Bing Minimizes cuts so he can Insure an EFM [[Bing) takes Control

[jhartmich]

One way to insure that pay/benefit cuts happen and unions are thwarted is to keep deficits high and keep reform to a minimum. Robert Bobb knew this and that's why he could Not improve DPS; he had to keep chaos going to derail DPS in an effort to move to a capitalist system [[for profit) which is the Charter School system. Mayor Bing is doing the same with the city.

Has anyone noticed that City Council's proposals are "draconian maximas" in the sense that they know that if they don't trump/surpass Bing's proposals that they will be out of a job when Detroit is taken over by an EFM.

From The Detroit Citizen newspaper [[Sun, Nov, 27, 2011):

To avoid an EM, City Council also proposed, Nov. 21, eliminating subsidies to the Charles H. Wright Museum of African American History and the Detroit Institute of the Arts, the Detroit Zoo, Detroit Economic Growth Corporation, Eastern Market and Detroit Public School; outsourcing the Detroit Department of Transportation; increasing taxes on residents and nonresidents, sharing health department services; and getting the $15 million owed to the city on an electric bill from the cash-strapped Detroit Public Schools, which is currently under emergency management with a growing deficit of over $350 million.

Ummmm...am I having a brain fart or was it these institutions that council members fought tooth and nail to save just a couple years ago?

Now that councils job is on the line, everything they ever fought for is thrown under the bus to save THEIR JOBS!

[corktownyuppie]

One way to insure that pay/benefit cuts happen and unions are thwarted is to keep deficits high and keep reform to a minimum. Robert Bobb knew this and that's why he could Not improve DPS; he had to keep chaos going to derail DPS in an effort to move to a capitalist system [[for profit) which is the Charter School system. Mayor Bing is doing the same with the city.

Has anyone noticed that City Council's proposals are "draconian maximas" in the sense that they know that if they don't trump/surpass Bing's proposals that they will be out of a job when Detroit is taken over by an EFM.

From The Detroit Citizen newspaper [[Sun, Nov, 27, 2011):

To avoid an EM, City Council also proposed, Nov. 21, eliminating subsidies to the Charles H. Wright Museum of African American History and the Detroit Institute of the Arts, the Detroit Zoo, Detroit Economic Growth Corporation, Eastern Market and Detroit Public School; outsourcing the Detroit Department of Transportation; increasing taxes on residents and nonresidents, sharing health department services; and getting the $15 million owed to the city on an electric bill from the cash-strapped Detroit Public Schools, which is currently under emergency management with a growing deficit of over $350 million.

Ummmm...am I having a brain fart or was it these institutions that council members fought tooth and nail to save just a couple years ago?

Now that councils job is on the line, everything they ever fought for is thrown under the bus to save THEIR JOBS!

Just wanna make sure I understand...is your position that Bing is refusing to demand concessions and keep deficits high in an attempt to kill the union in the long run by bringing in an EFM?

Cuz if that's the case, then you can probably blame Kwame and Archer, too. The reality of the matter is that I don't forsee any of the unions making concessions at any level. While we and the press bicker over whose plan is better -- the mayor's vs. the city council's -- note that union reps are saying no to both plans.

So, in that sense, aren't they all to blame for the inevitable EFM?

[Dexlin]

Boy, is he going to be surprised when he finds out he won't be the EFM...and he'll be the only one surprised. What a delusional cad.

[Scottathew]

Boy, is he going to be surprised when he finds out he won't be the EFM...and he'll be the only one surprised. What a delusional cad.

I get the same feeling. Bing knows an EFM is the only politically viable option. Bing thinks he will ge the job. However, I feel that Snyder won't give the leader of a broken government MORE power.

The sad thing is that the Mayor and Council won't do what is needed. Instead "the man" will have to come in and do it for them, further perpetuating the victim-mentality, when in fact Detroit residents are victims of the people they elected, not of the state government that is being forced to take it over.

[compn]

yeah, i dont see bing being named as EFM.

[Dexlin]

I honestly don't see why the media [[and it seems a few people have taken the talking point hook, line, and sinker) is getting away with this false equivalency. The mayor is clearly in the wrong, here, but we keep getting this bullsh%t talking point that they are both to blame. The city council has the right idea; they've had the right idea for at least a year, now, and Bing is the one that keeps thwarting attempts at real and difficult change. This is one issue where the city council is right, and the mayor is wrong. Period. Bing is relying on completely unrealistic scenarios to avoid immediate insolvency. How is anyone to pretend that they are both wrong, or that they are both equally wrong? Bings entire rescue rests on the unrealistic scenarios of extracting immediate union concessions and hundreds-of-millions of dollars from Lansing. Neither of those can realsitically happen within the two months alloted. It's impossible. The city council are proposing ridiculously unpopular things, but things that are actually possible. What Bing wants is impossible.

I don't know if this is because he seriously believes he can get the money from Lansing and the unions, or if this is his way of cynically forcing the city into the hands of the state, but either way, he's dead wrong and has handled this terrible. He doesn't deserve the EFM job after this shameful reality show he's starred in.

I honestly think Snyder is going to hand the city over to the likes of Penske, or some former DMC head, or maybe even Archer. No one is going to be happy.

[corktownyuppie]

. The city council are proposing ridiculously unpopular things, but things that are actually possible.

I was always under the impression that the unions didn't like the council's approach either. Am I mistaken?

No one is going to be happy.

I totally agree.

[Dexlin]

I was always under the impression that the unions didn't like the council's approach either. Am I mistaken?

Whether they like it or not, they can be layed off with a 60-day notice. Period. Trying to reopen multiple contracts right now, and have negotiations done by February ain't gonna happen. It's as simple as that. Again, Bing is proposing something that isn't going to realistically happen in the time he needs it to, and the council is proposing things that will be wildly unpopular but that could happen tomorrow.

BTW, the happiness comment was just an observation. I totally agree, that shouldn't be the goal, and that's another thing given the situation that'd be impossible, anyway.

[Zacha341]

Yep, the unions are going to go thru the same thing DFT did regarding DPS. How they thought they were going to escape the extreme cuts coming? It's gonna be worse as it's going to be happen faster withstanding the 60 day notice. Which will get reduced to 30 days as it did with DPS as a concession the union had to give. This whole thing is going to be something else...

Whether they like it or not, they can be layed off with a 60-day notice. Period. Trying to reopen multiple contracts right now, and have negotiations done by February ain't gonna happen. It's as simple as that. Again, Bing is proposing something that isn't going to realistically happen in the time he needs it to, and the council is proposing things that will be wildly unpopular but that could happen tomorrow.

BTW, the happiness comment was just an observation. I totally agree, that shouldn't be the goal, and that's another thing given the situation that'd be impossible, anyway.

[corktownyuppie]

...but I'm not sure the goal right now is to make people happy.

[jhartmich]

Good posts Dexlin.

I agree with you that Bing's expectations are so unrealistic that they can't be given much weight as to being serious. When someone throws out seemingly unrealistic plans, and let's not forget that NOTHING has really been done in the past two years, it makes you believe that simply removing deficits is not the only agenda here.

I believe what's happening on an international level is also occurring at state and municipal levels of government. To get shocking change when moving government responsibilities from public to the for-profit private sector, you have to let things get bad...very bad. Seems to have happened in the edu-business field. Who has benefited from the consistent 10,000+/year loss in students? Bob Thompson and the rest of the edu-business crowd. Who will do the jobs of the 1,000 to 2,500 jobs in the city of Detroit that will be eliminated? The private sector for-profit. It would be a hard sell to do these things if all was rosy.

[jhartmich]

P.S. I disagree that it won't be Bing as EFM. I think he has a 50/50 shot. I think Snyder likes him and if sells a good story that he has tried everything but those "damn unions won't budge" story, he might be the man. I think he would like to be known as The Savior of Detroit. We'll soon see...

[Lowell]

P.S. I disagree that it won't be Bing as EFM. I think he has a 50/50 shot. I think Snyder likes him and if sells a good story that he has tried everything but those "damn unions won't budge" story, he might be the man. I think he would like to be known as The Savior of Detroit. We'll soon see...

I think the odds are higher in favor of Bing. His selection will somewhat insulate Synder against anti-democratic outcries, hey you elected him, and undermined the charge of 'bringing an outsider', although some have argued that Bing is an outsider. Bing has pretty well carved out his stand particularly vs. the unions that the Republicans in Lansing want to hear. After him only Joe Harris seems a likely the choice. He understands the city of Detroit and its budget better than anybody else and sliced up Benton Harbor to Lansing's liking.

[professorscott]

No matter who comes in as EFM - and that is certain to happen - I think the bigger question is, can Detroit be saved from receivership at all? What can an EFM do - even if the "new" EFM law stands, which it might not - that will be enough to prevent some sort of municipal bankruptcy? Detroit, even if it stops operating every single department right now, even if it lays off every police officer and firefighter and bus driver and bureaucrat, doesn't bring in enough money to pay bills it already owes for things which were done [[or agreements which were made) in the past.

I hope I'm wrong, but I don't think I am.

[R8RBOB]

No matter who comes in as EFM - and that is certain to happen - I think the bigger question is, can Detroit be saved from receivership at all? What can an EFM do - even if the "new" EFM law stands, which it might not - that will be enough to prevent some sort of municipal bankruptcy? Detroit, even if it stops operating every single department right now, even if it lays off every police officer and firefighter and bus driver and bureaucrat, doesn't bring in enough money to pay bills it already owes for things which were done [[or agreements which were made) in the past.

I hope I'm wrong, but I don't think I am.

I think it is a foregone conclusion that Detroit will have to file for bankruptcy via the state. The reason why no one wants bankruptcy is that every city, town, county in the state will be on the hook to bail out the 18th largest city in the United States when that happens. A EM can cut and cut and cut and cut but.....as long as no money is coming in and the EM will need to spend money to operate the city, Detroit will never get out of the hole.

[Zacha341]

Well, whoever the EFM is, they will be well paid and allowed to bring on their own additionally well paid assistants [[posse) to 'reduce' expenditures.

[skyl4rk]

I have an idea: the COD should do Bing's cuts PLUS the Council's cuts.

That might extend the collapse a few months.

[Wesley Mouch]

I'd like to entertain the possibility for just a brief moment that perhaps Bing [[and even Snyder) might actually be sincere.

It is possible to have nascent agendas, and still do something good. [[In this case, try to right the ship of finance in Detroit.)

Humor me the occasional lashing out against those who see conspiracies everywhere. Maybe they're just trying to do their best.

What's best for Detroit?

[detroitpride313]

I'd like to entertain the possibility for just a brief moment that perhaps Bing [[and even Snyder) might actually be sincere.

Yes, I agree. I feel that Bing is sincerely trying to do his best in handling this tough situation.

[stasu1213]

I believe that council is trying to save their jobs. It appear to me that this council is making Monica Conyer's council look like the once savior of the city

[coracle]

Until the population losses are stopped and reversed there is never going to be a lasting financial solution generated by the City. If the drain of residents over the next 20 years continues at the same rate as the last 10 years [[which was 25%" per 10 years) by 2030 the population will be 400,000 who will still need predominantly the same services for the area that the current 713,000 can't afford today. Where will the money come from? I'm sure the current 11,0000 Public Sector Workers won't allow themselves to be reduced to 6000. The pensions of their predecessors must also continue to be paid at the same time. I can't see any solution other than re-population and an influx of Private Sector jobs.

[313WX]

Until somebody comes up with a solution to Detroit's population losses there is never going to be a lasting financial fix generated by Detroiters. If the drain on residents over the next 20 years is allowed to continue at the same level as the last 10 years [[which was 25%" per 10 years) by 2030 the population will be

Right, it'll be dead.

And if anything, this financial crap may even acclerate the population decline further if not handled tactfully. That's why the claims that such as "If a system is broke, it needs to be completely overhauled" are full of bunk, and these folks don't have any clue how government and economics works. A government and municipality is not a small business, especially a government and municipality as big as Detroit.

Detroiters, those who live in 95%-98% of the rest of the city outside downtown, are sick of the crap and I'm not sure what person expects them to put up with it too much longer.

The city needs to find a way to increase residents and generate revenue without burdening the residents who are already here and are burdened enough.

*Lobby to reinstate the residency requirement [[state-level). There should also be something arranged where the city can do a frequent audit of sorts on these folks to make sure they are in fact residing at their residents in the city.
*Eliminate property tax loopholes
*Eliminate tax credits for corporations in downtown [[if they're truly dedicated to bringing back downtown, let them do it on their own).
*Fire 60% of all employees at CAYMC. I'm referencing the redundant administrative workers.
*Eliminate two of the council seats.
*Cut their salairies by 60%, and elimnates all the perks such as private vehicles and security.
*Keep the income tax for those who live in the city the same and raise them for those who work in the city but live outside the city to 3.5%.
*Place a ban on anymore suburban development, unless all the already developed land is occupied [[state-level)
*Give away city-owned property for free and forgive past tax liabilities.
*Completely outsoure the accounting department to Paychex and a Big 4 Accounting Firm.
*Put in place a maximum weight limit for Detroit police officers and require that only so many work at the police precinct at any given time while the rest are out patrolling the streets [[by foot or in cruister).
*Instead of sending people to jail or fining them for drug posession, make them work without pay for the city during the duration of their sentence.
*

[corktownyuppie]

Right, it'll be dead.

And if anything, this financial crap may even acclerate the population decline further if not handled tactfully. That's why the claims that such as "If a system is broke, it needs to be completely overhauled" are full of bunk, and these folks don't have any clue how government and economics works. A government and municipality is not a small business, especially a government and municipality as big as Detroit.

Detroiters, those who live in 95%-98% of the rest of the city outside downtown, are sick of the crap and I'm not sure what person expects them to put up with it too much longer.

The city needs to find a way to increase residents and generate revenue without burdening the residents who are already here and are burdened enough.

*Lobby to reinstate the residency requirement [[state-level). There should also be something arranged where the city can do a frequent audit of sorts on these folks to make sure they are in fact residing at their residents in the city.
*Eliminate property tax loopholes
*Eliminate tax credits for corporations in downtown [[if they're truly dedicated to bringing back downtown, let them do it on their own).
*Fire 60% of all employees at CAYMC. I'm referencing the redundant administrative workers.
*Eliminate two of the council seats.
*Cut their salairies by 60%, and elimnates all the perks such as private vehicles and security.
*Keep the income tax for those who live in the city the same and raise them for those who work in the city but live outside the city to 3.5%.
*Place a ban on anymore suburban development, unless all the already developed land is occupied [[state-level)
*Give away city-owned property for free and forgive past tax liabilities.
*Completely outsoure the accounting department to Paychex and a Big 4 Accounting Firm.
*Put in place a maximum weight limit for Detroit police officers and require that only so many work at the police precinct at any given time while the rest are out patrolling the streets [[by foot or in cruister).
*Instead of sending people to jail or fining them for drug posession, make them work without pay for the city during the duration of their sentence.
*

I think all of these ideas are good ones. I'm not a municipal expert or a city manager-in-training, but they sound reasonable to me as a layperson.

The problem is that I don't believe one can make all these changes without having someone with authority to break the whole thing down and start over. No one party is going to be willing to sacrifice so much unless they know that everyone else is doing it.

The accounting department will not be cool with being liquidated unless they know that DPD will have to change their work rules who won't be ok with doing so unless they know that 2 council seats will be eliminated and the remaining councilmen won't take a paycut unless they know that the commuting suburbanites will get a tax hike, etc. etc. etc.

No one entity wants to be the first to take the cuts. This isn't any different than real estate development in downtown Detroit. Most private developers don't want to rehab a building on an abandoned block unless they know that other developers will pick up other buildings on the same block. This is why Dan Gilbert's interest in Detroit is so crucial. He can single-handedly buy up 80% of the block and redevelop it,. Not only is his contribution felt with each completed project, but he can also attract other private investors because no one has to feel like they are the "fist ones out there with their balls hanging in the wind."

If I'm the union head of 300 city employees, there's NO WAY I would agree to taking cuts unless I knew that everyone else was, too. It's political suicide.

So the only way you get it to happen is for one person to have the authority to do it all at once. That way, people can do what need to be done while placing the political cost on someone else.

I go back to the Pontiac argument. People resisted combining the city and county police departments like crazy. And now?

The change also frees up deputies from the time-consuming chores of processing arrests, keeping more officers on the streets. Before, an arrest required two hours of paper work and booking procedures. Now, deputies in Pontiac drop the newly arrested off at the Oakland County Jail, where staff do the booking.

"We never saw police," he said. "Now, they're there all the time. You see them driving through the neighborhood."

I don't like the idea of Lansing sending in an EM. But I do wish one person could have the power to make these necessary overarching changes.

Yes we will lose residents in the process. Yes, the cuts will piss everyone off.

But in the long run, I'd like to be left with a city that is:

- Smaller geographically, so it's more efficient. [[It's cheaper to heat a 2-bedroom ranch than 4,000 sq. foot warehouse. Especially if only 2 people live there.)

- Fiscally sound. The people who are left ACTUALLY pay the taxes they owe. Those taxes are enough to cover our debts.

Then we can focus on the re-building and the expansion. But I stand by my original opinion that no one but an EM/EFM will have the political shielding necessary to do what needs to be done.

[R8RBOB]

*Eliminate two of the council seats.
*Cut their salairies by 60%, and elimnates all the perks such as private vehicles and security.

All your ideas are good ideas but I wanted to focus on CC.

You said eliminate two seats, I will go a step further. Eliminate four seats. One of the things that Charter Commission should have debated while writing the new charter in addition to electing by district is determine the number of council seats by population. The population in Detroit has been decreasing since the 1950's yet the number of council seats has remained the same.
The Charter Commission should have taken the government's method of determining how many House seats each state gets based on population taken through the census.

Based on the 2010 Census number of 713,777, Detroit should broken up into five districts and eliminate four council seats.

[401don]

The economic situation is constantly made worse by the fact that those with economic means continue to move out leaving a continually poorer city behind, with a larger and larger portion of those citizens contributing little or nothing to the tax base. A city of a half million will probably provide a third of the revenue that 1 million did.