This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/world-us-canada-15782072
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Detroit in financial crisis, Mayor Bing says | Detroit in financial crisis, Mayor Bing says |
(1 day later) | |
The city of Detroit needs to take immediate action to prevent bankruptcy or a state takeover, Mayor Dave Bing said in a televised address. | The city of Detroit needs to take immediate action to prevent bankruptcy or a state takeover, Mayor Dave Bing said in a televised address. |
Detroit will run out of cash in April and be $45m (£28.5m) short by the end of the fiscal year in June, he said. | Detroit will run out of cash in April and be $45m (£28.5m) short by the end of the fiscal year in June, he said. |
Mr Bing urged municipal unions to accept cuts and state leaders to pay the city $220m from a 13-year-old tax agreement. | Mr Bing urged municipal unions to accept cuts and state leaders to pay the city $220m from a 13-year-old tax agreement. |
The mayor also asked for a 0.9% increase in business taxes. | The mayor also asked for a 0.9% increase in business taxes. |
His administration has said Detroit has an accumulated deficit about $150m in its $3.1bn annual budget. | His administration has said Detroit has an accumulated deficit about $150m in its $3.1bn annual budget. |
"Simply put, our city is in a financial crisis, and city government is broken. That's not new. That's not an opinion. That is a fact," said Mr Bing. | "Simply put, our city is in a financial crisis, and city government is broken. That's not new. That's not an opinion. That is a fact," said Mr Bing. |
"Let me make one thing perfectly clear: I don't want an emergency manager making decisions for my city." | "Let me make one thing perfectly clear: I don't want an emergency manager making decisions for my city." |
A state law passed in March expands the power of state-appointed financial managers, allowing them to intervene earlier in the financial decisions of municipalities. | A state law passed in March expands the power of state-appointed financial managers, allowing them to intervene earlier in the financial decisions of municipalities. |
Emergency managers have already been appointed for the Detroit public school system - as well as the cities of Pontiac, Ecorse and Benton Harbor. | Emergency managers have already been appointed for the Detroit public school system - as well as the cities of Pontiac, Ecorse and Benton Harbor. |
In a statement, Michigan Governor Rick Snyder, said he wanted to avoid an emergency manager for the city, "if at all possible". | In a statement, Michigan Governor Rick Snyder, said he wanted to avoid an emergency manager for the city, "if at all possible". |
Some Michigan residents have sued over the new law, arguing it goes against the Michigan constitution. | Some Michigan residents have sued over the new law, arguing it goes against the Michigan constitution. |
No bargains | No bargains |
Following Thursday's speech, Mr Bing said the city would be cutting 1,000 jobs early next year in a bid to help the budget crisis. | |
On Friday, the mayor's office said that the cuts represent 9% of the city's workforce and will save $12m. | |
Mr Bing's speech outlined his plan to take the city out of financial insolvency - including a 10% cut in wages for the city's unionised workers and as well as a 10% increase in employee payments for health insurance. | Mr Bing's speech outlined his plan to take the city out of financial insolvency - including a 10% cut in wages for the city's unionised workers and as well as a 10% increase in employee payments for health insurance. |
"The reality we're facing is simple. If we continue down the same path, we will lose the ability to control our own destiny," Mr Bing said. | "The reality we're facing is simple. If we continue down the same path, we will lose the ability to control our own destiny," Mr Bing said. |
Union officials said finding savings by cutting salaries wouldn't solve the city's structural issues. | Union officials said finding savings by cutting salaries wouldn't solve the city's structural issues. |
"The mayor doesn't bargain," Catherine Phillips, chief negotiator for a local government employees union, told the Detroit Free Press. "The problem isn't us, it's the layers and layers of management that should go." | "The mayor doesn't bargain," Catherine Phillips, chief negotiator for a local government employees union, told the Detroit Free Press. "The problem isn't us, it's the layers and layers of management that should go." |
Detroit says it is also waiting on $220m in state funding. In 1998, the city lowered its income tax in exchange for guaranteed levels of revenue sharing from Michigan. | Detroit says it is also waiting on $220m in state funding. In 1998, the city lowered its income tax in exchange for guaranteed levels of revenue sharing from Michigan. |
The law allowed the city to suspend the tax decrease if local unemployment went above 10%. That occurred in 2003 - and Detroit suspended the tax decrease in 2004, according to the Free Press. | The law allowed the city to suspend the tax decrease if local unemployment went above 10%. That occurred in 2003 - and Detroit suspended the tax decrease in 2004, according to the Free Press. |
Detroit's population and tax revenues have been sharply decreasing since 2000. Since that year, 250,000 people have left the city. | Detroit's population and tax revenues have been sharply decreasing since 2000. Since that year, 250,000 people have left the city. |
Previous version
1
Next version