Los Angeles Mayor Villaraigosa has caught heat recently for his budget that called for the elimination of more than 700 jobs in Los Angeles. However, budget fixes in Detroit will result in more than 3,500 layoffs.
Mayor Dave Bing has released his budget proposal, and it calls for 2,500 layoffs. That is in addition to 1,000 layoffs that have already been requested. The cuts came after revenues came in even lower for next year – more than 10% lower. The city will have only $739 million in its general fund for next year, instead of the $820 million they had this year.
Cuts weren’t the only solution introduced. The mayor also called for massive privatization for the city. If the mayor has his way, the bus service, lighting, and airport will transfer to private entities. Multiple departments will be erased in their entirety, including workforce development and health and human services.
The city has $265 million in short term debt and more than $13 billion in long term structural debts.
From the Associated Press:
Detroit Mayor Dave Bing on Monday laid out a budget proposal that would cut more than 2,500 jobs and shave $250 million in annual expenses after the financially struggling city agreed to state oversight that is aimed at fixing a deficit and long-term debt.
Chief Operating Officer Chris Brown told City Council members the layoffs would be in addition to 1,000 job cuts Bing sought earlier. He said the city’s general fund revenues will decrease from $820.5 million to $739 million.
Read the full article here.