Vanguard News Network

[Deetroit is headed for bankruptcy and receivership, just like Marion Barry’s and Robert Mugabe’s chic little burgs. You will perhaps not be surprised to learn its mayor’s named Kwame. Quoth Detroit’s “official” website:

Since taking office in 2002 as the youngest mayor of any major U.S. city, Kwame M. Kilpatrick has led tremendous growth in the city of Detroit including the biggest housing and commercial construction boom in 50 years, the largest road and infrastructure improvement program in decades, and a $2–billion overhaul of Detroit’s riverfront.  After decades of decline, Detroit is experiencing a revival thanks to Mayor Kilpatrick’s leadership that has been recognized by media including the New York Times, USA Today, the Los Angeles Times, and the Financial Times of London.

Without even looking I can guess that this gorilla-wit-earing was apeherded by some jew through to bogus community planning degree. Link.

Even a useless liberal has this to say about Emperor Jonesin’ fo’ Bling ‘n’ Respect and Urban Renewification an’ shit:

True Story about his ego:

Opening Day at Comerica Park 2002, We were standing in front of the Fox Theatre on Woodward across the street from the stadium when up Woodward came two Oldsmobile’s. Inside car one was the Governor’s Security detail and in the second car was then Governor John Engler. 3 Minutes later a convoy consisting of 2 Lincoln Town Cars, Two Cadillac Escalade’s and 4 motorcycle cops came up the strip. Kwame was in the second Escalade. Just to recap; Governor of a state of 9 and a half million people comes in a two Oldsmobile convoy, New Mayor of a crime ridden corrupt city of 925,000 comes sporting Cadillac’s and Lincoln’s and a police escort. I guess they need the other vehicle to hold his ego. Link. ]

Ailing city running out of cash fast

Mayor Kilpatrick says Detroit needs to borrow $130M to pay bills or it will be broke by June.

Lisa M. Collins / The Detroit News

Amid growing concern about Detroit’s financial status, Mayor Kwame Kilpatrick is asking the City Council for authority to borrow $130 million to cover immediate and overdue bills.

Without the loan, Detroit will run out of cash by June, according to a city Finance Department report.

“Without the bonds, it would make our cash situation very difficult,” said Detroit Interim Finance Director Roger Short.

The money will be used to pay off $74 million owed to the city’s pension fund for last year and other bills.

But other troubling financial issues are arising as Kilpatrick prepares to announce a restructuring of city government April 12 — another in a series of attempts by the administration to match steadily increasing costs with steadily declining revenue and get rid of a $300 million deficit:

# The city’s unions, despite more than a year of negotiations, have not agreed to concessions. With city union benefit packages reaching 90 percent of basic salaries for many workers, compared to an average of 30 percent in the private sector, some in the Kilpatrick administration have suggested cutting whole departments, such as recreation and health.

# Detroit’s audited financial report for the budget year ended June 30, 2005, is still not completed despite a state requirement for it to be done by Dec. 31. All city loans must now be approved by the state because the city missed the deadline.

“Wall Street doesn’t like it, the state of Michigan doesn’t like it, but people just go along with it,” said Joe Harris, the city’s former auditor general, about the late financial report.

The state Treasury Department is confident the mayor can handle the storm and solve the city’s budget woes “working together” with the City Council, said Treasury spokesman Terry Stanton.

Loans to cover bills are not uncommon among government units at all levels in Michigan.

Credit rating agencies on Wall Street, however, have cut the city’s bond ratings because it has continually piled up debt to cover bills.

“We believe the city has the ability to handle its financial problems and we expect that it will do so,” Stanton said.

Still, “we need to see the audit report to see where things stand,” he said.

Whether Kilpatrick can cut deals with the unions is key in fixing the city’s finance woes, said Harris and others.

“You cannot balance the budget without union concessions,” Harris said. “You cannot make enough layoffs to balance a $300 million deficit and still provide services and public safety. We looked at that budget inside out. We couldn’t find a way to provide city services at the current rate of compensation and benefits for city employees.”

Harris says the average city worker makes $40,000, and with benefits, costs the city on average $75,000 a year. In order to save $50 million, the city would have to lay off 600 people, and the savings would not come immediately.

Harris retired in November after 10 years as the city’s financial watchdog and official auditor.

City Councilwoman Sheila Cockrel said she, too, is worried about the state of the budget.

“I’m concerned we’re running out of cash,” Cockrel said.

“You have no idea how many outstanding questions I have on this financial thing that have not been answered. There’s a huge problem there.”

The city’s audited financial report will officially determine the level of its deficit left over from the last fiscal year.

Kilpatrick’s current budget forecasts a $100 million deficit for that year, but City Council fiscal analysts say the figure is closer to $162 million.

Once the city’s audited financial report states last year’s deficit, the city will be required by state law to get rid of it.

Harris says “poor accounting practices” and staffing issues are to blame for the late report. But interim Finance Director Short disputes that claim.

He says complex financial transactions last year are holding up the report, including the city’s borrowing of $1.4 billion to fund its pension accounts.

Short said the report will be done “hopefully sometime in mid-April.”

Harris says the city’s financial situation hasn’t changed since he left office. He criticized Kilpatrick’s initiatives as not taking enough action.

Last year, Kilpatrick proposed in his budget a fast-food tax, union concessions and a 10 percent cut for all city employees, as well as savings from a transfer of Cobo Center and the Detroit Department of Transportation to regional authorities.

“None of the major recommendations were accepted or enacted,” Harris said. “We will have another deficit for next year unless he takes drastic action,” Harris said.

“Kilpatrick has found creative ways to keep the city afloat. But you can only do that for so long.”

You can reach Lisa M. Collins at (313) 222-2072 or [email protected].