Thursday, November 17, 2011

Detroit in financial crisis, Mayor Bing says

http://www.bbc.co.uk/news/world-us-canada-15782072

The city of Detroit needs to take immediate action to prevent bankruptcy or a state takeover, Mayor Dave Bing said in a televised address.

Detroit will run out of cash in April and be $45m (£28.5m) short by the end of the fiscal year in June, he said.

Mr Bing urged municipal unions to accept cuts and state leaders to pay the city $220m from a 13-year-old tax agreement.

The mayor also asked for a 0.9% increase in business taxes.

His administration has said Detroit has an accumulated deficit about $150m in its $3.1bn annual budget.

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