Time Ticking Away For Detroit In Budget Crisis

DETROIT (WWJ) - Detroit leaders may be running out of time if they want to avoid a State preliminary review of the city's finances.

Gov. Rick Snyder said he's awaiting from work from the City to put the process into motion.  Asked if he would act without a letter, Snyder said ... eventually.

"We'll, I'm still waiting to see if I get a response from either the mayor or city council, first ... It would be a relatively short period of time, in terms of looking at it," Snyder told WWJ Lansing Bureau Chief Tim Skubick. "My goal is to avoid a financial manager."

Mayor Dave Bing has said the city will run out of money next spring if cuts aren't made.

He's already announced 1,000 workers will be laid off early next year and is now offering more details about his plan to put an end to the city's financial crisis.

The mayor outlined his plan to members of the Detroit Regional Chamber of Commerce on Tuesday, urging them to continue investing in and supporting the city.

Mayor Bing's latest document calls for savings of $102-million this year and $258-million in 2013.  The most savings, $20-million, would come from a change in work rules and a reduction in overtime.  The mayor is hoping to collect $15-million from the Detroit Public Schools for past due payments.

Last week, the mayor outlined other cuts that included outsourcing management of the Detroit Department of Transportation for a savings of $10-million next year.  The mayor's plan to eliminate furlough days and cut city worker pay by 10-percent would save the city $13-million.

Detroit City Council members, too, continued to tackle the issue on Tuesday.

Council President Charles Pugh said city and union leaders must work together in order to work this out  --- and serious cuts are needed.

"I think all nine of us realize that we need to go further than 1,000 layoffs," said Pugh. "And, we need to have a better working relationship with our unions, because we need those union concessions."

Council members said at least 500 police and fire layoffs may be necessary.

A special committee formed to tackle Detroit's budget problems will reconvene next week when Mayor Bing is expected to return the table to talk Council members and financial experts.