Detroit Financial Crisis Solutions Discussed By City Council

Detroit City Council: How To Come Up With $60 Million?

Detroit City Council members met Tuesday afternoon to continue a discussion about the city financial crisis and come to agreement on a plan to offer Mayor Dave Bing. Council appeared prepared to counter the mayor's suggestion of 1,000 layoffs for city workers with more serious cuts.

At a meeting that stretched beyond two hours, members debated suggesting 2,300 layoffs, which would result in $36.4 million in savings for the city. Seven of the nine Council members agreed that they would suggest that many layoffs in a proposal to Bing. Council Members Brenda Jones and JoAnn Watson were not in agreement.

"This is a crisis, so if people aren't able to come to the table and negotiate in good faith ... as much as it pains me, I agree with the 2,300 figure," Councilwoman Saunteel Jenkins said.

Add the layoff savings to the $15 million that Detroit Public Schools owes the city and Council believes it can collect, and the resulting savings are still shy of the "magic number": 5 percent of the operating budget, or $60 million.

Watson urged the council to make the $220 million owed by the state of Michigan to the city the first priority. "This should be our leading piece. We should be going with the mayor to Lansing to submit that bill to the governor and negotiate there.... We're not pitiful, poor and powerless; they owe us money," she said.

The Council members discussed other short-term solutions to boost savings, with ideas ranging from giving up their own taxpayer-funded cars to raising rates for the People Mover, DDOT and city parking. Leasing out the airport and halving the communications and media budget were another two other ideas offered.

"I turned my car in today. ... I do think it starts with us," Council Member Kwame Kenyatta said. The Council is also considering a 10 percent cut to their own department's budget.

Later on Tuesday, Michigan Gov. Rick Synder hinted the Council and mayor's proposals would not go far enough to stave off a state review of Detroit's finances -- the first step in appointing and Emergency Financial Manager for the city.

Speaking to the media, Snyder said he was waiting for a proposal from the city, but said Bing has a "a relatively short period of time" before the state might move forward with its own review.

Council planned to meet again Wednesday morning to hammer out a final proposal to bring to the mayor.

UPDATE: Wednesday, 2:11 p.m. -- Despite planning to meet Wednesday morning, City Council did not end up holding a session. Kirsten Ussery, a spokeswoman for Council President Charles Pugh said the Council was not able to secure a clerk because Wednesday was a furlough day. She also said Mayor Bing, whom the Council had asked to join the meeting, cancelled.

Ussery said Council would reconvene on Monday. "I think they're gonna plan their final agreement on short term recommendations and hash our longterm recommendations," she said. She said they had not rescheduled the meeting with the mayor, but would continue to try to meet with him.

For more on the City Council's response to the financial crisis, read our liveblog of the Wednesday meeting's events below and check back for updates.

Simone Landon contributed to this report.

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