"The city could set aside $30 million this year — three times as much as initially planned — to cover an estimated $500 million pension shortfall, Detroit's CFO John Hill said Monday.
Hill revealed the more aggressive plan to deal with surprise budget problem first disclosed during Mayor Mike Duggan's State of the City address in February — a problem that emerged despite Detroit filing bankruptcy three years ago and shedding $7 billion in debt.
The payment is part of an overall plan to contribute as much as $70 million in the short-term to deal with a pension shortfall that must be repaid starting in 2024.Duggan blamed the shortfall on an unnamed bankruptcy consultant using outdated mortality tables to calculate life expectancy of city retirees.
...Meanwhile, the city is trying to pinpoint the exact size of the shortfall.
The city is close to hiring a firm to conduct pension and actuarial services.
A firm could be selected in two weeks, Hill said.
"The number is about $500 million higher than expected," Hill told commissioners.
"What we really want to come out of this contract is what that range is going to be..."
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