There are a series of articles in Sunday's Free Press about the latest from Detroit's Emergency Manager Kevyn Orr. He met with banks last Friday to tell them the state of Detroit's finances. He then offered them less than 10% of what they are owed, saying their chances were not any better in bankruptcy court. (The link is to one of several articles. Each piece of the plan was written about separately. See the sidebar for the rest.)
Here are other provisions of what he will do for Detroit:
* Residents should get a better city. It's amazing how much money is available when banks are not paid. Orr is promising to improve city services, especially focusing on the 40% of streetlights that don't work (though there is a distinction between lighting for a city of 1.8 million as Detroit was in 1955 and the 700,000 who live there now). The other big focus is public safety, where most of the equipment is too old and broken down to be of use.
* Modernize and streamline city computer infrastructure. Most city computer systems appear to be antiques. With new equipment ongoing costs for the payroll dept. (for example) could be greatly reduced.
* A significant chunk of money to remove blighted structures (though probably only a fraction of the money needed to remove them all).
* City workers and pensioners will take a hit. Orr meets with them on Thursday. The big problem is the city of 700,000 has 30,000 employees. That simply isn't sustainable. Alas, the pensioners can least afford that hit. If they don't agree to Orr's terms, bankruptcy court is likely.
It appears Orr is not favoring the banks, which is good. It looks like he intends to make the city livable again. Also good. Alas, the employees and pensioners will be hurting.
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