Furlough days to soften Detroit's cash shortfall
DETROIT (AP) — Detroit's mayor says he expects to impose unpaid furlough days and other cost-saving actions Jan. 1 to make up for at least $10 million the city won't get to bolster its cash flow.
Dave Bing said Wednesday the cuts are necessary because the City Council failed to approve a contract called for under Detroit's fiscal overhaul plan.
The council voted 8-1 Tuesday to delay action on a $300,000 contract for the Miller Canfield law firm to advise Bing on financial matters.
The city's top lawyer told the council the contract could be a conflict of interest because Miller Canfield wrote milestone agreements in Bing's reform program.
The state says Detroit won't get Tuesday's $10 million in bond money. An additional $20 million due Detroit next month also is in danger.