Detroit mayor vows to make 'tough decisions' to stave off bankruptcy

Detroit mayor vows to make 'tough decisions' to stave off bankruptcy

**DETROIT** - With the city of Detroit facing potential bankruptcy, Mayor Dave Bing vowed to make significant cuts to balance the city's budget. The city hopes to avoid having an emergency financial manager takeover of the city. Snyder earlier this year signed a controversial law allowing state appointed emergency managers to take over everything from school districts to entire municipalities. Opponents of the law are gathering signatures in an attempt to repeal it. But Bing warned that Detroit could be subject to the law if changes are not made. "Simply put, our city is in a financial crisis and city government is broken," Bing said Wednesday night at Detroit's Northwest Activity Center. " The reality we're facing is simple: if we continue down the same path, we will lose the ability to control our own destiny. "Let me make one thing perfectly clear: I don't want an emergency manager making decisions for my city." The city faces a potential disaster if cuts aren't made to certain city services. Detroit is facing a $45 million cash shortfall by the end of the 2012 fiscal year next June, and the city will run completely out of money by April of 2012. Bing urged the police and fire departments to accept a 10 percent pay cut, which is similar to the ones that other city employees have accepted. He noted that he was not planning on cutting the number of officers, and the pay cut would save the city nearly $13 million. "You want a safe city and you want officers on the street," Bing said during the televised speech. "Public safety is the most important service we provide. I will not allow police and fire to be gutted. I will not allow criminals free reign over our city." Crime in Detroit has actually dropped by 10 percent, but homicides have risen by nearly 20 percent this year. The police force has been stretched dangerously thin over the last decade; with many officers opting for retirement or resignation and the city has not been able to afford to replace them. "Instead of laying off officers, once these people retire, we're not allowed to replace them," a veteran police officer said in August. "It's not quite as bad as laying people off, but we don't have people to back us up. But even when we were hiring, there were not enough who were able to meet the criteria." Bing also announced Wednesday that he plans to take drastic measure to fix Detroit's beleaguered bus system. Bing eliminated all vacation days for the city's bus mechanics, instructing them to work around the clock to fix nearly 100 disabled city buses. "Over the last few months, I've heard numerous stories of people who have been left out in the street and in the dark for hours waiting for buses," Bing said. "We simply have to do a better job. I won't stand here and tell you that we have the ability to fix everything in the short term." Also part of the bus reforms will be "enhanced security" on the buses by Detroit Police, in the wake of an incident earlier this month involving a passenger assaulting a driver. Bing also announced that the city is bringing in a new management firm to operate the bus system, which currently costs the city $100 million per year. "For decades the city has refused to face its fiscal reality," said Bing, who also announced that the city is set to receive 47 new buses by March 2012 thanks to federal stimulus money. "We cannot continue to operate that way. City government has to work within a budget." An audit by Ernst & Young, which was ordered by the city and paid for with taxpayer money, showed that the city's finances are so thin that even laying off 2,200 employees would delay insolvency only until next July. The audit, which led Bing to suggest he would consider becoming the emergency financial manager if asked to do so by Gov. Rick Snyder, also showed that the city is in jeopardy of running out of money as soon as next April if significant cuts are not made. "Literally, these conversations (about potential insolvency) had to begin yesterday, and they have," said Detroit City Councilman James Tate. "What you heard tonight were a lot of proposals. Now it's time to take those proposals into action. Hopefully we'll get everyone involved, willing to work with the city government."