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 (10/15-10/21)
31 photos Launch gallery
1. Just a NY girl with BIG dreams....
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2. HAPPY CHILDREN=QUALITY PARENTING. We don't always see eye to eye on everything and that's normal. We're human beings. But we come together and do it right for what's important, the kids. We are not enemies, we are parents. And we are parents 1st. S/O to @monyettashaw for making Mason's bday memorable. S/O to @itscrystalsmith at home taking care of our other lil' Prince. ❤️❤️❤️ THIS IS WHAT CO-PARENTING LOOKS LIKE. #Blessed #Happy #AboveTheDrama #BiggerThanUs
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3. So happy to finally be able to share with you all that I’m the new Global Brand Ambassador for @Revlon! Follow my day on RevlonSnaps. Yay! Choose Love, Everybody! #RevlonXCiara #chooselove #ad
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4. Glam on point!!!@makeupbymotoko & @shaylinjoneshair #easybreezy @lifetimetv #beachesmovie #january2017 😘
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5. ✨True love ✨📸: @jessiemarrerophotography
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7. Today was not easy..but by the grace of God we all got through it. Words cannot express our gratitude for all of your Prayers, Positive thoughts and Support for us throughout the years. Tommy will be missed but most certainly never forgotten...And PLEASE don't ask "Where's Martin?.." he was there too...just not in this picture. Lol! God bless you all.. #LoveConquersAll #MartinShow
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9. West coast get ready for #RockyHorror. I will be live tweeting again. #letsdothetimewarpagain
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10. #THEKEYS pre order yours now ... Available everywhere #NOV22 #WeTheBest 🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑🔑
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11. We about to ROCK at #KCABlackBall!! All for our life-changing effort to end 🌎 AIDS.
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12. Today's #SNAPJACK is brought to you by @yazzthegreatest 😂😂😂💋💋💋
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13. Damn girl you kinda old to be headed to the Go Go. You coming in at the age they leaving. LMAO
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14. Daddy daycare B-Boxin with @acewellstucker @shopraisingace
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15. #FBF Naviyd & URV "LIL MONSTERS"
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16. HAPPY BIRTHDAY TO ONE OF THE BIGGEST LEGENDS IN OUR HIPHOP HISTORY! @snoopdogg CONTINUED BLESSING AND LOVE FAMILY!!!!! REAL OG!
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17. Thank you for a beautiful night VSU! Let's do it again! #HOMECOMING
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18. Had a great time this morning with my familia Erica, Griff & Truth!!
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19. Check out my interview on @essence facebook live. #inmyownwords #nycpromo #day2
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20. #She💋 #tbt #TheCoveAtTheAtlantis #DawgPawsAndAll
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21. Bae #retailtherapy
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22. Why me and @coryhardrict got the same pose... and notee... new mouth #naked
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23. When my husband is my personal 'hype-man'! it kills me every time! 💜😂 #WHATNOW #lostfiles📷
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24. Diggy Simmons
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25. Hand full of @jacquieaiche 💙💎💍 @esnail_la 💅🏾
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26. SuperSoulers! You can watch my interview with Carl Lentz live from my Facebook page, tomorrow at 11a ET| 8a PT. #SuperSoulSunday
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27. 💋 .. When the friendship is easy like Sunday morning. ☀️
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28. Sunday mornings are the best........... hugs and cuddles with my angel
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29. #huggar16 #hellohuggars
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30. My gym is everywhere!.. #RnBMoney #TheGeneral 📸: @twelvepastseven
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31. Nothing I would rather be doing... Rocko setting up our movie, Romelō working on a puzzle & Laiyah singing and sharing all she's learning at school... I'm so grateful for the joy they've brought into my life ... Praying for peace , joy & love in the home of EVERY family ♥️ #HeadScarfPJSunday LOL 😂
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