Mayor: Detroit Won't Run Out Of Cash By April

DETROIT (WWJ/AP) - Detroit's mayor says the city no longer is at risk of running out of cash by April as previously expected.

Mayor Dave Bing on Thursday released a financial and operational restructuring plan update. It highlights cost savings from 1,000 imminent layoffs, overdue payments from the Detroit Public Schools district and a corporate tax increase that Bing says will mitigate a cash shortfall.

"There is no silver bullet that's out here that's gonna get us out of the present situation that we're in," said Bing, as he presented his plan to the Detroit City Council Thursday afternoon. "A lot of hard work is necessary. A lot of changes need to happen."

A review team is looking into Detroit's finances and its recommendations will be forwarded to Gov. Rick Snyder.  It's a step in a process that could lead to a state-appointed emergency manager takeover of the city.

As enacted, the state's new emergency manager law allows the governor to take over a local government or school district by appointing a manager to assume the authority and responsibility of locally elected officials. It includes the power to terminate collective bargaining agreements and even dissolve  a unit of government. Some have called it unconstitutional.

Bing admitted the new plan still may not be enough to prevent an emergency takeover.

"The governor and the treasurer have the final say as to whethere or not the plan is a plan that they can live with that's acceptable to them that would keep an emergency manager out," Bing said. "But when you start talking structural changes, that doesn't happen overnight."

The city is facing a fiscal year budget shortfall of $45 million. Auditors have said Detroit may run out of money as early as April.

(TM and © Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)