DETROIT — Mayor Dave Bing will meet with City Council members this week discuss his plan to address the city’s ballooning budget and unpaid bills.
A Detroit News report has confirmed that part of Bing’s plan to accomplish a 10 percent pay cut is through a 26 day unpaid furlough.
Bing, who is now facing criticism for not immediately addressing the city’s financial crisis, in a debate criticized his opponent, then interim mayor Kenneth Cockrel Jr., for moving too slowly on the problem.
During the final mayoral debate in April, Bing blasted Cockrel for his “inaction” regarding the $300 million deficit. “Had my opponent made the decision to do the cuts that were necessary early on I don’t think that we as a city would be losing a million dollars a day and building that deficit up even more,” Bing told voters two weeks before he won the May 5 special election.
During his campaign Bing also said he was against across the board pay cuts but favored cutbacks on a department-by-department basis. He promised to identify “valuable employees” and make cuts based on performance.
But in the past two months the city’s finances have been so thin that the city’s pension boards are now looking to sue the city for failure to pay past due contributions to funds. According the Detroit news the city owes the Police and Fire Retirement System and the General Retirement System a total of more than $53 million.
Bing is well aware of the dire financial situation he faces as mayor of Detroit. In his campaign he warned that the city could go completely broke this year. In fact he predicted it would happen before his first month in office. “Sometime in the month of May that [Detroit] may run out of cash—I don’t want to put fear in any body but there’s nothing worse than a payless payday.”
Former Detroit financial officer Joe Harris gave the city until December before running out of money and suggested that the state appoint an emergency financial manger who would not make decisions “based on politics.”