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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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1 posted on 11/17/2011 7:31:33 PM PST by Hojczyk
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To: All


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2 posted on 11/17/2011 7:32:27 PM PST by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: Hojczyk

Ooh! Ooh! I know! Let the unions run the city!


3 posted on 11/17/2011 7:33:38 PM PST by DBrow
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To: musicman

Hi, I’m from Omni Consumer Products and my company would like to put a bid in on running Detriot’s municipal services.


4 posted on 11/17/2011 7:37:37 PM PST by NonValueAdded (At 4 AM, it is a test; at 2 PM, it is a demonstration)
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To: DBrow

I passed through Detroit last year heading into Canada.

That city looks like a War Zone. Scary.


5 posted on 11/17/2011 7:38:50 PM PST by tennmountainman
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To: Hojczyk

I figured theyve been out of money for years.


6 posted on 11/17/2011 7:40:13 PM PST by Husker24
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To: Hojczyk

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!


7 posted on 11/17/2011 7:40:47 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Hojczyk

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...


8 posted on 11/17/2011 7:41:53 PM PST by BallyBill (WARNING:Taking me serious could cause stress related illness.)
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To: musicman

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!


9 posted on 11/17/2011 7:42:49 PM PST by EnglishOnly (Fight all out to win OR get out now.)
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To: Hojczyk

Happy Kawnza


10 posted on 11/17/2011 7:42:56 PM PST by al baby (Is that old windbag still on the air ?)
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To: musicman

Obama need to dig deep into his stash and share the loot with more than his top donors and allies.


11 posted on 11/17/2011 7:46:09 PM PST by GeronL (The Right to Life came before the Right to Happiness)
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To: Hojczyk

Just bulldoze the place and be done with it. (Or maybe give it back to the indians.)


12 posted on 11/17/2011 7:46:36 PM PST by smokingfrog ( sleep with one eye open ( <o> ---)
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To: BallyBill

What? You’re telling me that Eminem Super Bowl commercial about the Detroit rising was just a commercial?


13 posted on 11/17/2011 7:46:36 PM PST by max americana (CAIN 2012)
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To: al baby

The Democrats have mismanaged it for decades. They can’t blame it on the Republicans now.


14 posted on 11/17/2011 7:46:57 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: max americana

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.


15 posted on 11/17/2011 7:48:44 PM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: Hojczyk
Let's not for get exactly what Detroit was:

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.

Link to article I got above text from

16 posted on 11/17/2011 7:49:01 PM PST by IllumiNaughtyByNature ($1.84 - The price of a gallon of gas on Jan. 20th, 2009.)
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To: NonValueAdded

Good luck. Get a couple of illegals from Home Depot to install the city lights and pocket the difference.


17 posted on 11/17/2011 7:49:37 PM PST by max americana (CAIN 2012)
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To: Hojczyk

Sucks to be Detroit.


18 posted on 11/17/2011 7:50:13 PM PST by Lancey Howard
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To: Hojczyk

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?


19 posted on 11/17/2011 7:51:32 PM PST by ImpBill ("America, where are you now?" - Little "r" republican!)
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To: goldstategop

I thought these unions already stole their share from the last Obama stimulus?


20 posted on 11/17/2011 7:54:41 PM PST by max americana (CAIN 2012)
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