*Apparently the financial stability of Detroit is even worse than many thought. That was made painfully clear by current Mayor Dave Bing.
Wednesday Bing laid out a plan to save the city from insolvency that includes outsourcing services, demanding union concessions and hiking the corporate income tax.
The plan also calls on the state to correct a “historic wrong” by returning more than $220 million in revenue sharing to the city, a move he said would eliminate Detroit’s structural deficit and compensate for the current fiscal year deficit of $45 million.
“Simply put, our city is in a financial crisis and city government is broken,” Bing told about 30 people during his address at the Northwest Activities Center.
“The reality we’re facing is simple: If we continue down the same path we will lose the ability to control our own destiny. For decades the city has refused to face its fiscal reality. We cannot continue to operate this way,” the mayor said, as the city revealed Wednesday that it had only $96.1 million in cash in its coffers as of late October.
Bing asked for givebacks of $40 million from city workers including police and fire employees, and $8 million from retirees. He also will increase the tax on corporations by less than 1 percent effective Jan. 1.
Read/learn more at The Detroit News.