Detroit Mayor Dave Bing on Monday laid out a budget proposal that would cut more than 2,500 jobs — nearly a quarter of the city’s workforce — and shave $250 million in annual expenses after the financially struggling city agreed to state oversight that is aimed at fixing a deficit and long-term debt.
Chief Operating Officer Chris Brown told City Council members the layoffs would be in addition to 1,000 job cuts Bing sought earlier. He said the city’s general fund revenues will decrease from $820.5 million to $739 million.
Detroit now has about 10,800 employees and an overall budget of about $2.5 billion, according to Bing’s office.
Bing’s executive budget proposal also calls for privatizing the city’s bus system and transferring its lighting department and airport to an independent authority. The plan also calls for eliminating departments — including workforce development and health and human services — and creating an authority to run them.
Proposed job cuts are wide-ranging and include the staffs of the mayor and city council, as well as buildings and safety engineering, finance, human resources and recreation.
Detroit has an accumulated budget deficit of $265 million and has $13.2 billion in long-term structural debt. A state-appointed review team determined last month that Detroit was under severe financial stress and recommended the city operate under an agreement with Gov. Rick Snyder’s office.
In doing so, the city avoided a state-appointed emergency manager, who, under state law, could have dismissed Bing and the council members. But the deal requires the city to meet specific financial reporting deadlines and make realistic revenue projects.
Monday’s proposals, which extend across all departments, expand on the legal budget proposal Bing submitted to council members on April 12. The initial $2.5 billion proposal came with a 10 percent pay cut for police and firefighters, a reduction in some city services, consolidations of other departments and concessions from city vendors.
The executive budget proposal includes job cuts to the staffs of the mayor and city council, as well as the following departments: police and fire, buildings and safety, finance, human resources, recreation, district court, water and sewer, transportation and others.
Even with lower revenue projections, the Bing administration has said it expects close to a $100 million surplus in the fiscal year that begins July 1.
Snyder, who spoke Monday morning at a business forum, said state and city officials are “asking for sacrifices,” but at the same time “creating a much better environment where job creation can happen.”
“We need a sense of urgency,” he said. “I don’t believe there’s still enough urgency there. I’m not seeing it across the board yet.”
Richard Mack, a lawyer who represents a coalition of Detroit’s civilian labor unions that hammered out an agreement with the city before the consent agreement, said he’s disappointed to see more proposals focused on privatization.
He has been involved in studies that show workers at private companies are paid as much as three times per hour than city employees make for the same work.
“It doesn’t make any sense why private contracts are seen as the solution — long-term or short-term,” Mack said. “What the city will say is we want to get rid of some of the long-term bids. You don’t do that by putting yourself in a position of dependency on companies that don’t have the city’s best interests at heart.”
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This Week’s Celebrity Instagrams (11/26-12/2)
30 photos Launch gallery
1. Little Legend and Puddy 😍😍😍😍
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2. "You on point Phife?" "all the time,Tip". 💥 #bannedfromnormal
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3. Vegan! The Impossible burger at Crossroads
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4. Lawrence #BeforeandAfterEpisodes 1-4: 184lbs 13% body fatEpisode 8: 196lbs 8% body fat S/O @coachdaveboxing with the works outs and @kildareriordan with the nutrition
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5. Jus haaaanngin out
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6. Meanwhile back at home in Atlanta GA someone mad they not on the 🛳. 😳
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7. No limits... Photo cred: Chris Bridges @ludacris
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8. new new
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9. Apparently my 260lbs is too much for the actual vines in the Hawaiian jungles to hold me without breaking and me falling hundreds of feet. So for safety purposes, I'm forced to swing thru #Jumanjj on wires strong enough to hold 12 adult buffaloes and 1 adult Rock. #OnSet #Jumanji #IronicallyIEatBuffaloDailyForLunch #MoreManThanNatureKnowsWhatToDoWith
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10. hey ma! 🎎#wcw 💙
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11. Surprise visit to our factories!!! #GoodAmerican #USA
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13. Peachy Keen 🔥✨⚡️
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14. If this don't look thankful I don't know what does. Happy Thanksgiving to you and yours. #UltraBlessed #24kMagic #SweetPotatoFly
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15. Late nights @nbcmarlon with the writers... we in here!!!
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16. There goes my baaaaaaaaabbbbyyyyy #QueenKingMagic!!! We're up to something! Ira BIG!!! Stay out our buisness -
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17. You want to win every game you play but when you come home to these faces... who cares. #ILoveYouGirls best part of my day, everyday!
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18. Steady,steady..... full size jenga.. "I got this one "???? Or do I ?
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19. Cornrows kind of day 😉@dontaysavoy2 you convinced me and I love. ❤️️
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20. #BrotherlyLove #tbt
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22. #basel #TeamLOVE @kingcombs
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23. Just introduced a special screening of @directher 's groundbreaking (must see) documentary @13thfilm with my brother @themichaelealy | @unitedblackout #blackoutblackfriday
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24. Me & Vanessa Williams giving #DuckLips #Pose on the set of #DaytimeDivas @vh1 - Coming Soon to a tv near you. Lol. - My make up done by @makeupsurgeon
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25. This picture just makes me wanna praise the Lord, you hear me!!!!!! Yes Lord brotha #TEDDYCAMPBELL What a #man !!! You are everything right on this picture husband ......... #gorgeous #stylish #classy #strong #masculine #king #sexy #debonair #gentlemenstyle And that #bible in your hand just seals the deal for me (probably cause i know that, that is what helped you become just as amazing as you look😘). While my heart and mind experiences the goodness of God at #church on Sundays, my eyes experiences the goodness of Teddy😍. Amen somebody🙌🏽. "Bless the Lord oh my soul and all that is within me bless his holy name" #myman #myhusband #goodman #blackman #dapperman #godlyman #goodfather #mybestfriend
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26. Yesterday was my mama's 53rd birthday!!!!! Got to celebrate with her all day. If this is what I have to look forward to I can't wait. Looking like a soft bucket a cocoa butter. Yaaaaaaaaaas! 😍😍😍 love you mommy!
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27. "Shout out to @PureAtlanta for getting the family right"....I'm loving this jogger. 😍😍
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28. This pic warms my heart ❤️ #myLogiebeans and aunt aunt umba @itowandabraxton 😘
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29. You will always be my baby😜. #HappyBirthdayReginae #mybaby18
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30. GC "Gods Child" Red on Red SweatSuit available now at www.MonicaApparel.com ... Take Your Crown wherever you go!! I'm pictured in a Medium... Go to the site now for other options ... cc: @trukernell
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