Detroit City Council weighing response to Governor Snyder's financial emergency announcement

DETROIT (WXYZ) - Members of Detroit City Council are reacting to Governor Rick Snyder's announcement that the city is in a financial emergency and that he is moving forward with the appointment of an Emergency Financial Manager.

"The first issue with our hair being on fire is that we were running out of cash - that's not the case any more," Council President Charles Pugh said. "We're not in danger of not being able to pay the debt on our bonds. We want to know what's the real urgency. If we're going to be good til the end of the fiscal year - which is June 30th - then that buys us time to be able to make the real substantive changes that we know we need to make.  One is retiree health care - we're working on that. Restructuring departments, working on our debts, lets not rush into a decision."

Detroit City Council originally met at 9:00 am Friday morning for a special session to discuss its response to Governor Snyder's noon announcement.

City council then requested the attendance of Mayor Dave Bing at an 11:00 am session. However, the mayor asked that they wait to meet until Governor Snyder's noon news conference is over.

However, Pugh then said the mayor would not be coming to the council table today. Pugh also says he doesn't think an Emergency Financial Manager is a foregone conclusion and that it is important that the council and mayor present a "united front" to the governor.

Mayor Bing has released a statement responding to the governor's announcement .

Council member Saunteel Jenkins says she's not sure they will be able to change the governor's mind.

"There are a couple of new revenue initiatives that are being discussed with state and city. The important thing for me is that plan not working .. it's a state plan,  it's not a city plan," Jenkins says. "The cash flow statements that were produced were produced by a firm the state sent here to help us understand. Why if the plan you forced us to adopt is not working now .. what are you going to do differently?"

The council is expected to also discuss a plan to address the city's cash flow crisis by the end of June 2013 when they meet this afternoon. Council has been advocating for a consent agreement with additional milestones rather than an Emergency Financial Manager.

During council's morning meeting the director of the fiscal analysis division discussed a joint cash plan which he says lays out a fiscal argument on how to revise the consent agreement to make it more viable.

Some of those points include structural changes such as furloughs and health care changes.

Now that consultant contracts have been approved, they believe that will be a new tool in their tool belt.

They say the consultants would now be able to assess long rang financial planning and make recommendations to current and future health care costs.

They plan on making the joint cash plan into a resolution for a possible vote.

Action News will bring you updates on what develops with Mayor Bing and Detroit City Council as they happen.

If the governor decides to appoint an EFM, the city will have 10 days to appeal the decision.

Last week, Governor Snyder said he would take a week or so to make his final decision on what he would do with the city of Detroit. At that time he said he would either appoint an emergency financial manager or enter into a new consent agreement with the city.

- See more at: http://www.wxyz.com/dpp/news/region/detroit/live-at-noon-michigan-governor-rick-snyder-to-announce-decision-on-detroit#sthash.U5UjB7qY.dpuf

If the governor decides to appoint an EFM, the city will have 10 days to appeal the decision.

Last week, Governor Snyder said he would take a week or so to make his final decision on what he would do with the city of Detroit. At that time he said he would either appoint an emergency financial manager or enter into a new consent agreement with the city.

- See more at: http://www.wxyz.com/dpp/news/region/detroit/live-at-noon-michigan-governor-rick-snyder-to-announce-decision-on-detroit#sthash.U5UjB7qY.dpuf

If the governor decides to appoint an EFM, the city will have 10 days to appeal the decision.

Last week, Governor Snyder said he would take a week or so to make his final decision on what he would do with the city of Detroit. At that time he said he would either appoint an emergency financial manager or enter into a new consent agreement with the city.

- See more at: http://www.wxyz.com/dpp/news/region/detroit/live-at-noon-michigan-governor-rick-snyder-to-announce-decision-on-detroit#sthash.U5UjB7qY.dpuf

If the governor decides to appoint an EFM, the city will have 10 days to appeal the decision.

Last week, Governor Snyder said he would take a week or so to make his final decision on what he would do with the city of Detroit. At that time he said he would either appoint an emergency financial manager or enter into a new consent agreement with the city.

- See more at: http://www.wxyz.com/dpp/news/region/detroit/live-at-noon-michigan-governor-rick-snyder-to-announce-decision-on-detroit#sthash.U5UjB7qY.dpuf

 

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the governor decides to appoint an EFM, the city will have 10 days to appeal the decision.

Last week, Governor Snyder said he would take a week or so to make his final decision on what he would do with the city of Detroit. At that time he said he would either appoint an emergency financial manager or enter into a new consent agreement with the city.

Those remarks came after a financial review team found that a financial emergency existed in the city of Detroit. The review team also recommended to Snyder that he appoint an emergency financial manager to run the city.

- See more at: http://www.wxyz.com/dpp/news/region/detroit/live-at-noon-michigan-governor-rick-snyder-to-announce-decision-on-detroit#sthash.U5UjB7qY.dpuf

f the governor decides to appoint an EFM, the city will have 10 days to appeal the decision.

Last week, Governor Snyder said he would take a week or so to make his final decision on what he would do with the city of Detroit. At that time he said he would either appoint an emergency financial manager or enter into a new consent agreement with the city.

Those remarks came after a financial review team found that a financial emergency existed in the city of Detroit. The review team also recommended to Snyder that he appoint an emergency financial manager to run the city.

- See more at: http://www.wxyz.com/dpp/news/region/detroit/live-at-noon-michigan-governor-rick-snyder-to-announce-decision-on-detroit#sthash.U5UjB7qY.dpuf

Stay with WXYZ.com for updates.

 

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