Thursday, March 29, 2012

Short-term fix for Detroit: Borrow $137 million; but some opposed measure

In an effort to stabilize a city teetering on bankruptcy, the Detroit City Council on approved borrowing millions of dollars to help address a cash-flow problem that could lead to payless paydays and service cuts.

And Deputy Mayor Kirk Lewis was looking for even money, but from the state. Lewis insisted that any agreement between the state and city to avoid the appointment of an emergency manager would need to come with an additional infusion of cash from the state.

Lewis stopped short of saying the city would refuse a deal without significant financial support, but he did say that “there has to be money coming to help us fund this transformation, or restructuring. We have to have some resources. “My view is that you can’t sustain a turnaround unless you have some infusion of money, because the things that we need to get done … take money.” Read More