The city of Dearborn plans to restructure health care benefits and cut spending as it faces a $22 million deficit equivalent to firing 349 full-time employees.
The Metro Detroit city cited rising costs for the deficit, including $3.2 million in wage and benefit increases, $2.7 million for deferred fleet maintenance, and $1.2 million for increased fuel and other supplies.
However, budget details note the city has consistently spent more than it collected in revenue.
Dearborn Mayor Abdullah Hammoud told residents at a public meeting last week: “You are not going to lose benefits,” Fox2 reported. “At no point in time will the rug ever be pulled away from them, we never want to do that.”
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