Wednesday, December 14, 2011

Detroit delays paying some vendors to make city’s payroll

DETROIT (AP) — The financially struggling city of Detroit has delayed paying some of its vendors and contractors to fund payroll.
Detroit City Council President Pro Tem Gary Brown told the Detroit Free Press for a story today that the delays allow the city to fund its payroll. He said Detroit must act quickly to repair its finances.
Mayor Dave Bing’s office acknowledged that it’s delaying some payments but said the intention is to fully compensate everyone.
Bing has said Detroit faces a $150 million budget deficit and a projected $45 million cash shortfall. He is seeking concessions from city unions.
Michigan Department of Treasury officials have started a preliminary review of Detroit’s finances, a possible first step to an emergency manager’s appointment.

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