DETROIT – DETROIT (AP) — Detroit is no longer at risk of running out of cash by April because cost-cutting and other measures are taking effect, Mayor Dave Bing said Thursday, but the city council president and others do not share Bing’s optimism.
Bing presented a financial and operational restructuring plan update to the council Thursday afternoon. It highlights cost savings from 1,000 imminent layoffs, overdue payments from the Detroit Public Schools district and a corporate tax increase he says will mitigate a cash shortfall.
The 18-month plan calls for $102 million in savings through June and $258 million over the 2013 fiscal year. Auditors had previously warned Detroit could run out of money as early as April.
Bing said members of a state review team won’t uncover any financial issues in the city that his administration doesn’t know about when they meet with his staff in the coming weeks.
“Do we have financial stress? Damn right we do. We’ve had it since day one,” Bing said. The review team’s recommendations will be forwarded to Gov. Rick Snyder. City officials have said they want to avoid the need for a state-appointed emergency manager.
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