Detroit Drifts Towards Budget Armageddon

As the city runs out of cash, Detroit leaders are balking at a restructuring deal proposed by state officials to establish a joint advisory board to address the city’s financial troubles without a state-appointed emergency manager.

Steven Yaccino reports that a number of city officials, including Mayor Dave Bing, have voiced their opposition to the "cooperative" solution proposed by Michigan state officials, as Detroit moves perilously close to running out of cash.

In an effort to head off the need for a a state-appointed emergency manager, "[t]he agreement proposed Tuesday, which must be signed by the mayor and the review team, would establish a nine-member Financial Advisory Board that would have authority to approve budgets, the sale of assets and changes to contracts, including collective bargaining agreements with the 48 unions that represent city workers," writes Yaccino.

While city leaders acknowledge that drastic measures must be taken to avoid fiscal collapse, they object to the extent to which the city forfeits control in the proposed agreement. "The offer, Mr. Bing said in a statement, 'circumvents the role and power of the City Council as the legislative body, waives the ability of elected officials to contest any aspect of the agreement, and dismisses the unprecedented effort and concessions made by the City's labor unions to avoid an economic catastrophe,'" reports Yaccino.

With a state review team scheduled to deliver recommendations to the governor on a path forward by March 28, the time frame for agreement by city leaders on emergency management measures is quickly closing.

Full Story: Detroit Officials Criticize State’s Proposal for Fiscal Oversight Panel


Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $199
Planetizen Courses image ad

Planetizen Courses

Advance your career with subscription-based online courses tailored to the urban planning professional.
Starting at $14.95 a month
Wood necklace with city map

City Necklaces

These sweet pendants are engraved on a cedar charm with a mini map of selected cities. The perfect gift for friends and family or yourself!
Book cover of Contemporary Debates in Urban Planning

Contemporary Debates in Urban Planning

Featuring thought-provoking commentary and insights from some of the leading thinkers and practitioners in the field.