Tuesday, November 13, 2012

Yet Again, Detroit Is Running Out Of Money

Not entirely unexpected given the City's refusal to get its finances in line.

Considering Detroit overwhelmingly voted against the Emergency Financial Manager law, they're likely to suffer the consequences.

The Detroit Free Press: Detroit finances may get even worse, fiscal board is warned

Detroit's financial condition is deteriorating more quickly than projected, and without an infusion of money from the state, the city could run out of cash by mid-December, a top city official told the board that has significant oversight of the city's finances.

Adding to the insanity, the Detroit City Clowncil is request the Detroit Legal Counsel decide if the financial board and the consent agreement with the state are also rendered ineffective with the repeal of the EFM law.

Council members have asked the city's Law Department for a legal opinion on how the city should proceed with the agreement in the aftermath of the repeal. But council members already are talking about options such as seeking to disband the Financial Advisory Board or at least eliminate its pay -- the city and state split $25,000 annual salaries for each of the nine board members and their work-related expenses.

Council President Pro Tem Gary Brown said the city's top lawyer, Krystal Crittendon, is expected to give the council an opinion as early as this week. Her opinion is likely to give council members a significant amount of direction on what they can do to reassert authority and possibly reverse some of the cuts Bing imposed.

Of course, if the Consent agreement is repealed, then there should be no more money from the state under that agreement.

I'd hope both Governor Snyder and the State has the gumption to demand the return of the $57 million it has already extended to Detroit under the consent agreement, but somehow I doubt they'll take such a reasonable line. In any case, The State darn well better keep withholding the remaining $80 million it has in escrow until this gets worked out or Detroit will have played the State and Gov. Snyder like a cheap fiddle - They'll get all the money, with no accountability or fiscal reform.

1 comment:

ProudHillbilly said...

It makes you wonder how many stupid people there are in the country. California - broke and getting broker. But San Fransisco can use tax dollars to fund transgender operations.