Possible Deal to Save Detroit ‘Stymied’ by Unions, Ailing City Faces State Takeover

Detroit officials have until Thursday (what’s with Thursday deadlines?) to rescue their ailing city from financial insolvency or a state takeover.

“A deal backed by Mayor Dave Bing and Michigan Gov. Rick Snyder, a Republican, would grant the city the power to void contracts and slash costs but not provide state funding or loans to bail the city out of its financial problems,” CNN Money reports.

But fierce “opposition from unions — in a city that remains a bastion of labor power — has so far stymied efforts to pass a rescue package,” the report adds.

If the city council doesn’t get its act together and come to an agreement on the deal by Thursday, Gov. Snyder has announced that he will (legally) appoint an “emergency manager” to take over the day-to-day operations normally performed by the mayor and city council.

“The city council is under pressure from the public and city unions to reject the deal with the state [emphasis added],” Money reports, “At the same time, it would lose its powers if Snyder goes ahead and names an emergency manager.”

And with all these massive fiscal problems, the only action the council has taken this week was to double the city’s corporate income tax to 2 percent.

“Years of decline in population and businesses and a shrinking of the tax base have pushed Detroit into a deep financial hole despite a recent resurgence in the U.S. auto industry,” CNN Money reports.

“Without more cost cutting, the city will won’t be able to pay its bills come June. An estimate in January, the most recently available, was that the city would be down to $20.9 million in the bank by the end of this week,” the report adds.

So let’s say the unions have their way, the city council can’t come to an agreement on the Bing & Snyder deal, and the governor appoints an “emergency manager.” What powers would he/she have to save Detroit? If it comes to that, an “emergency manager” would have the authority “to void contracts with both unions and vendors” and sell off city assets.

Void contracts with unions? Whoa. If the unions don’t like the rescue package, they’re going to hate a Republican-appointed “emergency manager.”

“As the debates, negotiations and lawsuits raged this week, they did so without Bing, who was recently released from the hospital after serious intestinal surgery and won’t return to work for two weeks,” CNN Money reports.

“Both Bing and Snyder say they want to avoid a state takeover, which in itself could be the first step toward the largest municipal bankruptcy in the nation’s history.”

And now for something truly depressing, here’s a portion of Kevin Bauman’s collection of 100 abandoned Detroit homes (via Business Insider):

See the rest of Bauman’s collection here.

Comments (122)

  • commonsenseguy
    Posted on April 5, 2012 at 12:09am

    this the future of america, the unions especially their union bosses and former bosses,bill aires for starters, could careless about their city or state just about their money,and they claim to represent the people,when obama is reelected or steals the reelection the unions will do just as they are in europe ,greece,and the other countries, destroy everything in site just to keep their money, the unions are willing to destroy the only free country in the world,with the beliefs that they will be untouchable when the soro’s obama regime take over,but as history has shown, the people { the union workers } will be use and thrown out to the curb with the rest of america,and their bosses will be in the big house with the rest of the communist regime, this just a small step and the demise of america is the ultimate goal,
    god bless this great country,and god i pray that we can save her from the future that the crazy left wing,communist,union nut jobs have envisioned,and from the worlds most spooky dude and his minions.

    Report Post »  
    • TAXEVERYONE
      Posted on April 5, 2012 at 6:56pm

      It is Bill Ayers, and he was a convicted terrorist during the 60′s, not a union boss. He was worse than any union boss.

      Report Post » TAXEVERYONE  
  • rawmilker
    Posted on April 4, 2012 at 11:40pm

    The unions are going to be left with no $$ to embezzle…. :-(

    Report Post » rawmilker  
    • Detroit paperboy
      Posted on April 5, 2012 at 12:00am

      Don’t even bother……..it was to late in 1976 when that worthless Moron Coleman Young got elected…..he was an Obama junior, and if you look at Detroit , you will exactly what Democrats want to do to the entire country !!!!!! I beg you , please don’t let them !!!!!! VOTE !

      Report Post »  
    • TheObamanation
      Posted on April 5, 2012 at 12:33am

      @teamarcheson … your transparent attempt to make tea party members look bad is pathetic … tea party members aren’t racist … nice try troll

      Report Post » TheObamanation  
    • lukerw
      Posted on April 5, 2012 at 1:36am

      Alike Greece… Socialists cannot admit to failure… but simply go into SelfDestruct Mode!

      Report Post » lukerw  
    • blackyb
      Posted on April 5, 2012 at 2:43am

      The lack of cars seems to emphasize the emptiness. The streets are empty, the city is resting. There is peace because there are no people to disturb this rest. The homes are standing looking as though they are well beaten and almost grateful for the rest. Those who destroyed this destroyed this city must have gone away with the ones who tried to save it. The houses must feel freedom from the hell within their walls. The houses must be glad.

      Report Post » blackyb  
    • TomFerrari
      Posted on April 5, 2012 at 7:16am

      You know, it seems to me, at some point this becomes extortion or economic terrorism.
      “Gimme what I want, or I’ll hurt you !”

      Shameful.

      I hope their neighbors remember to “thank them” for bankrupting the city, and “driving” off good jobs, and forcing property taxes through the ceiling.

      Way to go, socialist democrats and communist unions!!

      Just think, some day you can tell your grandchildren how you and a few of your friends, destroyed entire cities!! When you do, you can also explain to them why they are in debt $250,000 the day they are born, and in debt $1,000,000 by the time they get their first job.

      Report Post » TomFerrari  
    • grandmaof5
      Posted on April 5, 2012 at 7:20am

      Their agenda does seem to be getting clearer and clearer. I hope what few people are left in Detroit will realize they are pawns in a master plan and will not vote for Obama. There are people who actually want to see Detroit succeed, but it isn’t the libs, unions, or Obama. Union members don’t seem to realize they are pawns in the destruction of their country, and are leaving their children and grandchildren in line for a hopeless future, unless they follow in the union footsteps. If that is their path, they will still have a “boss” telling them what to do, when to do it, and how high to jump. It will be a union dog and pony show!

      Report Post »  
    • johnjamison
      Posted on April 5, 2012 at 7:41am

      Fire EVERYONE tear up the contracts and start from scratch.

      Report Post »  
    • HKS
      Posted on April 5, 2012 at 7:42am

      Looks like they have already stole all the money. It’s called bankruptcy, it‘s what happens when you can’t pay your bills. Turn out the lights and push it into the lake.

      Report Post » HKS  
    • 13th Imam
      Posted on April 5, 2012 at 8:40am

      The line should read,
      Dave Bing, DEMOCRAT Mayor

      Why do they leave out what affiliation DEMOCRATs have. Are they embarrassed?? Is it not something to be proud of, being in the DEMOCRAT Party of the KKK, and BARRY, and Bull Connor, Spitzer, Corzine, Gore, Van Jones, Saul Alinsky, Rev Wright, Sharpton, Jesse??

      Report Post » 13th Imam  
    • MAMMY_NUNN
      Posted on April 5, 2012 at 10:34am

      Unions will continue to cut their throats even though they know it is unsustainable.
      How dumb can these people be ?

      Report Post »  
    • 4truth2all
      Posted on April 5, 2012 at 11:02am

      Yo BLACKYB:

      Interesting thoughts … how about this … the houses look sad and lonely.. The ones that were to fill them with love have gone, They needed someone to care for them, they can not make it on their own nor do they desire to ….no, a house was meant by God to be a home.

      Report Post »  
    • AmazingGrace8
      Posted on April 5, 2012 at 7:47pm

      @tomferra

      This reminds me of the line from “Storm of the Century”, S King…..“Give me what I want and I will go away”. After the assembly of towns people, it looks like the bag was filled with many more rocks and thousands of people left their homes with their families…overflow from one century to another. Sad.

      Report Post »  
  • cassandra
    Posted on April 4, 2012 at 11:27pm

    of course they want to postpone the deadline for a budget, they have never been on a budget before the unions and communist have taken over the city and want their over paid state workers to continue scaming money from those that work to give it to themselves and their wellfare voters, the city has been corupt since the democraps have been voted in. The teachers are the worst in the country and dumb down the children to the point they can’t read, write or do math by highschool,unwed motherhood ,drugs,crime,murder is the norm, the unions and taxes have helped by their demands so buinesses and manufacturing have left, not only do they need a emergency manager they need exorcist’s

    Report Post »  
  • Snowleopard {gallery of cat folks}
    Posted on April 4, 2012 at 11:05pm

    This is the future of America under Kaiser Obama in miniature; what is happening there will soon enough lead to state failures and their surrendering of complete soverignty to the Federal authorities in return for assistance; and the complete collapse of the Republic.

    Look for the macro scale to happen soon, now that the city micro scale is occuring.

    Report Post » Snowleopard {gallery of cat folks}  
    • Thevoice
      Posted on April 4, 2012 at 11:31pm

      So So true…You see the Obama child Mayor in Chicago trying desperately now to get daddy Obama to help out with another 6 billion dollar bailout. Well of course the other 30 billion they have gotten over the past years never worked ..So this is going to be different..Happening all over in the “New age progressive commie” run urban centers….

      Report Post » Thevoice  
    • seeker9
      Posted on April 4, 2012 at 11:53pm

      If you’re a progressive in Detroit, you expect everything for free.
      When everything is free, you care about nothing else.
      When you don’t care about anything else, neighborhoods deteriorate.
      When neighborhoods deteriorate, you become trapped.
      Don’t get trapped. Abandon progressive ideas.

      Report Post » seeker9  
  • JohnQTaxpayer
    Posted on April 4, 2012 at 10:51pm

    This is how the democrat created welfare state dies; does the city have a DNR?

    JQT

    Report Post » JohnQTaxpayer  
    • GeorgieJo
      Posted on April 5, 2012 at 12:55am

      JQT
      Someone stole the copper wiring for the ventilator.
      Detroit is near asystole.

      OMG 2012

      Report Post »  
  • I_DIAL_1911
    Posted on April 4, 2012 at 10:44pm

    You can blast Detroit all you want, but consider what is happening here in SE Michigan as a trailer of what is about to transpire in your little piece of the Pleasantville, USA if this a-hole (imposter-in chief) stays in office. Welcome home, lock and load.

    REMEMBER… When seconds count, the cops are only minutes away. Go ahead and snicker…..today.

    Report Post » I_DIAL_1911  
    • CatB
      Posted on April 4, 2012 at 11:17pm

      I agree … it is spreading and soon will be all of Michigan .. I was appauled last year at the decline of my old hometown .. and up north … every other commercial on TV was how to get a “free” gov’t cell phone! .. jobs are leaving because of the UNION THUGS .. and the state is dying under the weight of supporting Detroit.

      Report Post »  
  • AB5r
    Posted on April 4, 2012 at 10:41pm

    Take a look at those abandoned houses, look like they were pretty nice at one time, with plenty of land around them. Even if someone wanted to go to Detroit today and try to develop it, the “people” who are there would make it impossible. Imagine some white family that decided to move into one of those old houses and fix it up, they wouldn’t last a year in the neighborhood, even if they home-schooled, even if they had guns for security, etc.

    Report Post » AB5r  
    • NancyBee
      Posted on April 4, 2012 at 11:43pm

      I love old houses like these…….This is a crying shame

      Report Post » NancyBee  
    • Detroit paperboy
      Posted on April 5, 2012 at 1:02am

      @ab5r
      The reason you see all that land around those once beautiful homes, is because all of the other homes that were once on that block, have been demolished…. I went home for my nephews wedding, and we visited our old neighborhood, I told my brother, I didn’t remember the yards being so big…. He looked at me like I was nuts, and said ” your looking at the whole block dumbass, and that’s the only house left……….. It is freaky !!!

      Report Post »  
    • AB5r
      Posted on April 5, 2012 at 8:19am

      Yes, that thought had crossed my mine, unbelievable. The pictures are of the best ones remaining!

      Report Post » AB5r  
    • Sgt_R_USMC
      Posted on April 5, 2012 at 11:05am

      Those homes didn’t have that land around them before.. those are empty city blocks that formerly had rows of homes! I‘ve seen before and after pictures and there’s an entire website devoted to Detroit being reclaimed by nature; can’t rememeber the name of it but something to do with Urban Prairies.

      Report Post »  
    • AB5r
      Posted on April 5, 2012 at 11:46am

      You would think there would be some sign of prior houses, part of the foundation or something. I’ll have to find that Urban prairie site. There was a plan actually to revert a huge section of Detroit to farmland, guess it will come to that at some point. That will involve taking large sections of the city out of the tax base (whatever it is at this point) and removing police and fire from that area, so there would probably be a savings overall to the city dollar wise. But if they weren’t so incompetent you have to believe that long term it would be better to get some people to redevelop those areas. It is just that no one in their right mind would be willing to invest two cents with those clowns in charge.

      Report Post » AB5r  
    • Sgt_R_USMC
      Posted on April 5, 2012 at 12:23pm

      One of most amazing things is the speed at which nature is reclaiming huge parts of the city and the animal life returning to sites where concrete, steel, and brick had formerly been. It’s actually pretty neat to go on google maps and choose detroit, then street view, then just zoom out and look at all the green and empty neighborhoods that are close to downtown. Who would want to live in that jungle anyway? The answer is: Animals

      Report Post »  
  • Dotado
    Posted on April 4, 2012 at 10:34pm

    Not much difference between Detroit and Greece. Same mentallity.

    Report Post » Dotado  
    • BreeZee
      Posted on April 4, 2012 at 10:49pm

      Detroit is the first “brick in the wall” to fall. This is a prime example of what the unions and the progressives have done to the country. Go back in history and look at most all the problems in the country today and it will led back to the progressives. Everything from piss poor education to escalating crime in the streets is due to progressives.

      New slogan
      **If you vote for BHO, you will be to blame**

      Report Post »  
    • Snowleopard {gallery of cat folks}
      Posted on April 4, 2012 at 11:07pm

      @Dotado: Its also a prime example of why the unions need to be done away with; they have entirely way too much power and control over key areas of the nation…they are thugs and monopolies across the board.

      Report Post » Snowleopard {gallery of cat folks}  
    • Bill Rowland
      Posted on April 5, 2012 at 6:00am

      Snow – the unions have outlived their usefulness. They were needed in Industry and in mining but accomplished their goals and should be disbanded. They are now run by a bunch of thugs who influence politicians and use their rank and file for their own ends and not to help the working man.
      One of the primary reasons that industry is leaving America is the burdensome demands of the unions.
      Notice that the foreign car companies opening production facilities in America are all in right to work states? The employees have good paying jobs with benefits and no unions.
      Look at what the NLRB has tired to do with Boeing in SC, thats political influence and Sweet Old Baracks appointment of Union men to the board.

      OMG 2012

      Report Post »  
  • tmplarnite
    Posted on April 4, 2012 at 10:26pm

    Hey Lefty coast Californidiots …take a good look at Detroit… THAT is what is going to befall you liberal fools…in fact it has already started in the towns around you that are about to declare bankruptcy…Moon Beam Brown is going to ensure it….sad but true!

    Report Post »  
  • castlerock legup
    Posted on April 4, 2012 at 10:17pm

    I used to be proud to admit l live the first 12 years of my life in Detroit back in the 50′s…..But I realized when I was in my 30′s that those dame unions would be the death of my home town someday. Sorry Detroit.
    I should have said “ the unions and the Democratic Party”

    Report Post »  
  • spirited
    Posted on April 4, 2012 at 10:16pm

    The demise of once lovely neighborhoods is unfortunately not just a, Detroit lost work problem. Every major city has experienced this to varying degrees.

    People make a neighborhood….through self- respect and respect for others.

    >It should be the unions that are broken. (period)

    Report Post » spirited  
    • kennebec
      Posted on April 4, 2012 at 10:22pm

      the great society model city now below a million population 1st time since 1890s

      Report Post »  
    • cassandra
      Posted on April 4, 2012 at 11:38pm

      it‘s not only the unions it’s also people that make a career of being on wellfare and the democrapes that allow it. They would rather live in poverty on wellfare then put some effort out and get an education then a job, women that keep having babies without husbands have no charactor or morals and raise their kids the same way then they blame the others for their poverty

      Report Post »  
  • GramSam
    Posted on April 4, 2012 at 10:15pm

    This is what unions do. Which is why I do not understand why public employees need an union, who are they being protected against, us the taxpayers, who pay their wages. It’s assinine.

    Report Post » GramSam  
    • RobMac68
      Posted on April 4, 2012 at 10:57pm

      Protection against the elected official who is generally irresponsible when it comes to financial planning and then they punish the employees with lay-offs and no pay raises. If the employee was at least shown a little bit of decency, why would they vote to go union? I work for a city government and I am union. The employees, in the same job position I am in but work for the county, are non-union and just voted down going union. The difference is they are never thrown under the bus.

      Report Post »  
    • disastros
      Posted on April 5, 2012 at 1:28pm

      Robmac68 I just got off a bird from Detroit doing some work for a union plant i see the bleeding fist hand. It took 12 guys three days to due what i could of done in 45 minuets buy my self. Instead of the job costing the plant 3200 for my services the bill was 12000. Please explain to me how you are not bleeding the system dry!

      Report Post » disastros  
  • AB5r
    Posted on April 4, 2012 at 10:11pm

    As of 2000 per http://detroit.areaconnect.com/statistics.htm
    Detroit demographics
    Race
    White 116599 12.26%
    Black or African American 775772 81.55%
    American Indian and Alaska Native 3140 0.33%
    Asian 9268 0.97%
    Asian indian 2827 0.3%
    Chinese 912 0.1%
    Filipino 951 0.1%
    Japanese 188 0.02%
    Korean 217 0.02%
    Vietnamese 393 0.04%
    Other Asian 3780 0.4%
    Native Hawaiian and Other Pacific Islander 251 0.03%
    Native Hawaiian 46 0%
    Guamanian or Chamorro 45 0%
    Samoan 64 0.01%
    Other Pacific Islander 96 0.01%
    Some other race 24199 2.54%
    Two or more races 22041 2.32%

    Report Post » AB5r  
    • beffuddled
      Posted on April 5, 2012 at 3:37pm

      I don’t see White Hispanic in those demographics…

      It’s a chocolate city, just like Zimbabwe.This will be the face of America if good people don’t stop the Democrats.

      Report Post »  
  • strawberry411a
    Posted on April 4, 2012 at 10:10pm

    DETROIT? Nuke it from space. It’s the only way to be sure.

    Report Post »  
  • JR1984
    Posted on April 4, 2012 at 10:09pm

    And how long have Democrats and Unions been in charge of Detroit? Let them FAIL.. Losers

    Report Post »  
  • spirited
    Posted on April 4, 2012 at 10:07pm

    How sad.
    So many of those buldings were once beautiful…. They don‘t make ’em like that anymore.

    >Change should mean growth. Hopefully some can be saved and ‘lived’ in.

    Report Post » spirited  
  • Tankertony
    Posted on April 4, 2012 at 10:06pm

    The bill is due and the unions are cornered. Naturally, unions, who were so pivotal is bringing about the destruction of my home town, Detroit, wouldn‘t want to be ’rescued’!

    Since they can never say ‘yes’ to a good deal, say hello to my little friend…your new “rescue manager” !!!! lololol…..lololollo….!!!!!!!!!!!!

    Report Post » Tankertony  
  • Mess23
    Posted on April 4, 2012 at 9:56pm

    Just wait until this starts happenning to the States!!! If Gov Walker loses, Wisconsin might be first???

    Report Post »  
  • chips1
    Posted on April 4, 2012 at 9:56pm

    Take the city down. Than hire non-union workers to build more 1957 Chevys. Hire armed security to fend off the Union freaks. Break a few legs. They are used to it.

    Report Post »  
  • felix
    Posted on April 4, 2012 at 9:54pm

    unions and demothugs are the worst !

    Report Post »  
  • Psychosis
    Posted on April 4, 2012 at 9:53pm

    this is what democrat control does to a city

    PERIOD

    ( in the democrats defense, if they deserve ANY , their constituents belong in either prison, or the zoo )

    Report Post » Psychosis  
    • marhee9
      Posted on April 4, 2012 at 9:57pm

      It’s also the unions leadership. In many dealings with these people during my executive days, they never care about what’s best for their own employees. It was only about power and control. The very things they accused us in management of. Typical liberal mindset.
      http://www.youtube.com/watch?v=qW9-6m6dKZw

      Report Post »  
    • Dismayed Veteran
      Posted on April 5, 2012 at 11:24am

      Marhee

      You got it right. I have negotiated labor agreements with unions. In one case, I had to negotiate the impact of re-tooling a plant. The re-tooling would have made the facility world class. 60 employees would have been laid off. We offered a lucrative pension buyout and severance pay. The union voted it down. The plant was sold off. It has now been closed for 5 years.

      I left the world of unionized business. I could no longer deal with union officers betraying their members.

      Report Post » Dismayed Veteran  
    • Daniel
      Posted on April 5, 2012 at 1:25pm

      Hey don’t insult the Detroit Zoo. When I was a kid (1960′s) living just north of Detroit (Clinton twp and Fraser), I used to go to the zoo regularly. Loved that zoo. Too bad, I hear the zoo is having problems too. What ashame. Detroit was a beautiful city, with beautiful homes and building throughout.

      Report Post »  
  • MrButcher
    Posted on April 4, 2012 at 9:50pm

    Detroit is what happens when unions acquire too much power and become inflexible in a given industry. Decay, decline, death.

    “Decay, decline, death” sounds like a good new alliterative slogan for the Obama campaign.

    Report Post » MrButcher  
    • median
      Posted on April 5, 2012 at 12:16am

      Very good mrbuthcher,make some posters,very big posters and take them to obummer rallys.

      Report Post »  
    • beffuddled
      Posted on April 5, 2012 at 3:39pm

      That‘s a bumper sticker I could fit on Matt Lauer’s Limo.

      Report Post »  
  • Carefreeflyer
    Posted on April 4, 2012 at 9:50pm

    Coming to a State near you.

    Report Post » Carefreeflyer  
  • GeorgieJo
    Posted on April 4, 2012 at 9:48pm

    BULLDOZE it DOWN.

    Report Post »  
  • heavyduty
    Posted on April 4, 2012 at 9:45pm

    No more bailouts!!! Let the UNIONS take the city down. Then they can see exactly what they are getting by keeping the UNIONS around.

    Report Post »  
    • unsafe
      Posted on April 4, 2012 at 11:21pm

      All those brown stone houses are just laid to waste. I hope the fools there love there town now and they still say god bless the unons and the Dems.They made there beds now lay in it, rats and all. This is what Gray Ind looks like and its all blacks their to so what does that tell us all? Burn the town down its a goner. until you clean out the trash it well stay the same no matter what you do to help this town.

      Report Post »  
    • Smoovious
      Posted on April 4, 2012 at 11:23pm

      let the unions take control of the city :)

      won’t matter to those of us in the rest of the state, Detroit never reflected Michigan as a whole anyways…

      – Smoov

      Report Post » Smoovious  
    • commonsenseguy
      Posted on April 5, 2012 at 12:14am

      this a portrait of america,and obama and the democommies are the painters,and all of their union,media mater,code pink, la raza,left wing nut jobs are the colors used to paint on the canvas to which is america.

      Report Post »  

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