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