Bing Calls for Emergency Financial Manager

**Scottathew** · November-03-11, 07:18 AM

http://www.freep.com/article/20111103/NEWS01/111030537/Mayor-Dave-Bing-Detroit-may-need-emergency-manager?odyssey=tab|topnews|text|FRONTPAGE

The City of Detroit is sliding closer to insolvency and may soon require the intervention of a state-appointed emergency manager, Mayor Dave Bing told council members behind closed doors, according to sources who were in the meeting.

As pension and health care costs continue to skyrocket, Bing said, the city is quickly running out of money.

Unions, which took 10% pay cuts last year, have refused to accept deep cuts in health care and pension costs.

The situation is dire, said mayoral spokesman Dan Lijana.

"If we don't get a handle on those costs, we can't solve the city's financial problems," Lijana said Wednesday. "We've cut the budget to the bone."

**R8RBOB** · November-03-11, 07:36 AM

I suppose we could spend time bashing Bing but he is not worth the time. After the $9 million dollar snafu and the problem with the buses, I think it is well known that Bing is way over his head trying to run a dysfunctional city like Detroit. The baller from Franklin thought he could stroll into Detroit and be its savior and now he is ready to cede control to a EM. I find this disgraceful because a leader shouldn't be so willing to surrender and that's what Bing is proposing to do. I wasted my vote not once but twice.

**Scottathew** · November-03-11, 07:55 AM

Originally Posted by R8RBOB

and now he is ready to cede control to a EM.

WJBK was speculating that the EFM would be Bing. Essentially he wants to remain in place but have unilateral decision making power.

**WWJNewsradio950** · November-03-11, 07:59 AM

Here is the "source"--Bing's one-on-one interview with Vickie Thomas Wednesday morning.

http://detroit.cbslocal.com/2011/11/...t-may-need-efm

And, to be clear, Mayor Bing will have to ask the state treasurer to look at the city's books; Governor Snyder [[or his staff/appointees) can't just show up and start the process.

lilpup · November-03-11, 08:00 AM

I think Bing would be in for a rude awakening if the time comes for an EFM. No way should he be given that role as the sitting mayor. Former city CFO Joe Harris has been the EFM for Benton Harbor for some time now and is almost done with that task - he's infinitely more qualified for the EFM role than Bing is.

**R8RBOB** · November-03-11, 08:08 AM

Originally Posted by 48091

WJBK was speculating that the EFM would be Bing. Essentially he wants to remain in place but have unilateral decision making power.

Dave Bing is such a hilarious character. He and the City Council have already cut city services to the bone and now with added powers he want to end city services since you can only get so many cuts off a piece of steak.

**Meddle** · November-03-11, 08:42 AM

How much have he and/or the clowncil cut their own salaries and expenses? Are they still all driving city owned cars and using body guards?

**Detroit500** · November-03-11, 09:38 AM

If i'm not mistaken Bing donates his entire salary to DPD.

**Flintoid** · November-03-11, 10:03 AM

You're all being ridiculous. Bing came in with huge deficits, illogical union contracts, and so many departments that were mismanaged that you cant count them all. You expect him to fix that in 2 and a half years?The $9.2 million lost was from decisions in the human services department made prior to January 31. The head of the department at the time, fired by Bing due to incompetence. The mayor has managed to regionalize cobo, regionalize water, cut costs [[sadly not enough yet) and actually begin to craft a plan to govern our city logically. It;s easy for us or council to just sit on the sidelines and monday morning quarterback what is clearly an incredibly hard job, but the fact is every decision is a lot more complicated than the media or council or the unions make it out to be. I would be supportive of a Dave Bing EFM because the city needs someone with that kind of power. We need to be able to change salaries and benefits or privatize services, but you cannot do that with existing contracts. Dave Bing as an EFM would be a blessing. The council can sit on their high horse and pretend that it would be Armageddon, but that's easy to do when you're not the one making the tough decisions. Mayor Bing has done a fantastic job in these two years, and I hope there are many more to come.

**Danny** · November-03-11, 10:05 AM

OH NO!!!!! City of Detroit going under receivership! I knew its going to happen. We Doomed, DOOMED!!

**R8RBOB** · November-03-11, 10:18 AM

Originally Posted by Flintoid

You're all being ridiculous. Bing came in with huge deficits, illogical union contracts, and so many departments that were mismanaged that you cant count them all. You expect him to fix that in 2 and a half years?The $9.2 million lost was from decisions in the human services department made prior to January 31. The head of the department at the time, fired by Bing due to incompetence. The mayor has managed to regionalize cobo, regionalize water, cut costs [[sadly not enough yet) and actually begin to craft a plan to govern our city logically. It;s easy for us or council to just sit on the sidelines and monday morning quarterback what is clearly an incredibly hard job, but the fact is every decision is a lot more complicated than the media or council or the unions make it out to be. I would be supportive of a Dave Bing EFM because the city needs someone with that kind of power. We need to be able to change salaries and benefits or privatize services, but you cannot do that with existing contracts. Dave Bing as an EFM would be a blessing. The council can sit on their high horse and pretend that it would be Armageddon, but that's easy to do when you're not the one making the tough decisions. Mayor Bing has done a fantastic job in these two years, and I hope there are many more to come.

I suppose we are all entitled to our own opinions.

**MikeyinBrooklyn** · November-03-11, 10:42 AM

Detroit might need an EFM, but it should be someone entirely outside local politics. Not kidding, I'd put in John Engler. We need someone who doesn't need or want to make friends, unafraid to wield the axe. A city of 700,000+ people has more employees than the same city did, population 2M. I would hope that buyouts and attrition can take care of a lot of it, but Detroit needs many fewer workers. Seriously, Detroit has a level of services corresponding to having very few employees anyway, so why not make them pair up? Crumbling streets and sidewalks [[except our wonderful ADA compliant corners), unmaintained parks, retrenched and minimal policing, social services that don't keep kids safe. It doesn't take a lot of workers to not provide services. But back to the larger point, an EFM should not be Bing or anyone in current or recent Detroit or Wayne County government.

**Scottathew** · November-03-11, 10:47 AM

Originally Posted by MikeyinBrooklyn

A city of 700,000+ people has more employees than the same city did, population 2M. I would hope that buyouts and attrition can take care of a lot of it, but Detroit needs many fewer workers.

Yup.

Everything about Detroit is DESIGNED to be inefficient. Why? Because inefficiency "creates" jobs.

**Meddle** · November-03-11, 10:54 AM

Originally Posted by Flintoid

You're all being ridiculous.

OK, Mrs. Bing

**Novine** · November-03-11, 11:33 AM

It's been the Council pushing Bing to move faster and cut deeper since he's been elected. Bing has dithered and mismanaged for most of that time.

**Wesley Mouch** · November-03-11, 11:34 AM

Originally Posted by Flintoid

You're all being ridiculous. Bing came in with huge deficits, illogical union contracts, and so many departments that were mismanaged that you cant count them all. You expect him to fix that in 2 and a half years?The $9.2 million lost was from decisions in the human services department made prior to January 31. The head of the department at the time, fired by Bing due to incompetence. The mayor has managed to regionalize cobo, regionalize water, cut costs [[sadly not enough yet) and actually begin to craft a plan to govern our city logically. It;s easy for us or council to just sit on the sidelines and monday morning quarterback what is clearly an incredibly hard job, but the fact is every decision is a lot more complicated than the media or council or the unions make it out to be. I would be supportive of a Dave Bing EFM because the city needs someone with that kind of power. We need to be able to change salaries and benefits or privatize services, but you cannot do that with existing contracts. Dave Bing as an EFM would be a blessing. The council can sit on their high horse and pretend that it would be Armageddon, but that's easy to do when you're not the one making the tough decisions. Mayor Bing has done a fantastic job in these two years, and I hope there are many more to come.

Great post.

Like a Phoenix, we shall rise from the ashes.

**detmsp** · November-03-11, 11:48 AM

I have begun to wonder if maybe this situation is a bit like bankruptcy for GM. No one wanted it. They said it would be the death of the company. But a couple of years later, things don't look so bad do they? Maybe we really do need someone to come in and tear things apart so that they can be put back together in a new way... a way that paves the path to long term prosperity.

**DetBill** · November-03-11, 11:53 AM

Charles Pugh today in the Free Press states Detroit doesnt need a emergency manager as they can solve the problems themselves. Mr. Pugh doesnt make any sense, He says they can solve the problems themselves, yet , as usual , council block Bing on most things.. Then Pugh says the first thing to do is negotiate more with the unions ??? Hello???
What do you think Bing has done,, they have been negotiated down to the point where they wont anymore,, Where has he been??? This guy really needs to do his homework. Bing has made some mistakes but I think overall he is miles ahead of KingKwame and his gang of thieves. Bing has enormous obstacles to overcome, mostly built up by previous administrations, as well as a major sucker punch with the economic state of the city and state in the last several years. No matter what he does he gets major criticism.. Id luv to see the person who can solve all of these issues,, There isnt one. I dont think there is anyone out there who can deal with this situation better than Bing, [[ that would run for mayor that is)

**Scottathew** · November-03-11, 12:00 PM

Originally Posted by DetBill

Charles Pugh today in the Free Press states Detroit doesnt need a emergency manager as they can solve the problems themselves. Mr. Pugh doesnt make any sense, He says they can solve the problems themselves, yet , as usual , council block Bing on most things.

Pugh, who went through bankruptcy, is not who I would go to for budgeting advice, nor would I have voted for him because of his own financial insolvency.

**R8RBOB** · November-03-11, 12:02 PM

Here's the thing: Detroit don't need an emergency manager, it needs a bailout plain and simple. Many of us have heard the Republicans talking point of "we have a spending problem" so much we really believe that Bing or some EM can enact so many spending cuts or layoffs that Detroit would be back in the Black. Not going to happen. Detroit has too much generational debt. It is time that Detroit is treated like General Motors circa 2009.

**Scottathew** · November-03-11, 12:10 PM

Originally Posted by R8RBOB

Here's the thing: Detroit don't need an emergency manager, it needs a bailout plain and simple. Many of us have heard the Republicans talking point of "we have a spending problem" so much we really believe that Bing or some EM can enact so many spending cuts or layoffs that Detroit would be back in the Black. Not going to happen. Detroit has too much generational debt. It is time that Detroit is treated like General Motors circa 2009.

But just a bailout won't do it though. They need to fundamentally go through the entire government and eliminate waste, get out businesses they don't belong in, and get fair labor contracts.

1. Eliminate Detroit Public Lights; put all buildings on DTE grid
2. Take D-DOT and DPM and make them part of an autonomous regional authority combined with SMART
3. Eliminate other unneeded departments. For example, here are some REAL city department names from Detroit's website:

Culture
Detroit Film Office
Detroit Workforce Development Department
Health & Wellness Promotion Department
Neighborhood City Halls [[now Community Access Centers)

Guess what, if you can't fund this kind of stuff, then you need to cut it.

**R8RBOB** · November-03-11, 12:17 PM

Originally Posted by 48091

But just a bailout won't do it though. They need to fundamentally go through the entire government and eliminate waste, get out businesses they don't belong in, and get fair labor contracts.

1. Eliminate Detroit Public Lights; put all buildings on DTE grid
2. Take D-DOT and DPM and make them part of an autonomous regional authority combined with SMART
3. Eliminate other unneeded departments. For example, here are some REAL city department names from Detroit's website:

Culture
Detroit Film Office
Detroit Workforce Development Department
Health & Wellness Promotion Department
Neighborhood City Halls [[now Community Access Centers)

Guess what, if you can't fund this kind of stuff, then you need to cut it.

I don't disagree with you but any kind of reorganization like Detroit Public Lights is going to require funds and Detroit don't have it.

**river rat** · November-03-11, 12:18 PM

Bailout! Hell no. Detroit needs to declare bankruptcy, because it is. The court needs to appoint a bankruptcy master who will then void all obligations and debts and pay the creditors on a rational basis. Of course, this will mean a lot of pain for a lot of people [[think Greece). The bond holders will get a few pennies on the dollar. The mayor and city council will not be paid and will line up with all the creditors. Everyone will take a big haircut. All the years of financial mismanagement and corruption will fall on the people that deserve it; the electorate of the City of Detroit. We are the ones who elected the buffoons that brought us to where we are. This thread will be replete with screams about the Republicans and inadequate state funding, the economy, the needs of the poor, crime, bad infrastructure, on and on....

The problem is clear and it is us..

**Scottathew** · November-03-11, 12:19 PM

Originally Posted by R8RBOB

I don't disagree with you but any kind of reorganization like Detroit Public Lights is going to require funds and Detroit don't have it.

That is true. That particular item will require capital because DTE won't want to just takeover Detroit's screwed up, unreliable system.

I've had to explain to my wife several times why no traffic lights were working downtown and why some buildings, like my building, had power, while all the government buildings went without.

**rb336** · November-03-11, 01:00 PM

Originally Posted by MikeyinBrooklyn

Detroit might need an EFM, but it should be someone entirely outside local politics. Not kidding, I'd put in John Engler.

the same engler who gave away the state's money to his cronies? who spent us into a major hole his last year in office and set up policies to make it impossible for any successor to succeed? THAT john engler? what are you smoking?