mayor Dave Bing says he’ll resort to mandated employee furlough days before letting the city go broke.

The city is facing a likely $18 million cash shortfall next month. That’s despite having a consent agreement with the state that’s intended to avoid just such a crisis.

This week, the Detroit City Council voted down a contract with a law firm. That relatively small item was crucial to the city’s cash situation because it was part of a “milestone agreement” laying out conditions for releasing Detroit bond money the state is holding in escrow.

Bing says Council actions force cash crisis; Council disagrees

Sarah Cwiek — Wed, 21 Nov 2012 03:51:28 +0000

Detroit mayor Dave Bing says the Detroit City Council has pushed the city to the brink of another cash crisis.

The Council voted Tuesday to reject a contract with the law firm Miller-Canfield.

Bing maintains that approving that contract was part of a so-called “milestone agreement” with the state, which is holding $30 million Detroit bond money in escrow.

Union chief: Detroit Fire Department in 'utter chaos'

Sarah Cwiek — Fri, 06 Jul 2012 18:58:04 +0000

The head of Detroit’s firefighters union says the department is in “utter chaos” after new overtime restrictions came down this week.

City officials acknowledge the situation is difficult, but say it’s under control.

Union chief Dan McNamara says the drastic overtime restrictions—announced by memo to firefighters earlier this week--will basically cripple a fire department that’s already understaffed.

Detroit's neighborhood city halls likely to disappear

Sarah Cwiek — Tue, 01 May 2012 23:51:36 +0000

Detroit’s community access centers are one casualty of the city’s ongoing cost-cutting.

The centers, also known as neighborhood city halls, get no funds in Mayor Dave Bing’s proposed budget.

Their functions—like organizing the annual Angel’s Night and Motor City Makeover campaigns—will be shifted to neighborhood recreation centers.

But Detroit City Council members question how that transition will work without any funding. Bing’s proposed budget eliminates funding for several city departments.

Governor Snyder to propose consent agreement for Detroit

Sarah Cwiek — Mon, 12 Mar 2012 22:01:43 +0000

Governor Snyder will lay out details of a proposed consent agreement to members of the Detroit City Council on Tuesday.

Snyder and State Treasurer Andy Dillon, who leads the state review team looking at Detroit’s finances, have suggested a consent agreement for weeks.

That measure could give the city’s elected officials broad powers similar to those of an emergency manager.

Detroit Fire Department, already struggling, will have to "do more with less"

Sarah Cwiek — Mon, 05 Mar 2012 23:50:22 +0000

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.

Detroit Council seeks more details on union agreements

Sarah Cwiek — Wed, 22 Feb 2012 17:00:20 +0000

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.

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

Sarah Cwiek — Tue, 31 Jan 2012 22:55:29 +0000

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.

Report: Detroit could lose $8.5M in income tax

The Associated Press — Wed, 25 Jan 2012 12:53:00 +0000

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.

Facing emergency manager threat, Detroit officials struggle for a plan

Sarah Cwiek — Mon, 23 Jan 2012 02:12:16 +0000

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.