Austere Detroit Budget Includes Job, Wage, Service Cuts

DETROIT (WWJ) – Detroit Mayor Dave Bing’s office has proposed a much-leaner city budget for the next fiscal year that anticipates more job cuts, wage cuts and reductions in some city services.

Deputy Mayor Kirk Lewis formally presented the $2.5 billion budget to City Council on Thursday, one week after Detroit entered into an agreement with the state on the city’s budget process.

“This budget provides for an approximately $100 million surplus, but it comes with the consolidation of reduction of departments as well as continued workforce reductions,” Lewis said. “In order for city government to be efficient, we are in the process of evanuatuing evety service the city provides.”

The proposed cuts will also include a 10 percent pay cut to police and firefighters, a 25 percent cut to the budget of the Mayor’s Office where a 10 percent pay reduction through furlough days became permanent earlier this year, concessions from suppliers, changes to medical benefits, pension related concessions, work rule changes and a $15 million increase in income tax revenue.

City Council will now begin the lengthy process of reviewing the budget.

Meanwhile, the city’s legislative and executive branches prepare to hire CFO, Program Director and 9-member financial advisory board as required according to a consent agreement with the state.

Read more details about the proposed budget at this link.


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