Detroit Mayor Bing Could Ask State For Loan

DETROIT (WWJ) – Detroit Mayor Dave Bing has indicated he could ask the state of Michigan for a short-term loan of up to $150 million to deal with the city’s fiscal crisis and avoid a state-appointed emergency manager, a spokeswoman confirmed Friday.

Bing told the Wall Street Journal earlier this week he’d rather the state give him a loan than appoint a financial overseer.

“If Detroit fails or doesn’t make it or doesn’t come back as soon as we would like it too, it’s going to cost the state money anyway. It’s you pay me now or pay me later,” said Bing.

Bing’s spokeswoman, Naomi Patton, however said the mayor has “no specific plans” to ask Michigan Gov. Rick Snyder for the reported $125 to $150 million loan.

“Mayor Bing was simply responding to the Wall Street Journal reporter’s question about whether the Mayor would ask for “bridge funds.” The Mayor replied, “That’s possible.” When the reporter later asked how much he would like to ask for, the Mayor responded with that range, but never said he planned to ask for such funding,” Patton said in a statement.

The news comes on the heels of Bing’s State of the City address, during which he called on the state to give Detroit tangible support, both financially and operationally.

The city is on course to run out of cash by April and faces nearly a $50 million shortfall by May. New labor agreements with police, firefighters and city unions that could save the city $100 million have yet to be ratified.

The state-appointed financial review team has a March 28 deadline to recommend that either an emergency manager or a consent agreement be reached.

MORE: Mayor Bing’s State Of The City Address: How Did He Do?

More from Vickie Thomas
  • Sally

    As a member of this state not living in Detroit, I want to know how this “loan” will be paid back. Fact-the officials in charge in Detroit cannot balance the books now with the money they have. Question-how will they manage a “loan” to balance the books and still make payments to repay? Don’t depend on Kwame’s restitution-we all suspect he is laughing at the citizens from his mansion watching cable tv and feeling sorry for being misunderstood as he is a changed man. I

    F the loan is granted with it better go overseers to check receipts for how it is spent against what is given out. Rick are you hearing the citizens of Michigan? My tax money should stay in my local area where I elect those whose job is spending it to provide services for me. The elected officials in Detroit are not doing their job. The heads of departments and committees are not doing their job. Don’t give the Detroit Council state funds to blow.

  • Jim

    If Detroit gets the loan, and that is questionable, make sure they sign over the water department as collateral. That way the suburbs who buy from that entity would not be at the mercy of the black Detroiters who started the department way back in the 1800s. Think about that! I’m just proposing!

  • eva flowers

    Bing just getting ducks in order, adding another finger pointing excuse why Detroit failed because of outsiders, just in case the state doesn’t grant a loan. But the bottom line, if they do get the loan, how will they pay it back?

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