Gary Brown: Detroit could run out of cash in December, plan must include layoffs

[hack89]

Source: MLive

With Detroit Mayor Dave Bing preparing to explain the city's fiscal crisis tonight in a rare televised address, Council President Pro Tem Gary Brown says the situation is even worse than anyone has let on.

Bing is expected to discuss a confidential Ernst & Young report obtained by the Detroit Free Press that suggests Detroit could run out of cash by April without steep cuts to staff and public services.

That's a grim prognosis, but according to Brown, the city actually could be unable to make payroll "as early as December."

In his speech tonight, Bing is expected to propose privatizing the city's public bus system and lighting departments, both of which have have been failing residents but reportedly cost them $100 million a year in subsidies.

Read more: http://www.mlive.com/news/detroit/index.ssf/2011/11/gary_brown_detroit_could_run_o.html

[PassingFair]

1. Great, two of my brothers work for the city. One is an EMT, the other works for the police dept.

Both of their wives are Detroit Public School teachers.

Everyone is very nervous.


:scared:

[No Elephants]

2. Woetown.

[valerief]

3. Well, just as long as the wealthy aren't taxed, that's all that matters.

:grr:

[hack89]

4. Detroit has a city income tax

for anyone that works in the city. I suspect rich people have to pay it.

[plumbob]

7. It's based on federal income tax. If you had no federal tax liability,

you have none to the city, either.

The rates themselves are: 2.5% for resident individuals; 1.25% for non-resident; and OF COURSE 1% for corporations.

As usual, corporations pay little to nothing.

http://www.detroitmi.gov/Departments/Finance/IncomeTax/CityofDetroitIncomeTaxRates/tabid/1655/Default.aspx

[hack89]

5. Detroit's problem is loss of population

same infrastructure with smaller tax base is a recipe for fiscal disaster.

[FarCenter]

9. Anyone who is wealthy has left Detroit

[valerief]

10. Whew! I was sooooooo worried about the only people who matter in the world.

As long as THEY'RE safe, nothing else matters. Nothing. Cuz that's how the world works everywhere. We 99% don't even really exist to the people who matter.

[Citizen Worker]

6. Would Detroit somehow find the money were one of the professional sports teams in need of a bailout?

I bet there wouldn't be any problem. Suffering and sacrifice is for us lesser types.

[Iliyah]

8. Soon MI

will be controlled by the dictator I mean the governor. Instead of helping and supporting the city the governor will send in the clowns I mean his cronies. The homeless rate will soar there.

I'll pray for them tho, the people of MI

[valerief]

11. And then China will buy Detroit. nt