What happens in the next 90 days could determine whether Flint is placed under state control again.
City Councilman Scott Kincaid says the city might run out of money before the first pay day in March. "If we do not get the bond and if concessions are not put into place and cuts are not implemented."
If the city can't make payroll or if a deficit elimination plan is not approved in Lansing, a state takeover is a possibility. That's something Kincaid doesn't favor. "It sends the wrong message to businesses and people in the community. IT says we can not manage our finances."
The deficit elimination plan could include an increase in income taxes and concessions for city employees. Yesterday, Mayor Dayne Walling announced a tentative deal with AFSCME local 1600, the city's biggest union.
"The spirit of cooperation is moving forward in the city of Flint. We have a tentative agreement in principle with a double-digit concession," Walling said.
There is no deal with police and fire unions yet, and any proposed income tax increase has to be approved by the state just to get on the ballot. Residents understand the need, but they say meeting that need is a problem.
"I pay taxes. I can not believe that I would live in the house for ever and ever and not see a tax increase. And I think people should be given a lower rate, depending on income," Milly Arbor said.
Eric Parker says he can't sustain higher taxes. "No. Some of us just can't afford it. They are already taking so much away from us."
An increase in taxes could be part of that plan, but the idea has to be approved in Lansing to get on the ballot.
"The next 90 days are crucial for this community, and the direction we are going to go in the next four or five years and the services that we are going to be providing," Kincaid said.
