Mayor Mike Duggan Says Detroit Can Succeed Under Bankruptcy Plan
DETROIT (WWJ/AP) - Detroit Mayor Mike Duggan has told a federal judge the city has a feasible plan with the resources it needs to successfully emerge from bankruptcy protection.
As lawyers representing Detroit wrapped up their case in Detroit's bankruptcy trial, Duggan testified Monday that the city's finances will never take care of all city services and he's looking to develop partnerships with churches and other private entities.
"I support this plan, and I believe it is feasible," Duggan said, though he warned of factors outside of the city's control.
"I can't predict a national recession," he said. "I can't predict a cut in state revenue sharing. I can't predict other casinos being approved," he said. Detroit gets a share of the taxes on the $1.35 billion in annual revenue from the city's three casinos.
"This is going to be tight, and it's not without risk," he continued.
On the stand Monday, Duggan also testified about what he's been able to accomplish this year like having $20,000 new streetlights installed — but he admits Detroit police officers are still underpaid. While Detroit cops make $28,000 to $29,000 a year to start, some officers in the suburbs are starting at $45,000.
The mayor said the plan of adjustment that bankruptcy Judge Steven Rhodes must approve would allow the city to hire 150 retried cops at $20 to $22 an hour without benefits.
Rhodes is seeking assurances that elected leaders will take the steps needed to get the city's operations back on track should he approve the plan to shed $7 billion in accumulated debt. The city's plan includes spending $1.7 billion over the next decade to improve police, fire and other services.
The bankruptcy plan was drafted by emergency manager Kevyn Orr, who was hired by state in March 2013 to fix Detroit's finances. That July, he made Detroit the largest U.S. city to file for bankruptcy. He's no longer directly running the city after Duggan and the Detroit City Council regained their authority last month.
Duggan said that not enough progress has been made in improving city services, a key to halting a continuing population drain. Detroit's population fell to an estimated 681,000 last year from a 1950 peak of 1.85 million.
In particular, the mayor cited a shortage of buses that prevents Detroit from meeting its posted schedules.
"We're probably at about 10 percent of where we need to be," Duggan said. "We're building in the right direction. It's going to be a multi-year process."
Proceeding aren't over yet. Rhodes still needs to hear from his own expert, and other witnesses could be summoned.
[Continuing Coverage: Detroit Bankruptcy]
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