Leaders Understand the Need for Sacrifice
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Posted by Charles Pugh on Tuesday, January 12, 2010 at 5:00:00 PM EST

City Council Members in the city of Los Angeles receive a yearly salary of $178K. This pay rate is comparable to the $102K received by Philadelphia Council members, the $104K paid out to Seattle officials, the $111K earned by Chicago Aldermen, and the $125K given to D.C council members.

In this context, my colleagues and I offered our consent to accept a 10% pay reduction in salary determined by the Elected Officials Compensation Commission, approximately reducing my salary from $84K to $77K. The commission has not changed the pay rate for officials in nearly twenty years however; my colleagues and I accepted this reduction in pay because we recognize the grave financial state our city is in and acknowledge that our fiscal issues cannot be solved without sacrifice.  

As Council Members, we have been forced to grapple with the reality of our city’s fiscal health. With ballooning cost and dwindling revenue, our city faces a $300 million cash crisis. Nevertheless, I have full faith that the citizens of Detroit have elected the right people to handle this challenging task. Our decision to accept a pay cut exemplifies our commitment to seriously address our budget deficit and cash shortfall. This time around Detroit has leadership willing to put public interest above personal gain.  
Nevertheless, the 10% we have sacrificed will not solve our budget problems alone but it must be a part of a series of well-thought out policies. For instance, in the spirit of the cuts being asked of city employees and officials, we must find a way to add our contractors and departments to this conversation.  
The city spends nearly $2 billion every year on contracts. So in good faith, contractors, who benefit greatly from doing business with the City, should be willing to give back 10% of their contract award, especially if they have been awarded a contract in excess of a million dollars. Likewise city departments should work to reduce their expenditures by 10% as we all must bring something to the table as Detroit rebounds.  

I am proud of my colleagues. There is a real sense that we get it – we understand! The people of Detroit have hoped for leadership that does not ask of others without being willing to lead by example. Detroit, we are on the rise!
-Charles





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