Posted on 11/21/2012 7:20:31 PM PST by Founding Father
The city of Detroit, facing a serious cash crisis, is set to go bankrupt by the end of this year and would put city workers on furlough unless it strikes a deal with the city council that would bring in $30 million before Dec. 14.
Detroit has been in financial turmoil for years, losing a quarter of its population in the past decade and facing a shrinking auto industry that has reduced tax revenues. The Detroit City Council gave the mayor the option to hire a financial advisor and in return receive $30 million by the end of the year.
But the Council on Tuesday voted 8-1 to delay the decision on the deal, which would pay the Miller Canfield Law Firm $300,000 to advise Mayor Dave Bing. The deal would have released $10 million in bond money on Tuesday and another $20 million in December.
The Council decided not to authorize the contract due to suspicions that Miller Canfield has conflicts of interests, since the firm handles other city business. The Council was also concerned that the firm’s contract may not be legal, since it was not prepared or approved of by the city’s chief on-staff lawyer. Council members were also upset that Bing only presented them with one law firm, denying them options to choose from.
"The Council’s rejection of the Miller Canfield contract means the city will not receive the first $10 million scheduled for release today,” Bing said in a statement. “As a result, it will be more difficult for the city to maintain its liquidity until the receipt of property tax revenues beginning in January. Today’s vote is one more example of how City Council has stalled our efforts to bring financial stability to the city of Detroit."
Some blame the mayor for the denied funds, claiming that his limited options gave the Council no choice but to reject the proposal.
“Why is Mayor Bing putting gthe city’s finances at risk by marrying himself to one law firm?” City Council President Charles Pugh told reporters.
If a deal cannot be struck within the upcoming weeks, then those who will suffer most are Detroit’s government employees. Bing plans to put city workers on furlough on Jan. 1 to save cash if fails to receive the much-needed money from the law contract. With a $30 million cash shortfall, the city would temporarily lay off thousands of workers to avoid bankruptcy. The only city workers who would be able to keep working are police officers, firefighters, EMS workers, or employees of departments that raise revenue for the city.
The City Council also rejected a proposed contract to overhaul the Detroit Water and Sewerage Department, proposing to cut 81 percent of its workforce in an attempt to save cash.
“If we don’t stop this, there will be nothing left of the city of Detroit,” Michael Mulholland, secretary treasurer of the American Federation of State, Council and Municipal Employees Local 207, told the Detroit Free Press. With a city that has already lost much of its population due to declining jobs, cutting the workforce with furloughs and layoffs is only worsening the crisis. At the current rate, Detroit is set to hit a weekly cash flow of $4.1 million in mid-December and drop to negative $4.8 million at the end of the year.
If the city needs a quick ten million the police could raid a few hundred drug stash houses. All the pot seized could be sold to the folks in Colorado now that pot is legal there and the proceeds plus cash seized would easily make ten million.
If we don’t stop this, there will be nothing left of the city of Detroit
oxymoron from a moron.
Intellectually and morally it has been ever since Coleman Young was Mayor.
Wow! Maybe time to change the city’s name to “Mogadishu on the lake”?
Re your power 51. Yes, I do realize that communism is all about power, not prosperity. What I don’t get is why the leaders of these companies are willing to surrender their economic status for the far-away goal of power. That takes enormous dedication to the communism ideal, something beyond my understanding. After all, why would anyone be willing to give up their livelihood in the here-and-now?
In a freak accident all the lawyers at Miller Canfield suffered broken legs or ankles. No longer able to chase ambulances they are going after passive Detroit
I think it was the Attorney General Schuette. He is pretty good about these things. Has a pretty sharp staff.
I think it was the Attorney General Schuette. He is pretty good about these things. Has a pretty sharp staff.
I think it was the Attorney General Schuette. He is pretty good about these things. Has a pretty sharp staff.
Then the money ran out. And things got really, really ugly.
If government stops funding useless programs, stops feeding the dependency class -- what happens? Well, it ain't pretty.
Which is why (in the Rolling Stone vision) we must avoid Republican government at all costs.
I think Bill Schuette would make a fine governor.
A country has no money, so it strikes a deal with itself...and prints more money.
We are SO screwed.
Oh well ... Happy Thanksgiving
“Let us not forget Kwame Kilpatrick. Purveyor of all things shady, criminal, and downright ghetto.”
For sure, but then he had his mother Carolyn Cheeks Kilpatrick to serve as a role model. But let’s not forget the Cokerel’s and Martha Reeves ( from Martha and the Vandellas). And the list wouldn’t be complete without Monica Conyers ( who went to jail for 37 months for corruption) while her husband continued on as “their” congressman. There isn’t enough ink to list all the crooked black politicians in Detroit ( as well as a lot of other places).
I guess when Detroit finally goes under, they can really get back to their “roots” by building mud huts where a once proud city stood. And they can invite their muzzie “brothers” down from Deaborn, roast a dead animal and have a celebration of their success.
Where are you? We have the best election ever going on and you’re missing it.
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