DETROIT (WWJ) -Detroit’s Financial Advisory Board says it seriously doubts that the city will be able to get through its cash crisis.
Tuesday, the board endorsed state Treasurer Andy Dillon’s move to begin a 30-day review of the need for an emergency financial manager.
Madame chairwoman Sandra Pierce said she’s worried that the numbers are not adding up: “The numbers that you forecasted and the numbers that have actually come are different,” said Pierce. “And they are worse, and city council has not approved the milestones and so cash has not come from the state.”
“The last numbers I saw was a negative $120 million cash flow for this year and today they are referring to $110 (million) so I don’t know what the difference of the $10 (million) is,” said Dillon.
Dillon said if they drew everything out of escrow it looks like they would be about $2 million off on June 30, and “that’s just not acceptable.”
“The President is supportive of Detroit retaining its independence,” said Bing during a late afternoon press conference.
Although the city desperately needs $80 million from the state and while Mayor Bing said they are hitting the milestones – Dillon said those funds would not come all at once.
Not the answer that Bing wanted to hear from the Democrat Andy Dillon. “Well, I don’t think anyone wants to be half pregnant. And … $30 million … when we need $80 (million) will not solve the problem,” said Bing.
Dillon said he doesn’t want to release all $80 million in case there is a take-over of the city. Dillon wants to make sure there is a reserve in order to keep essential services available to the city.
“To me it’s a reserve, I mean, we’ll evaluate as we go in terms of crisis – I mean – if I have to go to the governor and say I think we have to take-over I want a reserve so that we make certain we keep police on the streets,” he said.