City’s financial crisis needs to more conversation

In last week’s issue, we discussed what will be the top issues facing the city in this new year.
The debate over whether to allow recreational marijuana sales will continue to rage on – especially now that the council is adopting a new ban on allowing any more retail outlets to open.
There are currently two sales stores already in operation. This week, the council dropped its previous ban, after a voter-driven petition would have forced a vote on the issue.
The new ordinance will sidestep that action.
That issue seems to grab the most attention, but there is another one that is far more pressing: The city’s finances, which are tanking fast.
This topic hasn’t seemed to capture the attention of some councilmembers.
It’s an issue the city administration needs to bring fully to the public’s attention.
Hamtramck is in a multi-million-dollar budget deficit. The city cannot possibly sustain this, without crashing head-first into a financial crisis.
In other words, we are once again facing a state takeover via an emergency manager.
This has happened twice in the last 20 years, and in both instances the state-appointed emergency manager failed to address Hamtramck’s core financial problem: Its pension costs, and the costs related to having our own police and fire departments.
Something has to give, because the city is simply not taking in enough revenue to pay for everything.
We don’t profess to know where any of this is heading, but the issue certainly needs to be addressed publicly.
Posted Jan. 29, 2021

2 Responses to City’s financial crisis needs to more conversation

  1. Nasr Hussain

    January 29, 2021 at 5:12 pm

    If current administration can’t balance the budget, let the state come in and deal with the city’s “core financial problems”.

    They did it twice before and left the city with a surplus, I am sure they can do it a third time.

    Making residents pay for mismanagement by increasing taxes is not a solution the residents of the city have to accept.

  2. Huh

    January 31, 2021 at 10:56 am

    This deficit is on administration and a group on the council that pushed for deficit spending, handed out a golden parachute a city manager not qualified for the job and 6 figure salary to someone to perform a made up job.

    At least it makes sense that someone elected to the council believes better candidates need to run.

    next time the state comes in odds are it will be bankruptcy.

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