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Gary Brown: Detroit could run out of cash in December, plan must include layoffs
MLive.com ^ | November 16,2011 | Jonathan Oosting

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.'"


TOPICS: Government; US: Michigan
KEYWORDS: bankrupt; debt; layoffs
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To: EnglishOnly

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?


41 posted on 11/17/2011 9:08:54 PM PST by gigster (Cogito, Ergo, Ronaldus Magnus Conservatus)
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To: Dilbert San Diego

Actually, Detroit looks more like the towns abandoned after Chernobyl

http://www.kiddofspeed.com/


42 posted on 11/17/2011 9:11:18 PM PST by rdcbn
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To: jpsb
They could if they'd contract non-union labor . . . but that's forbidden in Michigan. Why not hire illegal aliens? They're a protected species. I'd like to see SEIU and the building trade unions of AFL-CIO go at it.
43 posted on 11/17/2011 9:40:20 PM PST by MasterGunner01 (To err is human; to forgive is not our policy. -- SEAL Team SIX)
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To: hinckley buzzard

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.


44 posted on 11/17/2011 10:09:51 PM PST by ImpBill ("America, where are you now?" - Little "r" republican!)
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To: EnglishOnly
well, I actually hope Detroit does what it has to do and becomes a vital city again....

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....

45 posted on 11/17/2011 11:51:38 PM PST by cherry
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To: gigster

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.


46 posted on 11/17/2011 11:58:33 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: BallyBill

“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).


47 posted on 11/18/2011 2:54:55 AM PST by kearnyirish2
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To: gigster

“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.


48 posted on 11/18/2011 2:57:04 AM PST by kearnyirish2
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To: LukeL

“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)


49 posted on 11/18/2011 2:59:19 AM PST by kearnyirish2
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