Detroit City Council Meets To Discuss Financial Crisis

The Detroit City Council continued discussions Monday on Mayor Bing's proposals to address the city's financial crisis.

The mayor announced Nov. 16 that the city will run out of cash if drastic measures aren't taken. The city faces a $45 million cash shortfall by the end of its fiscal year in June, and the state could appoint a financial manager to make sweeping changes.

Bing's administration has said Detroit has an accumulated deficit about $150 million in its $3.1 billion annual budget. On Friday, Bing proposed 1,000 initial layoffs with the possibility of more to come.

City Council members have been outspoken about Bing's plan, with several members saying the mayor's proposals do not go far enough to address Detroit's fiscal problems.

Several proposals came to light at Council's meetings last week. Council members discussed ways to raise revenue and suggested raising the Detroit city income tax to 3 percent for residents and 1.5 percent for non-residents.

Also on the chopping block were subsidies to the Detroit Zoo, Detroit Economic Growth Corp., Eastern Market, the Detroit Institute of Arts and the Charles H. Wright Museum of African American History, according to the Free Press, and 2,300 public sector jobs.

From increasing income taxes to laying off more than 500 police officers and firefighters, the Detroit City Council rolled out an ambitious -- and painful -- plan Monday that it hopes will save the city from insolvency and an emergency manager.

Several Council members reiterated Mayor Bing's call for the state of Michigan to pay $220 million owed to the city, and members also proposed collecting the $15 million in unpaid electricity bills owed by Detroit Public Schools. On Monday, DPS Emergency Manager Roy Roberts announced the district has made significant progress in reducing its own $327 million deficit to $89.3 million.

This is a developing story. Check back here for updates.