Mayor Bing expected to unveil plan to privatize Detroit bus, lighting systems

**begingri** · November-16-11, 04:33 PM

By Steve Neavling and Matt Helms

Detroit Free Press Staff Writers

Detroit Mayor Dave Bing is expected to announce today an effort to privatize management of the city's beleaguered bus system and its troubled public lighting department, according to people who have been briefed on the mayor's sweeping plans to slash costs and stave off the state appointment of an emergency manager.

Combined, the two departments cost the city more than $100 million a year to subsidize.

Bing's office was tight-lipped about the 6 p.m. address he plans to deliver liveon television from the Northwest Activities Center but said he will address the city's fiscal crisis and service issues, including transportation and lighting.

"Mayor Bing will provide a frank assessment of the city's fiscal condition and services," mayoral spokesman Dan Lijana said Tuesday. "He will offer solutions to long-standing service problems."

Council members and restructuring experts said Tuesday that they would be skeptical of the mayor's plan unless it includes pension and health care concessions from unions, adding that's the only way for the city to avoid running out of cash.

"You can't fix the structural imbalance until you deal with the rising costs of health care and pensions," said Marcus Hudson, a local expert on restructuring financially challenged businesses and municipalities. "The city is at a point where cutting doesn't help because the city made bad financial decisions by not dealing with these union issues earlier."

The catalyst for the address is a devastating report by the Ernst & Young accounting firm, ordered by the city and paid for with taxpayer money, that shows the city's finances are so slim that even laying off 2,200 employees would delay insolvency only until July.

Continued at: http://www.freep.com/article/2011111...ighting-system

**Scottathew** · November-16-11, 04:46 PM

I'm all for this, 100%.

Although, ultimately I'd like to see DDOT and SMART combined into a regional authority.

**Tig3rzhark** · November-16-11, 05:47 PM

Originally Posted by 48091

I'm all for this, 100%.

Although, ultimately I'd like to see DDOT and SMART combined into a regional authority.

I've been looking forward to this ever since I've been riding on a bus. However, efforts have shown that hostilities still exist between the city and suburbs, and until this comes to an end, we may not live to see an efficient regional transportation authority established in southeastern Michigan.

**detroitmale** · February-17-12, 04:17 PM

I agree 48091...

**midtown313** · February-17-12, 05:53 PM

I agree 48091!!

**internet_pseudopod** · November-16-11, 06:51 PM

So the lights will be privatized. The city won't be able to pay the bills and they will be off anyway. Same for the buses, it is a money loser utilized by the poor when they don't pay enough to make a profit look for the same service cut backs.

**riviera** · November-16-11, 07:18 PM

And which private entity would feel that this would be a good investment anyway?

**szla** · November-16-11, 08:25 PM

Is Detroit allowed into Smart? Why not drop out of the transit business, accept the small millage that Smart charges and join. If cities within the tri county area can opt out why cant Detroit opt in?

**Hypestyles** · November-16-11, 08:33 PM

I hope that bus service can be radically transformed for the better. I'm not holding my breath for it to happen, but I want it to happen. I believe that a merged system will be for the better for all in the city and region in the long term, but the political and racial chasms seem insurmountable..

**antongast** · November-16-11, 08:37 PM

Originally Posted by szla

Is Detroit allowed into Smart? Why not drop out of the transit business, accept the small millage that Smart charges and join. If cities within the tri county area can opt out why cant Detroit opt in?

Because Detroit needs a totally different kind and scope of service than what SMART currently offers. There's no evidence that SMART is capable of providing Detroit with the kind of transit service it needs, and no indication that they're interested in trying. In fact, they're eliminating all their existing service inside the city limits in December, dumping all that extra ridership onto the already-overtaxed DDOT arterial routes.

**Scottathew** · November-16-11, 08:40 PM

Originally Posted by antongast

Because Detroit needs a totally different kind and scope of service than what SMART currently offers. There's no evidence that SMART is capable of providing Detroit with the kind of transit service it needs, and no indication that they're interested in trying. In fact, they're eliminating all their existing service inside the city limits in December, dumping all that extra ridership onto the already-overtaxed DDOT arterial routes.

SMART is dumping Detroit service because of budgetary issues, not because they are dis-interested, because having two systems that partially overlap and partially don't just doesn't make sense.

A combined system would be more efficient to run, and would also be more efficient to the passengers that use it, because imaginary political boundaries won't cause them to get off one bus and onto another.

I'm a suburbanite that is 100% for a combined system.

**adamjab19** · November-16-11, 08:54 PM

Did anyone catch Channel 7's 2020 spot after the speech? One point of it went like this:

Charles Pugh: "Come on John [[AFSCME union leader) we need you to come to the table sooner than next year to discuss."

John: "We will come to the table when it is time next year."

Nolan Finley: "You guys aren't going to have jobs by then, you better go now!"

This John guy was not backing down for nothing! He looked like an idiot. I know you need to stand for something but damn I say at this rate in the City of Detroit you better stand for just having a job! I guess him and his union people are going to be the first ones flushed in the new year. I say take the pay cut and if the workers don't like it they can go elsewhere for work. The city's management is fuct. So there are going to be some fuct up ways to fix it. Get on board or get out!

**antongast** · November-16-11, 09:00 PM

Originally Posted by 48091

SMART is dumping Detroit service because of budgetary issues, not because they are dis-interested, because having two systems that partially overlap and partially don't just doesn't make sense.

A combined system would be more efficient to run, and would also be more efficient to the passengers that use it, because imaginary political boundaries won't cause them to get off one bus and onto another.

I'm a suburbanite that is 100% for a combined system.

I'm not against a combined system in principle, but a combined system will still need adequate funding in order to provide adequate service. Assessing the SMART millage in Detroit won't buy anywhere near the density of coverage or service frequency that DDOT, even in its current bare-bones form, provides here. Look at how many SMART routes run through Warren or Sterling Heights and how often they run at which hours, and then take any comparably-sized chunk of Detroit and do the same thing. Detroit has orders of magnitude more service, even taking the poor schedule adherence into account. If you want to combine the systems, fair enough, but it's going to take a lot more to make it work than just getting rid of DDOT and treating Detroit like any other opt-in community with a handful of buses running through it.

As far as SMART dumping Detroit service "because of budgetary issues," that's precisely the point. It's not just DDOT that's cash-strapped. And if you think SMART providing service in Detroit "doesn't make sense," just try to squeeze yourself into a DDOT Woodward or Gratiot bus the day after those cuts go through. You can't take two high-ridership bus routes, get rid of one of them, and expect the other to pick up the slack with no additional funding.

**trotwood** · November-18-11, 03:43 PM

Originally Posted by antongast

In fact, they're eliminating all their existing service inside the city limits in December, dumping all that extra ridership onto the already-overtaxed DDOT arterial routes.

Now pardon my ignorance on current local affairs but I'm a bit confused by what's going on.
When I first heard about the proposed cuts I telephoned Smart to ask questions&voice my opinion. I was told then Smart wasn't eliminating service into the city just scaling down.I asked exactly when Smart would&wouldn't run into the city.I was told the routes I was inquiring about[[450&460)would only run during peak hours.Just to make sure I was understanding what I was hearing I asked the woman to explain to me[[as though I were an 8 year old)what peak hours were? "From when to when will these routes run through the city of Detroit"? I was told they'd run to&from dwntown Detroit from 9am-6pm. I then said "So they'll go to downtown Detroit&back again from 9 in the morning until 6 in the evening Monday-Friday? I'll be able to catch the 460 from the RO transist station&ride to downtown Detroit?" I apologized for possibly sounding like an idiot but explained I wanted to make certain I was clear. She answered me with a resounding "Yes!You'll be able to go from RO transit to dwntown Detroit from 9-6 M-F". I called once more after that a few days later&received the same answer.
I log on here&read that Smart is[[in essence)eliminating service to the city altogether, so I called Smart again.This time I'm told buses will only run in&out of the city of Detroit from 6-9am&3-6pm.
What's going on??? Why is this being done? Someone else said it's budget related. Wasn't the purpose of the last millage[[which I voted in favor of) meant to go toward[[in part)keeping Smart service running in it's entirety????
Again I apologize if I'm missing something here.

**antongast** · November-20-11, 01:34 AM

Originally Posted by trotwood

Wasn't the purpose of the last millage[[which I voted in favor of) meant to go toward[[in part)keeping Smart service running in it's entirety????

What you voted for was a renewal of the existing millage at the previous rate, not a new millage or an increase. Property values have been dropping over the last several years, so the same millage rate is yielding less revenue than it used to.

**trotwood** · November-20-11, 11:27 AM

Originally Posted by antongast

What you voted for was a renewal of the existing millage at the previous rate, not a new millage or an increase. Property values have been dropping over the last several years, so the same millage rate is yielding less revenue than it used to.

Yes I knew it was a renewal of the exsiting millage. For some reason I thought renewing would ensure Smart continued to offer full service in the counties in which it[[the renewal)passed.
I know times are tight across the board but it doesn't seem Smart's plan is going to work well given the fact that DDOT is an already severly strained system.
Thanks for responding.

**Scottathew** · November-16-11, 09:09 PM

I agree funding would be an issue. I'd like to see the same millage charged across the entire region. Although Detroit would get more service and routes, I wouldn't want them charged more. Some folks may call that subsidizing Detroit buses, but I wouldn't wholly agree with that. Having a solid public transit system benefits riders, businesses, and motorists too. It benefits motorists because there would be less traffic and wear and tear on the roads if more people were taking buses.

Also, mass transit is much more environmentally friendly than using individual vehicles, which is another shared benefit for everyone, regardless of whether or not you use the system.

Now, convincing my fellow suburbanites to to fund such a system, that might take some work. Some folks think like me. While other folks are narrow minded and don't realize that even if they don't use the system that there are still benefits to it.

**Dexlin** · November-17-11, 03:42 AM

After hearing the weak tea Bing offered last evening, the city is toast. The EFM is already being cooked up, and Snyder when asked about the speech implied that. You didn't have to read between the lines too much to see that Bing begging for reinstatement of a higher level of renvenue sharing [[*snort* yeah right, not with this tea party legislature) was when Snyder made the decision that Bing doesn't have the will to do what is needed. The police and fire pay cuts were particularly odious, not because they went to far, but because you're only talking $12 million for next year which wouldn't even put a dent in the deficit, and on top of that would only kill moral and push people into retirement or resignation.

This was not a serious speech. If Bing's fiscal plan is almost exclusively dependent upon grabbing back money from the legislature, a self-governed Detroit was put out of reach, last evening. Goodbye, mayor; it was nice knowing you. lol

**townonenorth** · November-17-11, 09:09 AM

I watched that speech and was amazed at the lack of... well, everything. Bing's an empty shell. How he managed to keep Bing steel afloat is amazing to me. I guess that the way it is when you are propped up by the Big 3 then the legs are kicked out from under you.

**jt1** · November-17-11, 09:34 AM

As someone that has neither a job with or a pension from the city I'm really stuggling to see why an EFM would be a bad thing for me.

As I see it the EFM:

1. May make sweeping contract changes or void contracts. It's unfortunate for those that lose there jobs it should not reduce the services or quality of services I receive

2. Services may be changed but, with a few exceptions, I'm not sold there would be any negatives to that

3. There would be a single person that could make decisions as opposed to the non-sensical bureacracy in the city. Sure, there may be some wrong decisions but at least something would be decided and done. I'm willing to risk a bad decision or two as opposed to maintaining the status quo.

4. Yes, this takes some decisions out of the hands of voters but it is clear our elected officials, and often our residents, have made the decisions that have gotten things to this point.

So can anyone tell me how, as a resident with no pension or job with the city how I will be any more negatively impacted compared to how the city is run today?

**Novine** · November-17-11, 10:50 AM

"So can anyone tell me how, as a resident with no pension or job with the city how I will be any more negatively impacted compared to how the city is run today?"

There will be a lot fewer employees delivering fewer city services than today. Maybe you won't notice a difference. But I expect that many people will notice the difference. There will be a lot of unhappy employees too. I expect many people to notice that as well.

Your taxes and fees may go up. Most EFMs haven't relied solely on cutting services to bring revenues and expenditures in line. Let's be real, Detroit's been providing its current level of service through deficit financing. That's going to end. That means fewer services at the same or greater cost to taxpayers.

**Danny** · November-17-11, 11:08 AM

KING BING has gotten Detroit and its city unions right where he wants it. In his corporate hands. Now its time for them to surrender their services to him or be destroyed!

I can see the dictatorship coming and BING will be the tyrant!

Detroit city services will be privatized. Ghettoes gentrified. Low-income folks and poor getting evicted from their Detroit ghettohoods. A fast growing yuppified Detroit is coming. OCP is here!

**swingline** · November-17-11, 11:43 AM

Originally Posted by Danny

KING BING has gotten Detroit and its city unions right where he wants it. In his corporate hands. Now its time for them to surrender their services to him or be destroyed!

I can see the dictatorship coming and BING will be the tyrant!

Detroit city services will be privatized. Ghettoes gentrified. Low-income folks and poor getting evicted from their Detroit ghettohoods. A fast growing yuppified Detroit is coming. OCP is here!

Good post Danny.

I'm not sure that "gthettoes" is spelled with an "e" though.

**jt1** · November-17-11, 11:33 AM

Originally Posted by Novine

"So can anyone tell me how, as a resident with no pension or job with the city how I will be any more negatively impacted compared to how the city is run today?"

There will be a lot fewer employees delivering fewer city services than today. Maybe you won't notice a difference. But I expect that many people will notice the difference. There will be a lot of unhappy employees too. I expect many people to notice that as well.

Your taxes and fees may go up. Most EFMs haven't relied solely on cutting services to bring revenues and expenditures in line. Let's be real, Detroit's been providing its current level of service through deficit financing. That's going to end. That means fewer services at the same or greater cost to taxpayers.

Good points about taxes and services that may not impact me but may impact others.

As far as unhappy employees I don't get the sense that morale is that good to start with. Certainly it may be impacted but I'm curious how much lower it can get.

**SWMAP** · November-17-11, 11:09 AM

There will be a lot more people out of work! And for many of them, a work experience in the beauracracy that is the City means that they will never get another job. They may be too old; or skills too old and/or too narrow to compete in this job market.

Think about two more thousand people out of work in this city. It will be bad.