Tagged: layoffs

DETROIT (AP) - Detroit Mayor Dave Bing has laid out a budget proposal that would cut more than 2,500 jobs and shave $250 million from the city's annual expenses.

Bing's Chief Operating Officer Chris Brown told City Council members Monday the layoffs would be in addition to 1,000 job cuts Bing sought earlier. Brown says the city's general fund revenues will decrease from $820.5 million to $739 million.

Detroit has an accumulated budget deficit of $265 million and $13.2 billion in long-term, structural debt and is trying to fix its finances after agreeing to state oversight Bing's budget proposal also calls for privatizing the city's bus system and transferring its lighting department to an independent authority.

The Detroit News and Detroit Free Press say $75 million would go toward the city's accumulated deficit.

The Flint City Council will hear this afternoon how the city’s emergency manager plans to spend the city’s money next year.

Emergency Manager Michael Brown has been poring over Flint’s finances since he was appointed by Governor Snyder in December to deal with the city’s “financial crisis.”

Brown’s budget plan for next year is expected to reflect the need for further financial belt tightening for a city that has already felt the pinch of past cuts.

Flint’s finance director has said the budget will probably show the city will have to do “less with less.”      That may include layoffs and furlough days for city employees.

Several city unions agreed to contract concessions this month.

The emergency manager’s budget plan may also include selling bonds to address Flint’s long-term debt problem.

AUBURN HILLS, Mich. (AP) - Solar energy product maker Energy Conversion Devices Inc. says it has temporarily suspended manufacturing and is planning about 500 job cuts.

The Auburn Hills-based company announced Tuesday that manufacturing has been halted because of excess inventory. The company says about 400 workers will be furloughed at its manufacturing facilities in Michigan, Mexico and Ontario, Canada.

The production cuts include United Solar Ovonic facilities in Greenville, where more than 140 layoffs recently were announced. Other Michigan manufacturing facilities are in Auburn Hills.

The company said that to help cut costs about 500 full-time job cuts were expected by the end of the year.

Energy Conversion Devices has been restructuring its operations since May. It said it expects to return to normal production levels within 60 days.

If the constant stream of what seems like contradictory economic news leaves you feeling confused, join the club.

Headline No. 1: “Midwest economy slows.”

No. 2: “Michigan surpasses 48 states in growth.”

And No. 3: “Michigan has fourth-highest number of layoffs.”

These are all true stories about the third quarter.

Bob Tomarelli is an analyst with IHS. He says the stories just reflect different aspects of the economy.

“It is doing better," Tomarelli says. "It is recovering at a decent pace, a very quick pace. But things are still not great because it was hit so very hard.”

Tomarelli says most of the 100,000 jobs added in the third quarter were in professional business services and manufacturing. But he says that boost is probably temporary.

So while they are getting a nice short-term burst that’s adding to payrolls and creating some jobs, or at least bringing some jobs back, it is not expected to keep up at that pace, and in the long run is actually expected to decline.”

Most of Michigan’s 29,000 layoffs were in government and financial sectors.

The Lansing city council voted 5 to 3 last night to approve a city budget that deeply cuts police and fire in the capitol city.    Lansing, like many Michigan cities, is struggling with declining tax revenues and rising health care costs. 

Last night, the city council approved a budget that lays off more than a hundred city employees, including dozens of police officers and firefighters.  

Lansing mayor Virg Bernero says the cuts in public safety are unavoidable. 

The city of Lansing is facing a projected $20 million dollar budget deficit. 

On Monday, the city council is scheduled to vote on a budget intended to close that gap.   As it stands now, the city may have to lay off dozens of police officers and firefighters, as well as making other painful spending cuts to balance the budget.