Bing Wants State to Loan City $150M

Leonard N. Fleming, Detroit News, March 9, 2012

Mayor Dave Bing is seeking $125 million to $150 million in a short-term loan from the state to help fix the city’s [Detroit’s] fiscal crisis, Bing’s office confirmed Thursday night.

Bing’s request follows his State of the City speech Wednesday night where he vowed to keep an emergency manager out of the city and called for “tangible support” from the state, including financial and operational support.

{snip}

Bing’s intention to ask for the loan was first reported Thursday by the Wall Street Journal.

“I think the governor is pretty coy,” Bing told the Journal. “If Detroit fails or doesn’t make it or doesn’t come back as soon as we would like it too, it’s going to cost the state money anyway. It’s you pay me now or pay me later.”

Asked about the possibility of a state-financed bailout of the city, Snyder said this week in an interview with The Detroit News: “That doesn’t make a whole lot of sense if there’s not a solution” to the city’s long-term financial troubles.

“This is to have a sustainable answer,” he said. “This is not to put off a situation until it becomes a problem again,” Snyder said.

The push is on to get city officials to enter into a consent agreement to restructure the city’s finances, with Snyder saying Thursday he’d like a deal done this month.

{snip}

Significant cash assistance for Detroit would need to be appropriated by the Republican-led state Legislature.

One Senate Republican source said it’s unlikely Republicans would approve funding for Detroit, saying there is “no political will” for a bailout.

{snip}

Asked whether it would be a wise investment of state tax dollars to give Detroit a cash-infusion, the governor reiterated: “Not unless there’s a long-term plan to success in place.”

{snip}

The city is on course to run out of cash by next month and faces nearly a $50 million shortfall by May.

Snyder’s 10-person financial review team has until March 28 to recommend that either an emergency manager or a consent agreement be reached.

“What we really need to do is get a consent agreement done,” Snyder said. “I don’t want to get in a situation of having a financial manager in Detroit. The mayor doesn’t either. … And what we really need is an agreement between the mayor and City Council coming together with the state to say here is the plan and here is what’s going to be implemented.”

{snip}

Topics:

Share This

We welcome comments that add information or perspective, and we encourage polite debate. If you log in with a social media account, your comment should appear immediately. If you prefer to remain anonymous, you may comment as a guest, using a name and an e-mail address of convenience. Your comment will be moderated.
  • Mayor Dave Bing is seeking $125 million to $150 million in a
    short-term loan from the state to help fix the city’s [Detroit’s] fiscal
    crisis, Bing’s office confirmed Thursday night.  Bing’s request follows his State of the City speech Wednesday night
    where he vowed to keep an emergency manager out of the city and called
    for “tangible support” from the state, including financial and
    operational support.

    Translation:  We want your money, not your control, honky.

  • Alexandra1973

    Want a sustainable answer?  Deportation.

  • Why doesnt he just go to the last financial business in Detroit: The payday lender?

    • Oil Can Harry

      Because unlike white governors who bail out black cities, payday lenders actually insist on being paid back.

  •  “It’s you pay me now or pay me later.”

    Or what? Blacks will riot like they did in the 1960s? Go for it. Detroit is by TIME and Newsweek’s reckoning 89 percent black. Burn your sub-Saharan slum down, knock yourselves out. Burn baby burn.

    “There was extensive rioting, looting and arson in Detroit as the city was gripped in the throes of a half million strong flash mob. Upwards of 50 dollars worth of damage has been caused.”

    • IstvanIN

      LOL!

  •  Fantastic website, heartily and highly recommended.

  • Bon, From the Land of Babble

    Detroit was going to be LBJ’s Great Society “Model City,” a shining example of the glory and fairness of the welfare state.  

    Detroit IS a shining example —  of everything that can go wrong when people are given and promised something for nothing in perpetuity.

    Detroit, “The Most Liberal City in the World,” symbolizes everything that is wrong with the federal government. 

    Imagine a city, a statist’s dream come true, all his wildest lefty platforms enacted at once:

    *A “living wage” ordinance, far above the federal minimum wage, for all public employees and private contractors.

    *A school system that spends significantly more per pupil than the national average.

    *A powerful school employee union that militantly defends the exceptional pay, benefits and job security it has won for its members.

    *Other government employee unions that do the same for their members.

    *A tax system that aggressively redistributes income from businesses and the wealthy to the poor and to government bureaucracies.

    How has this worked out?? 

    In 1950, per capita, Detroit was the wealthiest city in America. Today, the Census Bureau reports that it is the nation’s 2nd poorest major city, just ahead of Cleveland. The city has the highest unemployment rate among all large U.S. cities.

    Oh, and the city is 82.7% black, so ALL of Detroit’s problems will be blamed on White racism and oppression even though Whites were ethnically cleansed from the area after the 1967 riots.

    Mayor Dave Bing is seeking $125 million to $150 million in a short-term loan from the state to help fix Detroit’s fiscal crisis.

    Foxnews reports:  A chunk of an $11 million stimulus grant meant to provide low-income Detroit residents with clothing for job interviews reportedly aided just two people — far short of the 400 job-seekers the money was meant to help.
    Bon

    • A chunk of an $11 million stimulus grant meant to provide low-income Detroit residents with clothing for job interviews reportedly aided just two people — far short of the 400 job-seekers the money was meant to help.

       And one of those people was likely Kwame Kilpatrick, the ex-mayor of Detroit and now convicted felon.

      • Bon, From the Land of Babble

        And one of those people was likely Kwame Kilpatrick, the ex-mayor of Detroit and now convicted felon.

        No Doubt.  Here’s an update, Feb. 2012:Fort Worth Star-Telegram:

        Ex-Detroit Mayor Kwame Kilpatrick is whining about an order from Texas parole officials that he find a job.

        In an email to a Texas parole official, Kilpatrick is unhappy that the state has told him he can’t make some public appearances and out-of-state trips, hurting his ability to earn money.

        “I’m incredibly confused about why I’m being treated differently than ANYONE else,” wrote Kilpatrick, who lives in Grand Prairie.

        Kilpatrick was released from prison after serving a year on a charge of obstruction of justice but faces a federal corruption probe for what the government describes as a pay-to-play scheme.

        Bon

  • JackKrak

    Detroit wants a “loan” (cough, cough) of $150 million?

    I’ve got a better chance of actually cashing in on one of those Nigerian scam emails than Michigan ever has of getting paid back.

  • The state will say “loan,” the city will say “gift.”  Then it will be up to Judge Judy to decide, those are the only cases she ever takes.

  • iforgot

    Sounds like one of those ‘loans’ you give your kids. 

  • Detroit_WASP

    Detroit would literally be the third world if not for all the state and federal aid that goes pouring in that dump.  I’m not joking, if not for all the tax dollars that suburbanites like my self pay in federal and state taxes, to support Detroit, they would not be able to keep the lights on or the water and sewer system working.  There would be diseases seen generally only in the third world if not for all the FREE health care they get. 

    I read it costs $30,000 for a woman to have  a “normal” baby in a hospital.  If the baby has problems the cost could be in the millions.  And 80% of Detroiters are born out of wedlock and on public assistance.   Almost none of them have heath insurance.  The cost of bad  and irresponsible behavior to our society is astonishing.

    Detroit is the future of western civilization.  This is what happen when you have people with an average IQ of 80-85 running a once great city built by a more intelligent group.  The third worlders will all starve when there aren’t enough white westerners to support them anymore.   It won’t be pretty.

  • Communist Sen Levin D- MI (of the tribe) will approve and promote this act.  Another example of taking from achievers, whites, and giving to unachievers, blacks.

  • Guest

    Give them the loan. In fact, give them whatever they need to keep the city running. Detroit has something like 700,000 people, 80 per cent of them black. If the city falls apart completely, they’re going to spread all around the country. We need to keep this problem contained.