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Bing Calls For Cuts, Privatization

The Mayor of Detroit says the city will run out of money by next Spring and faces a state takeover of its finances. The Mayor plans to cut the debt by privatizing significant portions of city services. A recent report finds that Detroit will be out of cash by April and have a budget shortfall of 45 million dollars by July. Detroit Mayor Dave Bing says the city had a 20 percent spike in homicides this year and can’t afford cuts in police, fire or emergency medical personnel. But he says even those departments need to accept reductions in wages and benefits. Bing said, “We must cut pension and medical costs by more than 40 million dollars annually and continue strategic layoffs.” Those layoffs could include several thousand city workers plus the sale of Detroit’s troubled lighting department and bus system to private companies.