Governor Rick Snyder responds to Detroit's consent deal counter-proposal

Published On: Mar 20 2012 08:55:07 AM EDT
Updated On: Mar 21 2012 08:56:22 AM EDT

Governor Snyder is already responding to Detroit Mayor Dave Bing’s counter-proposal to the governor’s “consent agreement” proposed last week.

DETROIT -

Governor Snyder is already responding to Detroit Mayor Dave Bing’s counter-proposal to the governor’s “consent agreement” proposed last week.

Detroit is deep in debt and each day is inching toward a possible municipal bankruptcy.  Some accounting results have the city running out of liquid cash by the end of May. 

What the governor is proposing

Governor Snyder is proposing a 9 member financial review team that would take spending out of the hands of city council and place the responsibility with the review team to make sure the city doesn’t spend more than it has and to get city finances back in order.

That’s sparked controversy with elected officials who argue that the elected representatives should have the power to fix the problem the city got itself into in the first place, not committee members from the outside.

WATCH: What is behind the consent deal and counter-proposal

What the mayor is proposing

Mayor Bing wants spending and decision making to remain in his hands as well as the city council.

Speaking with Local 4 News Morning, Governor Snyder said he’s anxious to see the Mayor’s ideas, but the idea of financial oversight is to help Detroit, not hurt it.

Also, Mayor Bing will ask the state for more than $100 million dollars to get the city on solid financial ground. Governor Snyder says he’s directing the state treasury department to look into the request.

Full statement from Detroit mayor:

"Sunday evening my team sent a draft of a Financial Stability Agreement to Detroit City Council members as a counter-proposal to Governor Snyder’s draft consent agreement. It was prepared with the input of both my staff and Detroit City Council staff.

The purpose of this Financial Stability Agreement is to give the City the appropriate tools to address the City’s financial crisis and preserve the rights of Detroiters to be governed by the City’s elected officials.

As I’ve said repeatedly, I have no problem accepting help from the state, and this agreement includes an advisory board that provides the state a vehicle to monitor the city’s progress. This draft agreement also includes a mechanism to establish a budget and limit spending, while providing reporting obligations to the board.

But this counter-proposal purposefully shifts from the language of a consent agreement by recognizing the current legal vulnerabilities of Public Act 4. It is designed to provide a reliable roadmap for the City and State to collaborate in resolving the city’s short-term cash flow challenges and long-term structural changes.

My executive staff plans to meet with Council members over the next couple of days to get their feedback to complete a final draft this week. We believe this is an appropriate compromise to the Governor’s proposed consent agreement, and hope we to reach a consensus with the Council, the Governor and the Treasurer."

 

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