Skip to comments.Gary Brown: Detroit could run out of cash in December, plan must include layoffs
Posted on 11/17/2011 7:31:31 PM PST by Hojczyk
With Detroit Mayor Dave Bing preparing to explain the city's fiscal crisis tonight in a rare televised address, Council President Pro Tem Gary Brown says the situation is even worse than anyone has let on.
Bing is expected to discuss a confidential Ernst & Young report obtained by the Detroit Free Press that suggests Detroit could run out of cash by April without steep cuts to staff and public services.
That's a grim prognosis, but according to Brown, the city actually could be unable to make payroll "as early as December."
"I know the report says April, but there are certain risk assumptions that when you take those into consideration, worst case scenario you could run out (of cash) in December," Brown said this morning on WJR-AM 760.
In his speech tonight, Bing is expected to propose privatizing the city's public bus system and lighting departments, both of which have have been failing residents but reportedly cost them $100 million a year in subsidies.
Brown supports that long-term plan, but he is hoping the mayor will couple it with a short-term strategy to lay off up to 2,300 city workers if unions fail to agree to long-discussed concessions.
If Bing doesn't, City Council will.
"If the mayor tonight comes out with a plan that does not address the short-term and long-term issues, the Council is going to come out with a plan. We're going to put it in a resolution, send it to the governor and say 'We're willing to make these cuts.'"
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Ooh! Ooh! I know! Let the unions run the city!
Hi, I’m from Omni Consumer Products and my company would like to put a bid in on running Detriot’s municipal services.
I passed through Detroit last year heading into Canada.
That city looks like a War Zone. Scary.
I figured theyve been out of money for years.
Detroit has always been the city of the Walking Dead.
Jim, now its really dead.
Michigan voters should not bail out that rathole. Let the OWSers do it!
Strange.. Most of my magazines this year had HUGE 6 page advertisement sections on the Return of the Motor City...it was Reborn from the ashes...probably took a lot of taxpayer money to take out all them pages. Thank You America...
Detroit will get what it Deserves.............
I hope all those Liberals Starve to Death!
In Fact I hope the entire State of Michigan just SINKS!
Obama need to dig deep into his stash and share the loot with more than his top donors and allies.
Just bulldoze the place and be done with it. (Or maybe give it back to the indians.)
What? You’re telling me that Eminem Super Bowl commercial about the Detroit rising was just a commercial?
The Democrats have mismanaged it for decades. They can’t blame it on the Republicans now.
Yup. You know the unions are going to fight layoffs and privatizing much of the city’s business.
Resurrection? I don’t see one in the works.
Detroit the one time model of American Industrial Genius has become the Poster Boy for the democratic parties entitlement mentality. Have these policies payed off? No! since 1961 when the first Democratic Mayor for the next 49 years of Democratic Mayors began to implement entitlement Democratic Entitlement Programs within Detroit.
This Grand Progressive experiment has clearly failed, yet the same policies are continually forced upon the American people. The Models Cities Program which stole $ millions of taxpayers dollars was the first great step in creating the Central Urban Planning Experiment resulting in the above mentioned carnage that we see today. The radical leftist economic policies fail this is crystal clear . Detroit has been on the receiving end of every government handout since 1961.
Good luck. Get a couple of illegals from Home Depot to install the city lights and pocket the difference.
Sucks to be Detroit.
Well just ask the public employees in Ohio and Wisconsin, it’s better to get “laid off” than have collective bargaining rights curtailed or modified, isn’t it?
I thought these unions already stole their share from the last Obama stimulus?
Yup. Detroit is Exhibit A for the decay of Urban America.
Not a pretty sight.
Detroit was once considered so important, “the arsenal of democracy”, that it was the first US city protected by a missile defense system. The remnants of the system now house the homeless.
In Detroit, apparently shovel-ready projects didn’t turn things around there.
Are you familiar with Michigan’s new Emergency Manager law?
The State of MI won’t bail Detroit out, it will shut it down so to speak and bust the unions out of business.
And oh, it’s rather red here since last fall...
Gov. Snyder and Detroit Mayor Bing have a clear understanding on this and Bing has not been shy the last few days warning the unions of their impending demise.
Let them eat Democrats.
Yup, that was porkulous money, from your pocket and mine...by way of the UAW whorehouse on Pennsylvania Avenue...
Yes, Occupy Detroit is out there in all the news in the Detroit markets, problem ironically is there were no muggings, rapes, murders, lice, suicides, shootings along with a real small turnout.
Anyone remember in the Kentucky Fried Movie where as punishment the evil Karate Master sent the spy to Detroit?
Like most rust belt states, Ohio, Illinois, Indiana, You have two states in one: on one hand an archipelago of concentrations of filthy parasite urban dwellers and on the other an expanse of solid middle America supporting them.
Not much to crow about. Who in their right mind would want to occupy Detroit? Not even the Left wants it.
The city wants to do exactly that, but sadly it can not afford it.
Lots of folks going at least partly Galt is going to provide increased use of the words “unexpected” and “unprecedented”.
In Ohio the union thugs were so busy partying and gloating that they missed Kasich's comments on the defeat of issue 2, when he said the state has no money-- and there is no bailout in sight for the cities. The cities in Ohio are all basically broke already themselves, and are now on their own dealing with ravenous union wolves.
I’ve seen some pictures of Detroit recently, and it’s shocking that a major American city looks like a war zone. Sometimes people here attach the pictures of Detroit, Camden, New Jersey, Gary, Indiana, and some other hell holes.
But how can American cities look like war zones, when we haven’t been invaded by a foreign army? You really wonder, how it is that our own residents tear these places apart????
Who would invest in such madness? Greek bonds look a lot better. Heck, even Italian bonds are paying 7% for the risk.
Hey, Dumbass, I grew up in the city of Detroit in the 50’s to the 70’s.
You obviously know nothing about my city.
We were the richest city in the world in the 50’s , due to our manufacturing prowess.
I don’t live there now, due to their obvious Socialist inklings, but I would move back if the political situation would change.
So, where do you live, and have you ever lived in the city of Detroit?
Actually, Detroit looks more like the towns abandoned after Chernobyl
Jefferson County, Alabama just declared Bankruptcy. So it isn’t far fetched that some if not all the cities you list could end up doing the same.
lay off city workers...demand union concessions....crack down big time on crime, improve the cleanliness of the city...tear down the rundown buildings or houses....plant huge gardens and parkways if nothing else....
I’ve been to Detroit. The only place it looks beautiful is the city skyline across the river on Riverside Drive in Windsor, Ontario. You can see it from the casino.
“Most of my magazines this year had HUGE 6 page advertisement sections on the Return of the Motor City”
That was to separate foolish investors from their money, and should be illegal. What an absolute disgrace; always believe your eyes (and gut).
“I would move back if the political situation would change.”
The long-term commitments from decades of socialism make the political situation irrelevant (like in NJ); the liabilities for people who retired 30 years ago will make the area undesirable & expensive for a long time to come.
“Anyone remember in the Kentucky Fried Movie where as punishment the evil Karate Master sent the spy to Detroit?”
That was incredible, when you think how old that movie is. They already knew...(great movie, BTW)