Detroit Mayor Dave Bing is warning that the city could be taken over by an Emergency Manager if the city council does not approve his budget which includes $200 million in proposed cuts.
In an address to city council yesterday, Bing proposed a five year plan to close the city’s $155 million deficit with cuts to pensions and health care for city workers and an increased tax on casinos.
Mlive.com reports:
Noting that city revenues have shrunk from $1.1 billion in 2000 to just $753 million today, Bing said unless the city makes drastic changes, the $155 million structural budget deficit will balloon to $1.2 billion annually by 2015.
“We are already passed (sic) triggers,” Bing told reporters after his presentation to Council. “If the governor wanted to have an emergency financial manager, he could do it now. I want to be realistic in my approach in terms of what we can and can’t do. I don’t want to sugar coat anything. We are in a terrible situation and we will not be able to eliminate our structural deficit in one year.”
In a meeting with the editorial board of the Detroit News Bing said that he wants workers to pay 20 percent more for healthcare. He also proposed a one year long freeze on payments to two state pension systems, ending bonus pension payments to retirees and routing new hires into 401(k) plans rather than defined benefit pensions.
Bing also said that he will try to change a state law in order to impose a temporary tax on city casinos of up to 3 percent.
In a statement yesterday City Council President Pro Tem Gary Brown said that Bing’s cuts don’t go far enough and that all city services “must be on the table for consolidation, merger, privatization or elimination.”
My fiduciary responsibility to Detroiters requires me to do more than make superficial revisions to the budget the mayor presented to us this year. I firmly believe this proposed budget plan will actually result in the appointment of an EM because it does not adequately address the city’s numerous financial issues that currently trigger the requirement for a preliminary review.