DETROIT (WWJ) – Both of Detroit’s municipal pension boards have agreed to concessions designed to save the city about $60 million, as Mayor Dave Bing works to slice into an enormous budget deficit.
The Mayor said the savings are from the General Retirement and Police and Fire pension systems.
Bing has said those and other concessions are needed to help eliminate Detroit’s $155 million deficit and avoid a state-appointed financial manager.
The concessions could help the city avoid proposed cuts to the Detroit Institute of Arts and other cultural institutions.
Mayor Bing also is negotiating with city labor unions on health care concessions as part of his five-year deficit elimination plan.
Earlier this month, Bing released his $3.1 billion budget plan to the City Council, saying the plan is a “strategic approach” to bringing stability to the city and must be done to “ensure Detroit’s survival.”