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Detroit News columnist on the city’s fight over budget reform and whether Michigan will be forced to intervene.
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-- -- now facing a critical budget crisis Michigan's governor Rick Snyder says the state is willing to bail out Detroit.
If that city agrees to required cops.
The -- has three days to agree to the tons all the state will appoint an emergency manager.
Detroit news columnist Nolan Finley joins the company he's -- -- covering this budget crisis in Detroit.
-- -- got three days to agree to an emergency manager oh three days to agree to.
Chronic -- in Detroit all the emergency managers it put in that and he will do it for what's gonna happen all of.
Well I think that's the big question what will no more today when the City Council meets the big hang up right now.
Is the government governor's insistence that the City Council not ratify.
Labor agreements that were negotiated by mayor -- bank.
Those agreements keep the city.
From privatizing outsourcing consolidating.
Departments.
They continue some of the benefit -- interest and the governor is not gonna put up with us.
-- it's that the -- the city of Detroit and the map.
They are saying look we're standing by the unions we're not gonna cough validity of the unions -- And the government says you want to cut them loose we have don't get the bailout it's a standoff over the union's basically right now.
Today it has and it's worse than.
You don't get the unions are the bailout if they don't some a sign a consent agreement that leaves those contracts open.
So they can be re written.
He's got a point -- emergency manager and that means the mayor and the City Council go to the sidelines they're completely out of the picture under the emergency.
Manager law that sort of unique.
To Michigan so they've got a choice today either throw the unions under the bus or give up their own jobs lay out their staff and just disappear.
Alright what about the threat of violence you've been on our program before talking about -- been on the black Francis and will vote -- the place down if you appoint an emergency management.
Basically -- site will vote on the place down.
If you throw the unions under the boss and that's basically -- did it is that still a factor in these negotiations the threat of another rise.
Well it's still -- -- -- the unions and others are agitating in that direction but you have to keep in mind there are a lot of people in Detroit.
Who have lived for months with no street light and dark dark city and dangerous city.
I know police patrols and their neighborhoods no bus service.
I think a big chunk of the citizens just want those services restored and they don't really care who restores them boss.
It is that there is no solution here I'm reading -- wall street journal editorial today it it -- today.
It says look there's a six billion dollar bill.
-- the Detroit just for the city Detroit six billion dollars for pensions and retiree health benefits.
About six billions coming due at some point that's impossible Detroit simply can never how the money for back.
And that's that's the underlying issue here Detroit is lost 25% of its population over the last decade 250000.
People gone.
Forty square miles of empty space.
Enough to fit the city of Paris and side.
And the tax base the -- income tax property tax revenues have declined to income in kind.
And so the long term prospect for the city.
Without a restructuring and without an immediate addressing of that debt you're talking about is very very Graham.
Nolan -- we thank you very much for your appearance on this program please come NTELOS again soon how this thing works out because we're all very interest in this dollar -- -- -- -- through -- and interestingly only thanks to and I appreciated --
