Mayor Dave Bing says Wednesday he intends to lead the city back to financial health as its mayor. He stressed he does not want an emergency manager “making decisions for my city.”   (Photo by Karen Fox/Tell Us Detroit)
   

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Dave Bing wants concessions from employee unions to prevent state takeover

DETROIT (Tell Us Det) - Detroit Mayor Dave Bing has addressed city residents and called for municipal unions to accept 10 percent pay cuts and Michigan leaders in Lansing to come through with 200 + millions owed the city so the struggling community can avoid falling into the hands of a state emergency finance manager.

Bing told an audience at the Northwest Activity Center Wednesday night that the city faces a $45 million cash shortfall by the end of its fiscal year next June. The city has an accumulated deficit about $150 million in its $3.1 billion annual budget.

He says Detroit "is in a financial crisis, and city government is broken."

Bing also laid to rest, for now, he has no desire to bring an EFM saying, "Let me make one thing perfectly clear," Bing said. "I don’t want an emergency manager making decisions for my city. I am your mayor and I want to continue to lead the City back.

"Shortly after Bing's address, Gov. Rick Snyder issued a statement saying, “I have consistently said that as we work to reinvent Michigan, the City of Detroit must thrive. Mayor Bing and I have worked closely over this past year and I remain supportive of the city’s efforts to resolve its financial problems.

“As I have said previously on this issue, I want to avoid an emergency manager if at all possible. Based on the mayor’s remarks tonight and the severity of the situation he described, we anticipate he will be submitting a request for a preliminary financial review in the near future", said Snyder.

City Council Pro-tem Gary Brown said, "I am disappointed following the mayor’s public address last night (Wednesday, November 16). I expected to hear from him a plan and a timeline to address cash flow immediately so that we may fulfill the City’s obligations, not witness a political speech brimming with a false hope of relief."

"We face an emergency cash flow situation that must be resolved now with the clock ticking more quickly. As a fiscal pragmatist I will not waver in augmenting genuine efforts by my council colleagues to further reduce our operating costs as we discuss a plan-of-action following the mayor’s speech."

Bing repeated his call for unionized workers to accept a 10 percent wage cut, a 10 percent increase in employee payments for health insurance and changes in work rules. He said the worker concessions would save Detroit $40 million for the fiscal year.

"This is not an attack on labor or our dedicated employees," he said. "The private sector, including the auto industry was forced to accept tough cuts to survive."

Bing said he also was asking Gov. Rick Snyder and the state Legislature to give Detroit $220 million because the state failed to keep a bargain to maintain state revenue sharing in exchange for the city's cut in income tax rates a decade ago.

"If we want Detroit to succeed, all of us have to put some skin in the game," he said.

 

 

 
   

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