Kevyn Orr

Steve Carmody / Michigan Radio

DETROIT (AP) - Detroit's emergency manager says the city no longer will be in a financial emergency when it officially exits bankruptcy.

  That means Kevyn Orr's job will be done once the bankruptcy court approves the exit. He's recommending that he relinquish his position as emergency manager.

Marijuana plant.
USFWS

This Week in Michigan Politics, Emily Fox and Jack Lessenberry discuss whether the legislature will be able to come up with a plan to fix Michigan's roads before the end of the year, a challenge to a Grand Rapids law decriminalizing marijuana, and what’s next on Detroit’s road to recovery.


City of Detroit

Detroit emergency manager Kevyn Orr took the stand again Tuesday in the 22nd day of the city’s bankruptcy trial.

Orr testified mostly about Detroit’s recent settlement with bond insurer Financial Guaranty Insurance Corporation. That deal is outlined in a draft of the ninth version of Detroit’s plan of adjustment (the city’s proposal to “adjust” its debts in bankruptcy court).

Detroit residents met Monday night for a discussion on how to move forward after the elimination of Citizens District Councils (CDCs).

CDCs have been around since the Blighted Area Rehabilitation Act of 1945 granted Michigan cities the right to acquire blighted properties using the power of eminent domain.

Sam Beebe

Detroit emergency manager Kevyn Orr will continue testifying today in Detroit’s bankruptcy trial.

Orr, a bankruptcy lawyer, took the stand for the first time Wednesday afternoon. He’s the main architect of Detroit’s bankruptcy restructuring plan, formally known as a plan of adjustment.

That plan is ultimately what’s on trial; Judge Steven Rhodes needs to approve it for the city to emerge from bankruptcy.

But while Orr is a crucial witness for the city, there was nothing particularly new or noteworthy about his initial testimony.

user memories_by_mike / Flickr

This Week in Review, Jack 
Lessenberry and Rina Miller discuss the latest polls for Michigan’s governor and U.S.Senate races, Detroit’s decision to keep emergency manager Kevyn Orr on board for now, and the latest scandal with Aramark, the state’s food services provider.

Yesterday Detroit’s City Council made a decision so sane, sensible and rational it may have left some flabbergasted.

The council voted unanimously to transfer power for all day-to-day decisions back to the city’s elected leadership.

But at the same time, emergency manager Kevyn Orr will remain on the job for issues having to do with Detroit’s ongoing bankruptcy case. That trial is still going on in federal court in Detroit, proceedings that may continue three more weeks.

Kevyn Orr
Sarah Cwiek / Michigan Radio

 

Eighteen months is how long emergency managers are allowed to stay in power under Michigan's emergency management law. It has now been 18 months that Kevyn Orr has been in charge of Detroit's finances.

There have been closed-door meetings between Mayor Mike Duggan and Detroit City Council this week, talking about Orr's future.

Michigan Radio's Detroit reporter Sarah Cwiek says the meeting has been working on the transition process but specific details are still unknown. 

Detroit Free Press columnist Nancy Kaffer says Orr has been walking a fine line, and his current situation is a strange place to be.

*Listen to our conversation with Sarah Cwiek and Nancy Kaffer above.

State of Michigan

As of Friday morning Detroit’s elected officials are back in charge of city operations—but Kevyn Orr is still technically the city’s emergency manager.

That’s because Detroit officials have approved a deal stripping Orr of most of his powers.

In the deal approved by the City Council and Mayor Mike Duggan Thursday, Orr will stay on as emergency manager until Detroit exits bankruptcy.

Detroit Emergency Manager Kevyn Orr speaking at the University of Michigan.
U of M

After voters rejected the state's old emergency manager law in November 2012, Michigan lawmakers quickly came up with a replacement.

State-appointed emergency managers could still take control over local governments and school boards, but under the new law, they could do so for a limited amount of time. 

The new law, Public Act 436, allows for local governments to end a state-appointed emergency manager's term after 18 months. From the law:

If the emergency manager has served for at least 18 months after his or her appointment under this act, the emergency manager may, by resolution, be removed by a 2/3 vote of the governing body of the local government. If the local government has a strong mayor, the resolution requires strong mayor approval before the emergency manager may be removed. 

Orr started work as Detroit's emergency manager on March 28, 2013, so his 18 months is up in the next few days.

Almost everyone thought Detroit City Council and Mayor Duggan would vote to end Orr's appointment, but with Detroit's bankruptcy process wrapping up in court, the talk has changed.

Sarah Cwiek / Michigan Radio

Detroit emergency manager Kevyn Orr has joined private, ongoing talks between Mayor Mike Duggan and the Detroit City Council about his future.

Under Michigan’s emergency manager law, the City Council could vote to remove Orr this week – but only if Duggan and Gov. Rick Snyder agree.

The parties have been meeting in closed session since Tuesday to discuss a transition plan. No one has been willing to speak publicly about those discussions.

Sarah Cwiek / Michigan Radio

The Detroit City Council has rejected a proposal to transfer thousands of city-owned properties to the Detroit land bank.

The resolution, put forward by Detroit emergency manager Kevyn Orr, would move up to 45,000 tax-reverted properties to the Detroit land bank.

And it would have moved all such properties the city acquires in the future directly to the land bank, bypassing the Council entirely.

Council members bristled at that last portion of the deal. They rejected the measure unanimously.

Sarah Cwiek / Michigan Radio

The Detroit City Council is slated to vote this week on a plan that would speed big city property transfers to the Detroit land bank.

Detroit emergency manager Kevyn Orr proposed the measure last week, allowing the city to transfer some city-owned properties directly to the land bank without Council approval.

It would move up to 45,000 tax-reverted properties to the Detroit land bank’s control, and convey any such land the city acquires in the future directly to the land bank.

Currently, the City Council has some say in how the city disposes of those properties.

Detroit emergency manager Kevyn Orr got the City Council to delay a key vote that paves the way for a new bridge connecting Detroit and Windsor.

The Council was supposed to vote Monday on whether to transfer about 300 city-owned properties to the Michigan Land Bank for $1.4 million as part of the New International Trade Crossing project.

Detroit retirees voted overwhelmingly to approve emergency manager Kevyn Orr's plan of adjustment.

That plan includes the unprecedented "grand bargain"--a mixture of public and private funds that will minimize cuts to city pensions, while protecting the Detroit Institute of Arts' assets from other city creditors.

But retirees aren't the only group of creditors who voted on the plan. Other groups did as well--and not all voted "yes."

Detroit Institute of Arts

The proposed "grand bargain" that would soften the blow to Detroit pensioners while preserving the city's art collection has cleared a major hurdle.

That's because city retirees have voted for the plan by an overwhelming margin.

As city creditors, pensioners got to cast ballots for or against emergency manager Kevyn Orr's bankruptcy restructuring. The grand bargain is an integral part of that plan of adjustment.

We should know how Detroit retirees voted on the proposed “grand bargain” later today.

City pensioners had until July 11th to vote on the city’s bankruptcy restructuring plan, formally known as the “plan of adjustment.”

The grand bargain is just one part of that plan.

It would use more than $800 million in combined state and private foundation dollars to backstop city pension funds, minimizing retiree losses.

State of Michigan

Three years ago, only a half-dozen cities and school districts in Michigan were being run by state-appointed emergency managers.

Today, 17 are in some phase of receivership.

That proves not only cities and schools in Michigan are facing tough times, but that Governor Snyder is making vigorous use of Public Act 436, the state's emergency manager law.

Bridge magazine writer Chastity Pratt Dawsey examines the effectiveness of the law and how it measures up to similar laws in other states in a report for the magazine's latest issue. She joined us today.

We also had Lou Schimmel on the show. He's served as emergency financial manager or emergency manager for Ecorse, Hamtramck and Pontiac. Right now he's on the transition advisory board for Pontiac. Our two guests explores a number of questions:

First off, why does the appointment of an emergency manager result in such emotional responses from residents?

State of Michigan / Michigan.gov

Detroit emergency manager Kevyn Orr has given the city’s leaders a pay raise.

Orr signed an order hiking city appointees and elected officials’ pay by 5% on June 30th. It went into effect July 1.

Detroit Mayor Mike Duggan seemed genuinely surprised to hear that news on Tuesday.

Mike Duggan

The city of Detroit continues to work through bankruptcy, at the same time Mayor Mike Duggan, now six months into his term, has been working to return basic city services to residents in the city. 

Joining us today were Ken Sikkema, Former Senate Majority Leader and Senior Policy Fellow at Public Sector Consultants and Susan Demas, publisher of Inside Michigan Politics.

Detroit remains under the emergency management of Kevyn Orr, but Duggan really positioned himself as more of a chief operating officer when he was running for mayor. How much of what we see happening in the city is the result of efforts by Orr and how much of it is Duggan?

Listen to the full interview above.

Detroit is following through on its effort to privatize garbage collection.

Starting next week, a private contractor will pick up the trash for some Detroit households on the city’s east and southwest sides. Another company will start serving the rest of the city early next month.

Gary Brown, Detroit emergency manager Kevyn Orr’s chief operating officer, says the new system will offer more services at roughly the same cost.

User: mattileo/flickr

It’s Thursday, the day we talk Michigan politics with Ken Sikkema, former Senate Majority Leader and senior policy fellow at Public Sector Consultants, and Susan Demas, publisher of Inside Michigan Politics.

This week, Jennifer White, host of All Things Considered, examines the latest developments surrounding the Detroit bankruptcy case. Emergency manager Kevyn Orr spent two days in Lansing this week, trying to galvanize lawmakers to support a grand bargain to reinforce Detroit pensions while protecting the Detroit Institute of Arts. The state is being asked to contribute $350 million, but House Speaker Jase Bolger has balked at the proposal.

Ken Sikkema emphasizes that because it is an election year, Speaker Bolger will have a difficult time getting full Republican support to contribute state money to help with Detroit’s financial woes, and that in order for a deal to proceed where the state will contribute financially, it will rely on bipartisan support.

“The speaker is walking a fine line here, between driving a hard bargain to show that Republicans actually got something in the way of more accountability so that this doesn’t happen again,” Sikkema explains. “Down in Detroit, the pieces are starting to fall into place to make this happen and the last big piece is state participation. But he’s never going to get full Republican support for this, particularly in an election year, it’s going to have to be a bipartisan vote.”

LiveStream

Detroit emergency manager Kevyn Orr is spending a couple of days in Lansing for closed-door meetings with state officials. His primary mission is to convince reluctant state lawmakers to support the Detroit bailout package.

The state’s share, which would have to be approved by the Legislature, is $350 million dollars. That would help mitigate cuts to pension benefits as part of the city’s bankruptcy, and ensure the assets of the Detroit Institute of Arts are safe from the auction block.

One of the most important aspects of the Affordable Care Act is consumer choice. More choice means more competition among insurers, and that can lead to lower costs for consumers.

But if you live in a rural area, you may not have a whole lot of choices when it comes choosing a health plans. On today's Stateside, we took a look at health care in Michigan's rural areas.

Then, Michigan’s new crowdfunding law opens the door to everyday people who want to invest in Michigan-based startups and small businesses. We heard about the benefits and risks that come with crowdfunding for equity.

And, we spoke with Garrison Keillor about the 40th anniversary of A Prairie Home Companion and his upcoming book.

First on the show, Detroit Emergency Manager Kevyn Orr is in Lansing today and tomorrow, getting face-time with the lawmakers whose vote is crucial to the so-called grand bargain, the complicated deal to protect city retirees and the collection at the Detroit Institute of Arts.

Orr heads to Lansing with a new piece of the puzzle in hand: a tentative five-year deal reached Monday with AFSCME, Detroit's largest employee union.

Detroit News reporter Chad Livengood joined us today to give us an idea of what progress has been made and what lies ahead for the city.

Kevyn Orr
Sarah Cwiek / Michigan Radio

Detroit Emergency Manager Kevyn Orr is in Lansing today and tomorrow, getting face-time with the lawmakers whose vote is crucial to the so-called grand bargain, the complicated deal to protect city retirees and the collection at the Detroit Institute of Arts.

Orr heads to Lansing with a new piece of the puzzle in hand: a tentative five-year deal reached Monday with AFSCME, Detroit's largest employee union.

Detroit News reporter Chad Livengood joined us today to give us an idea of what progress has been made and what lies ahead for the city.

Listen to the full interview above.

Detroit’s historic bankruptcy case has picked up steam in the past couple of weeks.

The city reached tentative agreement with some of its major creditors, clearing the way for a relatively quick exit from bankruptcy court.

But there are still some key missing pieces that could derail the process, and now they’re mostly outside the city’s control.

“Now is the time to negotiate”

Pension protest in Detroit.
Sarah Cwiek / Michigan Radio

This has proven to be a watershed week in Detroit’s bankruptcy case, which is now moving along at lightning speed.

On Tuesday, representatives for Detroit’s two pension funds reached tentative settlements with the city.

The deals would spare Detroit’s retired police officers and firefighters any direct cuts to their pensions, while non-uniform retirees would take 4.5% cuts.

Here’s the one thing certain about Detroit’s bankruptcy: You don’t want to play poker with Kevyn Orr.

The state-appointed emergency manager had everyone convinced city workers and retirees were facing a steep 26% cut in their pensions – a cut that would jump to 34% if they didn’t quickly approve the smaller amount.

The city was getting ready to mail them all ballots explaining the cuts and asking for their approval.

Then, voilà – yesterday, everything changed. Suddenly, negotiators came up with a deal whereby most pensions would be cut by less than 5%. Police and fire retirees pensions won’t be cut at all.

There seems little doubt that the 32,000 employees and retirees will approve this deal. Yet we need to remember two things. First of all, this is not final yet – not by a long shot.

Something else that’s still very uncertain has to happen first. The Michigan Legislature has to approve contributing $350 million to a fund designed to shore up the pensions and protect any of the work in the city-owned collections in the Detroit Institute of Arts from being possibly sold for the benefit of the creditors.

Detroit’s bankruptcy case is throwing a wrench in the city’s usual budget process.

Detroit Mayor Mike Duggan didn’t give his charter-mandated city budget address as scheduled Monday.

Rather, officials told City Council members that Detroit needs to update its plan of adjustment first. That’s the city’s restructuring blueprint for getting through bankruptcy.

Detroit chief financial officer John Hill said that since the plan will shape the city budget, it doesn’t make sense start talking now.

Judge Steven Rhodes approved a key settlement in Detroit’s historic bankruptcy case Friday.

The deal will settle a costly interest-rate swaps agreement with two banks, UBS and Bank of America, for $85 million.

Emergency manager Kevyn Orr has pushed hard for such a deal. Detroit had guaranteed the swaps with casino revenue, and paid out about $200 million since 2009.

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