In Michigan
4:27 pm
Thu January 5, 2012

Mayor: Detroit won't run out of cash by April

DETROIT –

Detroit's mayor has presented a new financial plan to the City Council that he says shows the city no longer is at risk of running out of cash by April as previously expected.

Mayor Dave Bing on Thursday released a financial and operational restructuring plan update. It highlights savings from 1,000 imminent layoffs, overdue payments from the Detroit Public Schools and a corporate tax increase Bing says will mitigate a cash shortfall.

Bing presented the update Thursday afternoon to the Detroit City Council.

A review team is looking into Detroit's finances - a step in a process that could lead to Michigan taking over the city's government. Its recommendations will be forwarded to Gov. Rick Snyder.

Auditors have said Detroit may run out of money as early as April.