Detroit Mayor Dave Bing on Monday sounded the alarm to City Council that if nothing happens quick, the city is headed off a financial cliff.
“We want to push this forward as fast as we can so that we can get cash to run the city. Without that, we’re dead,” Bing said.
Bing told City Council Monday during an emergency meeting that state revenue sharing likely will be withheld unless a lawsuit challenging Gov. Rick Snyder's consent agreement with the city is dropped.
Detroit faces a budget deficit of more than $200 million and in April entered into the consent agreement, which allows the state to have a role in revamping the city's bleak fiscal condition.
Bing said city Corporation Counsel Krystal Crittendon needs to cease her action claiming the consent deal is invalid because Detroit is owed past revenue sharing. Snyder disputes that claim.
"I demand that Corporation Counsel withdraw the lawsuit and I also demand the City Council vote to require the corporation withdraw the lawsuit.
The consent agreement allowed Detroit to avoid a state-appointed emergency manager.
A judge will hear Crittendon's suit Wednesday.
A Treasury official warned last week that more than $80 million in revenue sharing could be in jeopardy if the suit is not dropped early this week.
Bing's office has said the city would be able to meet Friday's payroll without the revenue sharing, but would have no money left.
The emergency meeting ended with no settlement on what should be done about the city’s lacking cash flow.
Detroit financial manager Jack Marktin said last week that the city will run out of cash
"We're looking at a week from today, June 15, I think, would be the day," Jack Martin said.
Detroit unions upset over lack of negotiation
Some Detroit union leaders accuse Bing and the city of backing them into a corner by refusing to negotiate new collective bargaining deals with less than a month before some of the contracts expire.
Union strategy sessions continue to focus on what could be a June 30 contract showdown.
"We looked at this back in December. We kind of expected things to go south," said Joseph Duncan, Detroit Police Officers Association president. "It's my impression they are going to try to impose a contract on us."
Duncan said his and other unions haven't bargained with the city since earlier this spring when the unions agreed to pension, benefits and work rule changes. The tentative agreements were intended to help the city stave off any attempt by the state to appoint an emergency manager.
Part of the consent agreement calls for the city to have either negotiated or imposed new labor deals by July 16 for contracts expiring this summer.
"People are saying if (the city) goes to bring somebody in here to take their jobs that there is going to be hell to pay," said Ed McNeil, a spokesman for American Federation of State, County & Municipal Employees Council 25. "When you start to roll over people you are going to get a lot of push-back in this town, which I don't want to see."
City unions have not voted on whether they will strike, but a coalition of about 20 bargaining units has filed an unfair labor practices complaint with the Michigan Employment Relations Commission alleging the city failed to execute the tentative agreements.