By Darren A. Nichols
The Detroit News
DETROIT — The City Council on Thursday approved the city’s 2012-13 budget, keeping much of Mayor Dave Bing’s proposed $250 million in cuts intact but restoring some departments slated for elimination.
The council passed the $1.1 billion budget by a 6-3 vote. Council members JoAnn Watson, Kwame Kenyatta and Brenda Jones voted against the budget, saying it is based primarily on the consent agreement between the city and the state, which they oppose. The city’s corporation counsel has issued an opinion that the consent agreement is illegal due to unpaid debt the state owes Detroit.
“We did the fiscally responsible thing, (but) it’s tough,” Councilwoman Saunteel Jenkins said, referring to the budget. “It means a lot of people are going to lose their jobs (and) a lot of city services are going to be cut back. We have to make these tough decisions now to get to a better place in the future.”
Corporation Counsel Krystal A. Crittendon is expected to take part in a conference call with state Treasurer Andy Dillon and Attorney General Bill Schuette on Wednesday to address her legal objections to the agreement. Council members have delayed making appointments to the board that will oversee the agreement until the matter is settled.
“This limbo state is not productive or helpful,” council President Charles Pugh said.
The budget represents the start of Detroit’s restructuring efforts following the approval of the consent agreement in April. Rough cash projections over three years indicate the city could end 2015 with a surplus of $240 million, ending years of deficits. The city’s accumulated deficit is more than $200 million.
The three members who voted against the budget said they did so because of Crittendon’s opinion that the consent agreement violates the city charter.
The city alleges the state owes $224 million in revenue sharing and a $4.5 million past due water bill.
“The reality is that it (the budget) is a product of the consent agreement,” said Kenyatta, who urged his colleagues to vote their conscience.
Bing said he looked “forward to reviewing the budget council approved today and bringing this year’s budget process to a close.”
“My administration will continue to implement our plan to financially stabilize the city,” he said.
In April, Bing proposed a budget that sought $250 million in cuts across all departments and the elimination of 2,566 jobs. The proposal is on his desk for approval. The budget reduces the deficit by $75 million and includes a 10 percent pay cut for police officers.
It reduces spending by $75 million to $340 million in the Police Department and cuts officers through attrition and work rules to about 2,950.
The Fire Department’s budget will decrease about 13 percent to about $160 million.
The council’s changes included:
Restoring the Law Department budget to $15.5 million. Bing had proposed a cut of $8.6 million.
Maintaining the Human Rights Department.
Providing enough funding through the General Services Department to maintain comfort stations at Belle Isle.
Restoring $2.3 million to the Department of Elections. The Bing administration recommended a budget of slightly more than $5 million.
Providing six months’ worth of funding for the city airport and the Health & Wellness Promotion Department. The health department would get about $4.9 million of its $6 million budget while a proposed management institute is created to run it.
“I applaud the mayor for cutting $250 million out of the budget.
“I had been pushing it for two years,” Council President Pro Tem Gary Brown said. “I may not be as happy as where the cuts came from, but we made the adjustments necessary and the important thing now is to hold the administration’s feet to the fire to restructure and reorganize.”
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