1. Bing Presents BudgetBudget Darren A. Nichols and Leonard N. Fleming / The Detroit News The Detroit News: http://www.detnews.com/article/20100413/METRO/4130394/Bing- presents-budget--says-it-s--now-or-never--to-save- Detroit#ixzz0kzcKCFL2http://www.detnews.com/article/20100413/METRO/4130394/Bing- presents-budget--says-it-s--now-or-never--to-save- Detroit#ixzz0kzcKCFL2

2. Reduced General Fund Spending Mayor Dave Bing delivered his first budget to the City Council this morning and vowed it's "now or never" to get the city's finances in order. "When I say we have a budget that will finally keep us from spending more than we take in, I have the strategy and the data to back it up," Bing said this morning. "When I say we are cutting the waste and making the city run more like a business, I have the dollar figures and staffing reductions that prove it." The budget proposes reducing general fund spending by $101 million and shrinking the city's workforce to 11,600 from 11,900. It calls for additional revenues of $45 million, including $6 million from collections, $3 million in inventory reductions, $12 million from a hospital audit and $13 million from an income tax incentive.

3. Cutting the Deficit to $85 million Bing, who took office in May, said he's cut the deficit to $85 million from a potential deficit of $440 million. Earlier, the city had described the deficit as $300 million to $325 million. Bing said he shrunk the shortfall with deals to spin off management of Cobo Center, which saved $7 million; $8 million from the Greektown Casino settlement; $5.7 million from emergency collections; $11 million from layoffs and 26 unpaid furlough days and more than $250 million from the issuance of fiscal stabilization bonds. Several members of council praised Bing for delivering a balanced budget and avoiding cuts to police and fire. But Councilwoman JoAnn Watson tore into the mayor today for getting the budget to members today, saying that violates the city charter.

4. How He’ll do It Declining property values and population, and what some critics have called wishful-thinking budgets have left the city battling red ink for years. Last year's budget, for instance, was balanced presuming the sale of several assets -- including the Detroit-Windsor Tunnel and lighting department -- that never materialized. A recent Citizens Research Council report claims the shortfall could even be as high as $425 million. His budget is balanced and calls for the moving of the Department of Administrative Hearings into the Coleman A. Young Municipal Center to save $150,000. The Cable Commission will also move into City Hall to save about $500,000. The Mistersky Power plant will be mothballed shortly, saving about $5 million. Transferring management of the Coleman A. Young Airport, known as City Airport, will save $500,000.

5. Borrowing the Money We’ve seen this before. Why is supply curve horizontal? What happens if lenders are worried about being paid back (on time). Interest Rate Credit market Demand Supply – low risk Supply – high risk r0r0 r1r1 C0C0 C1C1