City Council approves budget amendment to allow millions to go to pension fund

DETROIT (WXYZ) - Detroit City Council has voted to approve a budget amendment allowing them to pay almost $30 million to the city pension fund.

The amendment was needed because the city owed tens of millions to the pension fund. The money was somehow left out of the budget due to a mistake made by a former member of the mayor's administration. 

Meantime, Detroit is projected to have a cash shortfall this month, leading some to believe that they will not be able to make payroll. The mayor's office reassured council that would not happen, but said cuts are needed.

City Council had previously voted down a contract with Miller Canfield. That vote could prevent the city from collection millions from the state - money that is needed to keep the city from going broke by the end of the year.

Council did not approved a contract with the law firm over their concerns about the role the law firm played in drafting the consent agreement. A contract with Miller Canfield was part of the "Milestone" agreement that brought financial aid to the city from the state of Michigan.

Furloughs will also be another topic that may be discussed at today's meeting.

Print this article Back to Top

Comments