Just How Bad Is Detroit’s Financial Condition?

DETROIT (WWJ) – Detroit Mayor Dave Bing is expected to spell out just how bad the city’s financial condition is as part of a speech Wednesday night that you can hear on WWJ Newsradio 950.

WWJ Newsradio 950’s Ron Dewey reported the numbers from city hall are not pretty.

A report shows the city of Detroit could run out of cash by next April unless drastic action is taken. One councilman says Wednesday night’s address will have a chilling effect, another said the city is “as broke as the Ten Commandments.”

The mayor and city council have said union concessions and other legacy costs are key, but restructuring experts say the city may have no other choice than to appoint an emergency financial manager to restructure city government — and that could mean tearing up union contracts, selling assets and ending other nonessential services.

Bing told WWJ’s City Beat Reporter Vickie Thomas recently that tough decisions have to be made, including layoffs.

“There are gonna be a lot of people that are unhappy, but the reality is that we can’t continue to spend what we don’t have and continue to increase the deficit,” Bing said. “That’s what’s happened in the past and I don’t want to be a part of that.”

Bing also said it could mean layoffs, and it could mean departments shutting down altogether.

Bing also hinted that changes to the city’s workforce, as well as health and pension payments, need to be made.

“We don’t have the funding that’s necessary, and every month that goes by without us making the necessary cuts, the necessary consolidations, the reforms that we need to make, we’re just getting ourselves in a worse situation.”

Bing will deliver his address starting at 6 p.m. Wednesday. There will be complete coverage on WWJ Newsradio 950 and CBSDetroit.com.

More on this story.

More from Ron Dewey
  • Save Ourselves

    Two major problems at work here

    1. The social divide that created segregation
    2. The invasion of outside aggressor capitalists who made their auto fortunes in Detroit, squandered the industry and left the state unemployed

  • BOW

    Question…they want Union concessions. Just wondering if the City Council and the Mayor have taken any concessions?

  • http://detroit.cbslocal.com/2011/11/15/detroit-council-cancels-break-amid-financial-crisis/ Detroit Council Cancels Break Amid Financial Crisis « CBS Detroit

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