DETROIT – Coronavirus (COVID-19) has severely impacted two of Detroit’s key revenue streams: casino gaming and income tax.
Detroit Mayor Mike Duggan is projecting a $100 million shortfall for this fiscal year, with the possibility of a $200 million shortfall the following year.
“Unfortunately we don’t have the luxury of only dealing with one problem at a time,” Duggan said.
The city’s rainy day fund post-bankruptcy has about $100 million in it, according to the mayor. It’s not enough to make up the difference.
Duggan is spending the next 24 hours meeting with city council members and union leadership. He believes they will be able to keep city services intact, but it will require cuts.
Although initial information we’re getting suggests police and fire will not be cut.
The mayor has a news conference to address the proposed cuts scheduled for 7 p.m. Tuesday.