Jan 25 The Detroit City Council on Friday
approved another measure aimed at shoring up the city's sagging
finances and staving off a state takeover.
In a 6-3 vote, the council reduced the pay of non-union
workers in Detroit's legislative and executive branches by 10
percent. Mayor Dave Bing had originally sought an up to 20
percent reduction through unpaid days off. Estimated cost
savings were not immediately available from Bing's office.
Since November, a majority of the nine-member city council
has signed onto reform, restructuring and cost-cutting measures
sought by the mayor and by Michigan officials to address a
financial crisis that has dogged the city for years.
The slow progress prompted the state in December to launch a
review process that could lead to the appointment of an
emergency financial manager who could recommend Detroit file for
bankruptcy. That process, which would culminate in a
recommendation by a review team to Governor Rick Snyder, could
A Chapter 9 municipal bankruptcy filing by Detroit, which
the state could block, would be the largest ever in the United
States. Detroit has around $8.2 billion of outstanding rated
The city of about 700,000 has been battered by a steep
decline in population, years of severe budget deficits and
escalating employee costs.
Earlier this month, the council approved a one-year pension
freeze and a higher share of health care costs for nonunion
workers as the city planned to negotiate similar cost-cutting
actions with its labor unions.