Detroit employees will be placed on unpaid furloughs starting Jan. 1 to avert exhausting the city’s cash accounts if the city council continues to resist reform measures and the state of Michigan blocks the release of much-needed funds, according to news reports.
Mayor Dave Bing and top city officials outlined the approach Nov. 20 as a way to offset $30 million that the state is withholding from the city unless certain conditions are met.
“These actions are necessary to keep the city from falling into further financial distress,” Bing told reporters.
While the mayor said public safety services would not be adversely affected, details on the furloughs were not available.
The nine-member city council has balked at enacting some of the measures aimed at restoring Detroit’s fiscal health sought by the state and agreed to by Bing.
Earlier this year, the city reached a consent agreement with Michigan that gave the state some oversight and allowed the mayor to disregard collective bargaining agreements.