Detroit is bankrupt and has been for years.
“Orr is resigning from his law firm, Jones Day, to move to Detroit and start on the job March 25. Orr will begin his emergency financial manager job on March 25 and then becomes emergency manager under Public Act 436 on March 28 when the new law takes effect.Orr will be paid $275,000 a year and have an “open-ended” contract.
Orr, 54, a University of Michigan law school graduate, helped lead Chrysler through its 2009 bankruptcy. He specializes in corporate restructuring, bankruptcy, litigation, appeals and legal recruiting and diversity.”
“Under the new emergency manager law, Orr will be able to cancel or modify labor union and vendor contracts and sell city assets with the governor and state Treasurer Andy Dillon’s permission. His bankruptcy expertise will likely be utilized to negotiate with the city’s creditors to reduce Detroit’s $14.9 billion in long-term debts and liabilities.”
This will be the one reason Orr can and should succeed.
After years of Democrat Party rule and financial mismangement Detroit has another chance. All because the good people of Michigan had the good sense to elect a fiscally conservative Governor. After Snyder’s win in 2010 Michigan gained a majority in the Michigan House and increased the Republican majority held in the Michigan Senate. While I don’t personally agree with his backing of the 2009 Auto Bailout, he did accomplish the following:
- Reduced the state’s $46 billion budget by $1.8 billion in spending,
- Abolish the state’s complex business tax in favor of a flat tax,
- Signed a bill which eliminated tax exemptions for higher income pensions,
- Signed “landmark” legislation in December 2012 making Michigan the 24th “Right to Work” state in the U.S., and
- Signed legislation requiring facilities where at least 120 abortions are performed annually to obtain a state license as freestanding surgical facilities
May Governor Snyder have continued success in saving Detroit.