Tagged: Detroit financial crisis

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.

The process leading to the selection of a nine-person financial review board to help Detroit monitor its finances and set budget revenue projections has started, even as some community leaders question whether the mayor and City Council too easily gave up control of the city to Gov. Rick Snyder.

Detroit NAACP President Wendell Anthony told Deputy Mayor Kirk Lewis during a forum Tuesday that city residents want to be a partner with the state, but "don't want to surrender who we are."

The agreement is aimed at turning around Detroit's finances while preventing the appointment of an emergency manager who would have had the authority to dismiss elected leaders. The deal includes forming a financial review board.

Lewis said names are currently being vetted for possible selection to the board.

"Opening Day" for Detroit

In a media roundtable in Detroit yesterday, State Treasurer Andy Dillon compared the day after Detroit City Council approved a consent agreement with the state with the home opener for the Detroit Tigers taking place nearby, "This is opening day in more ways than one for the city of Detroit," he said.

The next order of business for the city is to fill new positions called for the in the consent agreement. From the Detroit Free Press:

Mayor Dave Bing now has six days to create the positions of the city's chief financial officer and program management director and 30 days after that to hire the people for the positions... At the same time the state and city are compiling the list for the two top positions, they'll be developing a file of candidates to fill the nine-member financial advisory board, a team of people also with financial backgrounds, who will wield significant power as the city tries to right its finances.

Mayor Bing suffering from two "acute pulmonary embolisms"

Bing returned to the hospital on Wednesday. Yesterday afternoon his office released a statement saying the Mayor was diagnosed with acute pulmonary embolisms in both lungs. A condition that could be life threatening, but his doctor at Henry Ford Hospital said he's recuperating well. Deputy Mayor Kirk Lewis has been acting on the Mayor's behalf. Michigan Radio's Sarah Cwiek reported that Lewis said Mayor Bing "is alert and very involved in the ongoing process to implement the city’s new deal with the state."

“I’m just standing in his shoes right now, until he recovers. But Mayor Dave Bing is clearly the mayor and will be the mayor,” Lewis told reporters Thursday.

Highland Park School Board member calls charges against him "quite suspicious"

Highland Park School Board member and union activist Robert Davis was indicted yesterday on charges of theft by federal prosecutors. They've accused Davis of stealing more than $125,000 from the ailing school district.

Davis successfully won a court battle against the state's financial review teams for violating the Open Meetings Act. At a news conference held last night in his attorney's office, Davis called the timing of the indictment "quite suspicious."

More from the Detroit News:

"It's important for people to know that for the last two years I've been dealing with this particular issue as a result of my political enemies taking this false information to the FBI and to federal authorities," Davis said...

There's a lot to talk about now that the Detroit City Council narrowly approved a consent agreement with the state.

Gov. Snyder's office says the Governor, state Treasurer Andy Dillon, and Director of Urban Initiatives Harvey Hollins will hold a media roundtable this afternoon at 2 p.m. to discuss the agreement.

You can read the Detroit consent agreement here.

Detroit approves consent agreement with the state

As Michigan Radio's Sarah Cwiek reported, the 5-4 vote in favor of a consent agreement with the state "came after an emotionally-charged debate that sometimes erupted into hostility."

The agreement, which the Governor is expected to sign sometime today, sets up a nine-member financial advisory board that would have oversight over the city's financial matters. It also establishes a chief financial officer position, and a program management position, both would report to the mayor.

Cwiek reports the city's restructuring "will be painful and sweeping" with some city departments disappearing, some services cut and others privatized. And the recently negotiated contracts with a coalition of city unions will be tossed aside. New contracts must be worked out.

To help the city avoid insolvency, the state of Michigan will complete a refinancing of some outstanding debt by selling bonds.

Michigan school unions file federal lawsuit against state

The state passed a law last year barring school districts from collecting union dues through payroll deduction.  Schools unions filed a lawsuit against that law in federal court yesterday.

Michigan Radio's Steve Carmody reported "the federal lawsuit alleges the law violates the 1st and 14th Amendments of the U.S. Constitution, by discriminating against school employees’s free speech rights and treating them differently than other public employees…who can still have their union dues deducted from their paycheck."

The governor’s office issued a statement backing the law, “We believe the bill does adhere to the constitution. ”

It's Opening Day for the Tigers!

The first Major League baseball game of the season took place last night in Miami, but for the rest of the League  - today is the day.

In Detroit, the Detroit Tigers will slug it out with the Boston Red Sox at 1:05 p.m. Fans and sportswriters have high expectations for the Tigers this year with many expecting the team to take the AL Central pennant.

In today's Detroit Free Press, Tiger's owner Mike Ilitch told Mitch Albom he spent big money to field a competitive team this year:

Wait 'til next year. It's the sports fan's mantra. But for Mike Ilitch, next years are precious. At 82, he admits he gave Prince Fielder the largest contract in Tigers history at least partly due to urgency in winning a World Series title. "Time is running out," he says. "No use kidding myself."

A Michigan state financial review team met this afternoon and approved a proposed consent agreement with the city of Detroit.

Review team member Conrad Mallett Jr. said the proposed agreement "is the best we can do at the moment we are in," according to the Detroit Free Press.

The consent deal would keep Mayor Dave Bing and the City Council in office but impose substantial state oversight of the city’s finances. The major sticking point under a consent agreement is the reopening of union contracts.

Now its up to Detroit City Council to vote on the agreement. They are scheduled to meet today at 5 p.m. Deputy Mayor Kirk Lewis said today the thinks there are enough votes on council to pass the agreement.

The Michigan Court of Appeals today lifted a temporary restraining order that prevented the state financial review team for Detroit  from meeting.

The court’s move has opened the door to a major step in fixing Detroit’s city finances.

The financial review team, appointed by the governor,  was supposed to meet Tuesday to vote on a “consent agreement” that would restructure the city of Detroit’s finances.

The agreement would help the city avoid the appointment of an emergency manager, but would require painful budget cuts.