(WWJ) Detroit Mayor Mike Duggan says the city must solve a $348 million budget deficit for this year and next and it's due to expenditures and lost revenue fighting the coronavirus pandemic.
The mayor said the city has a deficit of $154 million as this fiscal year ends at the end of June. In addition, he's projecting a $194 million deficit for the coming year.
The mayor says if the city doesn't have a balanced budget the state could take over financial control. So, what to do?
"There's no way around the fact that the last $50 million are going to have to come from the men and women delivering service in this community," Duggan said.
Speaking Tuesday night, the mayor said other than Las Vegas, Detroit was the hardest hit city as a result of closures related to COVID-19. He says the three casinos haven't paid the city any money since mid-March and may not open until July at the earliest. The mayor also said city income tax, and property taxes are dropped.
Duggan says he will propose using all of the rainy day fund and blight funds as well as some other funds to make up $298 million dollars of the deficit. That will leave about $50 million in cuts.
The mayor says there should be no cuts to the police, fire and EMS departments.
To make up the remaining deficit, the mayor says about 200 part time and temporary employees will be laid off. While other city workers will have their hours cut or will not get a raise. Those workers in the administration making over $125,000 will take a 5-percent pay cut.
The city council has to approve the budget.
