Financial board signs off on Detroit cuts, 10% decrease in city workers' pay
Source: Detroit Free Press
Financial board signs off on Detroit cuts, 10% decrease in city workers' pay
9:40 PM, July 12, 2012
By Matt Helms and Suzette Hackney
Free Press Staff Writers
In its first major action on righting the city’s finances, Detroit’s financial advisory board Thursday approved Mayor Dave Bing’s plans for $100 million in cuts to the city’s unionized workforce — including a 10% pay decrease, higher out-of-pocket healthcare costs and limits on overtime — that his administration is expected to impose without negotiations.
The wage reduction would also apply to police and firefighters, a cut that Bing has long sought. In addition, workers would move into an 80-20 health plan with higher co-pays and higher costs for brand name and generic prescriptions.
The city’s 10-page summary of the plan was released Thursday at a meeting of the financial advisory board, made up of city and state appointees charged with righting the city’s finances.
Darrell Burks, a member of the board, said the City Council still must approve the cuts. And more are expected, including ending retiree vision and dental coverage in 2013.
Read more: http://www.freep.com/article/20120712/NEWS01/120712060/Detroit-financial-board-signs-off-on-deep-budget-cuts-including-a-10-decrease-in-city-workers-pay?odyssey=tab|topnews|text|FRONTPAGE
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