BY CHRIS CHRISTOFF
DETROIT FREE PRESS LANSING BUREAU CHIEF
LANSING — Detroit Mayor Dave Bing said Thursday that he’ll request a state-appointed emergency financial manager if the city’s 48 employee unions don’t make health care concessions, or if the state does not agree to extend the city’s special allowance for income and utility taxes.
Either scenario, he said, would create a financial emergency, with the city already facing a $200-million deficit.
“I don’t think the state wants to go that route, nor do we,” said Bing, who met with lawmakers from both parties and with Gov. Rick Snyder.
Bing asked lawmakers to approve a one-year increase in the city’s tax on casinos, to raise $20 million. Legislation is also needed to allow the city to raise its personal income tax back to 3% from 2.5% (and to 1.5% for nonresidents), and to continue its 5% tax on phone, electric and gas bills. Combined, the taxes would generate about $90 million, he said.
Without legislative help, the taxes would end under current law. Detroit is the only city to have a utility tax and an income tax greater than 2% for residents because of an exception in state law for cities with 750,000 people or more. The city’s population sank to 713,000, the census found.
Bing said he also would try to convince Snyder not to cut the city’s revenue sharing, as he proposed in his budget plan.
Sara Wurfel, spokeswoman for Snyder, said he would gladly review Bing’s plan. She said Snyder believes Detroit deserves support and is key to the state’s economic growth.
Bing said House and Senate leaders seemed supportive.
The mayor said he prefers negotiating concessions with city unions, but that he would “absolutely” ask the state for an emergency financial manager. An emergency manager would have broad powers to run the city, take over its finances and even terminate union contracts. The state treasurer could choose to appoint Bing, but if someone else is appointed, that person could take all control from the City Council and the mayor.
Bing said although some council members say he needs to cut more from the budget and lay off more employees, that would be difficult to accomplish. He said there are 1,800 fewer employees than the 13,000 the city had when he took office in 2009.
He said one member suggests eliminating 1,000 more city jobs to save $75 million.
“You can’t do that overnight,” Bing said “We’ve got procedures and union contracts.”

