"One tough nerd" has one tough decision

State Treasurer Andy Dillon reaffirmed Detroit’s bleak financial health in a report delivered to Governor Rick Snyder on Tuesday.  Dillon led a financial review team comprised of Kenneth Whipple, Darrell Burks, Ronald Goldsberry, Thomas McTavish, and Frederick Headen.   Following the review, all members agreed; Detroit is in a state of “financial emergency” and does not have a sufficient plan in place.

One week ago, Mayor Dave Bing proudly declared that Detroit had continued to meet its payroll obligations and avoided an Emergency Manager to date.  He continued by reporting savings the City realized through adoption of technological solutions and partnerships with non-profits that helped Detroit’s bottom line.  Bing acknowledged Detroit’s dire condition, but held out hope.

Dillon’s comments today suggest that the fiscal savings championed during Bing’s reign are not enough.  Mayor Bing has restored integrity and morality to the Detroit missing during the past administrations, and for that, Detroiters should be grateful.  That being said, the financial struggles of Detroit persist.

They include:

·         A $14 Billion in unfunded pension liabilities

·         A $100 million cash-flow deficit by June 30 if spending cuts are not implemented

For too long, Detroit has kicked the can down the road by relying on long term debt to fund their short term obligations.  In addition, the City never seemed to unite after the Consent Agreement like Governor Snyder had hoped.  Words like accountability, sacrifice, and urgency have been thrown around but the rhetoric far too often remained an idea rather than action.

An emergency manager offers Detroit a chance to circumvent political standstill and get to work.  A nonelected official, with no aspirations for reelection, would have the ability to implement a plan that can optimize Detroit’s dwindling resources.  In no way am I suggesting that the City can cut its way to prosperity, but taking the necessary financial actions would signal to citizens and businesses that Detroit is for real this time.

Will Snyder play his emergency manager card?  Time will tell, but the man that ran for office by proudly characterizing himself as “one tough nerd” has one tough decision ahead.

Full Text of Mayor Dave Bing’s State of the City Address, Detroit Free Press

http://www.freep.com/apps/pbcs.dll/article?AID=2013130213094

State treasurer: “We gave the city every chance”, Detroit News

http://www.detroitnews.com/article/20130219/METRO01/302190407/Mich-treasurer-Detroit-We-gave-city-every-chance-?odyssey=tab|topnews|text|FRONTPAGE