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.

1 minute read

March 15, 2012, 6:00 AM PDT

By Jonathan Nettler @nettsj


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.

Tuesday, March 13, 2012 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight