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City of Detroit Faces More Financial Woes

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mayor-bingDetroit Mayor Dave Bing/Courtesy PhotoThe city of Detroit is on the verge of running out of money by February because of runaway pension and health care costs, prompting Mayor Dave Bing to warn that the state may soon have no choice but to appoint an emergency manager to take over city finances and union contracts.

The only way to avoid a state takeover, Bing said in an exclusive interview with the (Detroit) Free Press, is for union employees to accept deep cuts in pension and health care benefits by the summer and agree to modify workforce rules that make it difficult for employees to be laid off or shifted to other positions.

Employees last year accepted 10 percent pay cuts.

"I was voted in as mayor, not an emergency manager," Bing said

City Council members vowed to do what it takes to solve the city's financial crisis without having to resort to the intervention of an emergency manager.

All nine council members appeared in the 13th floor auditorium at City Hall to show the panel is united. Council President Charles Pugh says the city needs to negotiate concessions from unions and make other cost-cutting moves before entertaining the notion of independent oversight.

Pugh said a group of people has been meeting for the past 1 1/2 weeks to come up with a comprehensive plan to restructure city government to address the city's cash flow problem. The council president said he knows some of the decisions that will grow from the meetings will be unpopular, but it's better than an emergency manager.

Last modified on Monday, 07 November 2011 20:52

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