Bing's 5-year plan to cut deficit unveiled

[begingri]

Darren A. Nichols / / The Detroit News

Detroit — Mayor Dave Bing's plan to shrink the city's deficit relies heavily on extracting more concessions from unions on health care and pensions that some labor leaders say could be a tough sell.

Bing delivered his five-year deficit elimination plan to the City Council on Wednesday. It's a key component to averting the appointment of an emergency manager, the mayor has said. But at least one union leader said workers have no intention of reopening contracts before they expire next spring.

In the plan, Bing intends to transform the $155 million deficit into an $89 million surplus by 2016. It calls for streamlining operations, transferring assets, cutting pensions, changing health care and increasing revenue from casinos. It would whittle the city's deficit to $64.6 million by 2014 and produce a $7.3 million surplus by 2015.

The plan does not call for shedding employees through layoffs but by efficiencies in operations, city officials said. It relies heavily on changes in pensions and medical benefits.

The city seeks the following savings: $87 million from cutting pensions, $18 million from increasing co-pays and changing health plans, and another $10 million to $14 million from implementing those changes to retirees.

The plan also calls for transferring control of the problem-plagued Coleman A. Young Municipal Airport to Wayne County to save $820,000, and saving $37 million in transportation costs once the city's light rail project along Woodward Avenue is completed in 2016.

http://detnews.com/article/20110505/METRO01/105050383/Bing’s-5-year-plan-to-cut-deficit-unveiled#ixzz1LSCdpl9G

[Fnemecek]

Yeah, this reminds me of his "turnaround plan" from 2009. It was supposed to have the deficit under control in a year.

[Novine]

Pipe dream. This is just window dressing in advance of an EFM being appointed.

[bailey]

Pipe dream. This is just window dressing in advance of an EFM being appointed.

especially when relying upon completely fictitious and likely never to be realized items as :

and saving $37 million in transportation costs once the city's light rail project along Woodward Avenue is completed in 2016

how about actually getting a plan agreed on and maybe a shovel or two in the ground before you start counting the dollars saved?

[Crumbled_pavement]

especially when relying upon completely fictitious and likely never to be realized items as :


how about actually getting a plan agreed on and maybe a shovel or two in the ground before you start counting the dollars saved?

Light rail is not likely to ever be deployed in Detroit.

[Bham1982]

No layoffs? How can a city be shrinking by the day and no layoffs?

[detroitbob]

Will Bing be appointed the financial manager? Rumors abound that he has taken the financial managers course in secret and has a pact with the nerd. If this were to happen, imagine the look on the look of amazement on the clowncil members faces.

[Fnemecek]

Will Bing be appointed the financial manager? Rumors abound that he has taken the financial managers course in secret and has a pact with the nerd. If this were to happen, imagine the look on the look of amazement on the clowncil members faces.

That's just that - a rumor.

First, the EFM course would be tough to take in secret. It was several full-day sessions. Too many people would've noticed him going to Lansing or the Lansing people being here to administer said course.

Second, there are too many people who did take the course who would scream bloody murder if Bing got that appointment. They want the gig. Detroit has a pension fund and several other assets that they want their hands on.