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.
Detroit Mayor Dave Bing says he'll veto the city council's budget bill. The council budget cuts spending by $50 million dollars more than the mayor wants.
Detroit City Council voted 8-1 in favor of their plan. But Mayor Bing says adoption of his $3.1 billion dollar budget is crucial if Detroit is to avoid having Governor Rick Snyder step in and appoint an emergency manager to steer the city out of a $155 million dollar deficit.
Detroit Mayor Dave Bing has suspended the director and several staff of the city’s Human Services Department. The department is believed to have misspent at least $200,000 intended for services to the poor.
Mayor Bing says an investigation is under way. He says it’s not clear yet how big the problem is, "but it is important enough to this administration, to this city and our indigent population that we act immediately to make sure that we right the wrongs."
Budget hearings continue today in Detroit. The Detroit City Council’s budget, finance and audit standing committee will discuss the city's Finance Department budget later this afternoon, the Associated Press reports. From the AP:
The Detroit City Council is continuing hearings on Mayor Dave Bing's proposed 2011-12 budget…
Bing presented his proposed $3.1 billion budget to the council last month. He says the city faces a $155 million deficit that could swell in several years unless there are more cuts, and payments to two city pensions and health care expenses are reduced.
Bing met Monday with union leadership where he detailed needed concessions to help cut into the deficit.
The council is expected to make recommendations or changes to Bing's proposal. The new fiscal year begins July 1.
Detroit Mayor Dave Bing says the city is at a tipping point and could be assigned an emergency manager if the state doesn’t let it extend income and utility taxes.
Bing met privately with Governor Rick Snyder and lawmakers today.
He says if the state does not allow Detroit to extend taxes, the city will lose about $100 million in revenue:
"Then I think we’re looking at an emergency financial manager," said Bing, "and I don’t think the state wants to go in that route, nor do we. So we need the support from the Legislature up here to make sure they make the necessary changes to give us the support that we need."
Bing needs legislation for the tax extension because of Detroit’s massive population loss. That drop disqualified the city from laws written for the state’s largest city.
Bing also wants Detroit’s 48 unions to make large concessions to help close a $200 million deficit.
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