Detroit financial crisis http://michiganradio.org en Judge rules Detroit is eligible for bankruptcy, city can protect itself under Chapter 9 http://michiganradio.org/post/judge-rules-detroit-eligible-bankruptcy-city-can-protect-itself-under-chapter-9 <p><em><span style="line-height: 1.5;">U.S. Bankruptcy Judge Steven Rhodes ruled this morning that the city of Detroit is allowed to protect itself from its creditors under Chapter 9 municipal bankruptcy protection. In his ruling, Rhodes said pensions can be treated like any other debt and are subject to potential cuts. We've been following the news as it unfolds today.</span></em></p><p><strong style="line-height: 1.5;"><span style="line-height: 1.5;">Update 3:31 p.m.</span></strong></p> Tue, 03 Dec 2013 20:31:22 +0000 Mark Brush 15512 at http://michiganradio.org Judge rules Detroit is eligible for bankruptcy, city can protect itself under Chapter 9 Judge will soon decide whether Detroit will get bankruptcy protection http://michiganradio.org/post/judge-will-soon-decide-whether-detroit-will-get-bankruptcy-protection <p>Today is the last day U.S. Bankruptcy Judge Steven Rhodes will accept documents from all sides of the Detroit bankruptcy case.</p><p>Rhodes will then look at all the evidence and decide whether the city of Detroit can reorganize itself under Chapter 9 bankruptcy laws.<span style="line-height: 1.5;">&nbsp;</span></p><p>Rhodes has heard a lot. The city's future path will be up to him.</p><p>His decision will be based upon a) whether the city truly has no other options to pay its debts, a b) whether the city negotiated in good faith with its creditors prior to saying bankruptcy was the only way.</p><p>No one seems to be arguing that the city has a viable way to pay its debts. And Daniel&nbsp;Howes of the <a href="http://www.detroitnews.com/article/20131113/BIZ/311130016/Good-faith-bargaining-not-easy-define-Detroit-bankruptcy-case?odyssey=tab|topnews|text|FRONTPAGE">Detroit News</a> argues that defining "good faith" negotiations in exceedingly difficult in this case.</p><p>That's because Detroit owes money to nearly 100,000 creditors.</p><p> Wed, 13 Nov 2013 18:03:55 +0000 Mark Brush 15263 at http://michiganradio.org Judge will soon decide whether Detroit will get bankruptcy protection Merging Detroit and Wayne County is the only long-term strategy that makes sense http://michiganradio.org/post/merging-detroit-and-wayne-county-only-long-term-strategy-makes-sense <p></p><p><span style="line-height: 1.5;">Well, it was quite a week for our state’s largest city. Voters elected a white mayor for the first time since 1969.</span></p><p>Had you gone to Lloyds of London 10 years ago and bet that within a decade, America would have a black president and Detroit a white mayor, today you would be very rich indeed.</p><p>But in the city Cadillac founded, attorneys today will offer closing arguments in a trial to determine whether the city will be allowed to file for bankruptcy. While everything in Federal Judge Steven Rhodes’ courtroom is by the book, there is an element of Kabuki-theater unreality about it all.</p><p>Nobody really believes the application will be denied. If it were, creditors would tear what remains of Detroit apart with the efficiency of a pack of wolves with a lamb.</p><p> Fri, 08 Nov 2013 19:44:04 +0000 Jack Lessenberry 15199 at http://michiganradio.org Merging Detroit and Wayne County is the only long-term strategy that makes sense Can Detroit really get bankruptcy protection? Hearing starts today, Snyder to testify Monday http://michiganradio.org/post/can-detroit-really-get-bankruptcy-protection-hearing-starts-today-snyder-testify-monday <p style="margin-top: 9px; margin-bottom: 9px; padding: 0px; border: 0px; color: rgb(68, 78, 92); font-family: Georgia, serif; line-height: normal;">Detroit is NOT in bankruptcy. Not yet, anyway.</p><p style="margin-top: 9px; margin-bottom: 9px; padding: 0px; border: 0px; color: rgb(68, 78, 92); font-family: Georgia, serif; line-height: normal;">That's what the bankruptcy hearing, which started today, is all about.</p><p style="margin-top: 9px; margin-bottom: 9px; padding: 0px; border: 0px; color: rgb(68, 78, 92); font-family: Georgia, serif; line-height: normal;">The federal bankruptcy judge will decide whether the city is allowed to protect itself from close to 100,000 creditors under Chapter 9 bankruptcy laws.</p><p style="margin-top: 9px; margin-bottom: 9px; padding: 0px; border: 0px; color: rgb(68, 78, 92); font-family: Georgia, serif; line-height: normal;">We found out this morning that Michigan Gov. Rick Snyder, the man who ultimately signed off on Detroit's bankruptcy filing, will testify in the Detroit bankruptcy trial on Monday.</p><p style="margin-top: 9px; margin-bottom: 9px; padding: 0px; border: 0px; color: rgb(68, 78, 92); font-family: Georgia, serif; line-height: normal;">Unions had served Snyder with a subpoena, but his live testimony appeared to be an unsettled issue earlier this week.</p><p style="margin-top: 9px; margin-bottom: 9px; padding: 0px; border: 0px; color: rgb(68, 78, 92); font-family: Georgia, serif; line-height: normal;">Gov. Snyder's lawyer argued that the Snyder's recent three-hour deposition should be enough.</p><p style="margin-top: 9px; margin-bottom: 9px; padding: 0px; border: 0px; color: rgb(68, 78, 92); font-family: Georgia, serif; line-height: normal;">But now his counsel says the governor wants to cooperate and will be available Monday afternoon.</p><p style="margin-top: 9px; margin-bottom: 9px; padding: 0px; border: 0px; color: rgb(68, 78, 92); font-family: Georgia, serif; line-height: normal;">Unions and pension funds want to question Snyder about approving Detroit's bankruptcy filing in July as well as other issues related to the case.</p><p style="margin-top: 9px; margin-bottom: 9px; padding: 0px; border: 0px; color: rgb(68, 78, 92); font-family: Georgia, serif; line-height: normal;">They will try to prove to the bankruptcy judge that Gov. Snyder and Detroit's emergency manager Kevyn Orr had bankruptcy in mind all along - that they did not negotiate in good faith with the creditors ahead of time.</p><p style="margin-top: 9px; margin-bottom: 9px; padding: 0px; border: 0px; color: rgb(68, 78, 92); font-family: Georgia, serif; line-height: normal;">Michigan Radio's Sarah Cwiek&nbsp;is live tweeting from today's hearing. Lawyers for the city have already argued in favor of bankruptcy this morning. Now it's time for those opposed to bankruptcy to argue. Here's how Cwiek sums up what their arguments will be:</p><p style="margin-top: 9px; margin-bottom: 9px; padding: 0px; border: 0px; color: rgb(68, 78, 92); font-family: Georgia, serif; line-height: normal;">&nbsp;</p><blockquote class="twitter-tweet" data-partner="tweetdeck"><p>They will all tell us why everything city lawyers just said is BS.</p>— Sarah Cwiek (@sarahcwiek) <a href="https://twitter.com/sarahcwiek/statuses/393039287370780672">October 23, 2013</a></blockquote><script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script><p></p><p style="margin-top: 9px; margin-bottom: 9px; padding: 0px; border: 0px; color: rgb(68, 78, 92); font-family: Georgia, serif; line-height: normal;">&nbsp;</p><blockquote class="twitter-tweet" data-partner="tweetdeck"><p>Essentially: city was always headed for Ch 9. "Negotiations" were a sham.</p>— Sarah Cwiek (@sarahcwiek) <a href="https://twitter.com/sarahcwiek/statuses/393039636110385153">October 23, 2013</a></blockquote><script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script><p> Wed, 23 Oct 2013 15:53:37 +0000 Mark Brush 14961 at http://michiganradio.org Can Detroit really get bankruptcy protection? Hearing starts today, Snyder to testify Monday Detroit's EM hints at how he might use DIA art to help city http://michiganradio.org/post/detroits-em-hints-how-he-might-use-dia-art-help-city <p><span style="line-height: 1.5;">Detroit Emergency Manager </span>Kevyn<span style="line-height: 1.5;"> Orr has sent out the strongest hint yet that prized pieces in the </span>DIA<span style="line-height: 1.5;"> collection are on the table as a way to put money into the city coffers.</span></p><p>Without offering many details, Orr told the Detroit Economic Club today that there are ways for the DIA to make money from its artwork that might not involve outright sales, but perhaps would involve long-term leases.</p><p>Orr was clear -- he said he must consider ways to use the museum&#39;s treasures to help the bankrupt city.</p><p><span style="line-height: 1.5;">And, earlier this week, another one of the city&#39;s &quot;jewels&quot; was back in the spotlight.</span></p><p><span style="line-height: 1.5;">The State and Mayor Dave Bing announced an agreement under which the State </span>DNR<span style="line-height: 1.5;"> would run Belle Isle as Michigan&#39;s </span>102nd<span style="line-height: 1.5;"> State Park.</span></p><p>Detroit News business columnist Daniel Howes joined us to talk about all this.</p><p><em>Listen to the interview above.</em></p><p> Thu, 03 Oct 2013 21:47:51 +0000 Stateside Staff 14713 at http://michiganradio.org Detroit's EM hints at how he might use DIA art to help city Plans move ahead to fix Detroit streetlights http://michiganradio.org/post/plans-move-ahead-fix-detroit-streetlights <p style="padding: 0px; border: 0px currentColor; color: rgb(68, 78, 92); line-height: normal; font-family: Georgia, serif; font-size: 14px; margin-top: 9px; margin-bottom: 9px;">DETROIT (AP) — Crews will begin a block-by-block review of streetlights in two Detroit neighborhoods this week as part of a three-year plan to overhaul the city's decrepit lighting system.</p><p style="padding: 0px; border: 0px currentColor; color: rgb(68, 78, 92); line-height: normal; font-family: Georgia, serif; font-size: 14px; margin-top: 9px; margin-bottom: 9px;">Fewer than half of Detroit's 88,000 streetlights are believed to be working, and Public Lighting Authority workers will inspect each light in areas on the city's east and west sides to map out which aren't working and to determine the cause of each malfunction.</p><p style="padding: 0px; border: 0px currentColor; color: rgb(68, 78, 92); line-height: normal; font-family: Georgia, serif; font-size: 14px; margin-top: 9px; margin-bottom: 9px;">"We will use the information we gather to design a specific plan to relight both of these areas as a prelude to moving out into the rest of the city to completely restore street lighting," the authority's Executive Director Odis Jones said in a statement.</p><p style="padding: 0px; border: 0px currentColor; color: rgb(68, 78, 92); line-height: normal; font-family: Georgia, serif; font-size: 14px; margin-top: 9px; margin-bottom: 9px;">Workers will be wearing yellow vests with the Public Lighting Authority's logo and will be driving vehicles with PLA signs on the side.</p><p style="padding: 0px; border: 0px currentColor; color: rgb(68, 78, 92); line-height: normal; font-family: Georgia, serif; font-size: 14px; margin-top: 9px; margin-bottom: 9px;">After approval from City Council, the Public Lighting Authority was set up earlier this year to design and implement the plan to improve Detroit's public lighting system. Gov. Rick Snyder signed legislation last year to allow lighting authorities in some cities.</p><p> Mon, 16 Sep 2013 14:52:46 +0000 The Associated Press 14434 at http://michiganradio.org Plans move ahead to fix Detroit streetlights Detroit Mayor Bing feeling sidelined, has advice for next mayor http://michiganradio.org/post/detroit-mayor-bing-feeling-sidelined-has-advice-next-mayor <p>Detroit Mayor Dave Bing will finish his term at the end of the year, and <a href="http://www.freep.com/article/20130913/NEWS01/309130021/kevyn-orr-mayor-dave-bing-emergency-manager-role-appointees-pushed-aside">according to Matt Helms of the Detroit Free Press</a>, Bing is going out feeling frustrated.</p> Fri, 13 Sep 2013 15:20:07 +0000 Mark Brush 14409 at http://michiganradio.org Detroit Mayor Bing feeling sidelined, has advice for next mayor Orr says Detroit's parking system losing money, considering sale http://michiganradio.org/post/orr-says-detroits-parking-system-losing-money-considering-sale <p><a href="http://www.detroitnews.com/article/20130828/METRO01/308280050/Orr-puts-Detroit-garages-meters-up-sale?odyssey=tab|topnews|text|FRONTPAGE">The Detroit News</a> reports that Kevyn Orr is considering a sale of the city's parking system.</p><p>Michigan Radio's Sarah Cwiek is looking into this story further and will have more later.</p><p>Parking systems can be a source of revenue for a city, but according to the News, Orr says the system is losing money:</p> Wed, 28 Aug 2013 16:49:52 +0000 Mark Brush 14174 at http://michiganradio.org Orr says Detroit's parking system losing money, considering sale First public debt is issued in Michigan since Detroit bankruptcy http://michiganradio.org/post/first-public-debt-issued-michigan-detroit-bankruptcy <p>People are willing to loan money to Michigan public entities again: t<span style="line-height: 1.5;">hat's according to Brian O'Connor, the finance editor at the </span><em><a href="http://www.detroitnews.com/article/20130815/METRO06/308150042#ixzz2c4Ulyj00" style="line-height: 1.5;">Detroit News</a></em><span style="line-height: 1.5;">.</span></p><p>O'Connor writes that when Ypsilanti Community Schools and the state sold bonds yesterday, it marked the "first time since Detroit filed for bankruptcy" that public debt was issued in Michigan.&nbsp;</p> Thu, 15 Aug 2013 20:42:27 +0000 Mark Brush 14015 at http://michiganradio.org First public debt is issued in Michigan since Detroit bankruptcy Consultant fees charged to the city of Detroit scrutinized http://michiganradio.org/post/consultant-fees-charged-city-detroit-scrutinized <p>Bills being charged to the city of Detroit in its restructuring are under the spotlight.</p><p>Last month, legal fees charged by Kevyn Orr's former law firm, Jones Day, were highlighted <a href="http://www.americanlawyer.com/PubArticleALD.jsp?id=1202609710961&amp;Jones_Day_Bills_Detroit_14_Million_in_First_Six_Weeks&amp;slreturn=20130713114957">in a piece by AM Law Daily's Sara Randazzo</a>.</p> Tue, 13 Aug 2013 16:50:54 +0000 Mark Brush 13958 at http://michiganradio.org Consultant fees charged to the city of Detroit scrutinized Economist says banks should be at the back of the line in Detroit bankruptcy http://michiganradio.org/post/economist-says-banks-should-be-back-line-detroit-bankruptcy <p>Nobel Prize winning economist Joseph Stiglitz wrote about Detroit's bankruptcy filing in yesterday's New York Times.</p><p><span style="line-height: 1.5;">In his opinion piece, <a href="http://opinionator.blogs.nytimes.com/2013/08/11/the-wrong-lesson-from-detroits-bankruptcy/">The Wrong Lessons from Detroit's Bankruptcy</a>,&nbsp;Stiglitz&nbsp;writes that it is "extremely important" to understand what happened in Detroit.</span></p><blockquote><span style="color: rgb(51, 51, 51); font-family: georgia, 'times new roman', times, serif; font-size: 14px; line-height: 21px;">Detroit’s travails arise in part from a distinctive aspect of America’s divided economy and society ... our country is becoming vastly&nbsp;<a href="http://graphics8.nytimes.com/packages/pdf/national/RussellSageIncomeSegregationreport.pdf" style="color: rgb(102, 102, 153); text-decoration: underline; display: inline !important;" target="_blank">more economically segregated</a>, which can be even more pernicious than being racially segregated. Detroit is the example par excellence of the seclusion of affluent (and mostly white) elites in suburban enclaves. There is a rationale for battening down the hatches: the rich thus ensure that they don’t have to pay any share of the local public goods and services of their less well-off neighbors, and that their children don’t have to mix with those of lower socioeconomic status.</span></blockquote><p>Stiglietz&nbsp;says the question in front of Detroit now is how the city gets through the bankruptcy process, and that "e<span style="color: rgb(51, 51, 51); font-family: georgia, 'times new roman', times, serif; line-height: 1.5;">nsuring that bankruptcy proceeds in a way that is good for Detroit will require vigilance."</span></p><p> Mon, 12 Aug 2013 16:42:21 +0000 Mark Brush 13937 at http://michiganradio.org Economist says banks should be at the back of the line in Detroit bankruptcy 7 questions and answers about Detroit's bankruptcy http://michiganradio.org/post/7-questions-and-answers-about-detroits-bankruptcy <p><span style="line-height: 1.5;">Detroit filed for Chapter 9 federal bankruptcy protection&nbsp;yesterday.</span></p><p>The federal courts have never seen a municipal bankruptcy filing of this size, so there are a lot of questions out there.</p><p>Earlier today, <a href="https://www.facebook.com/michiganradio">we asked our Facebook followers</a>, "What questions do you have about Detroit's bankruptcy?"&nbsp;</p><p>We've been working hard to answer as many of them as possible. Here's what we have so far, but keep checking back as we gather more information for you.</p> Fri, 19 Jul 2013 23:06:15 +0000 Mark Brush & Michigan Radio Newsroom 13612 at http://michiganradio.org 7 questions and answers about Detroit's bankruptcy City of Detroit files for federal bankruptcy protection http://michiganradio.org/post/city-detroit-files-federal-bankruptcy-protection <p><em><a href="http://www.scribd.com/doc/154574836/Detroit-Chapter-9-Bankruptcy-Filing-WXYZ">The city of Detroit has filed for Chapter 9 federal bankruptcy protection </a>making it the largest city in U.S. history to declare bankruptcy. We are updating this post as we learn more information. To see how the story unfolded scroll down and read up.</em></p><p><strong style="line-height: 1.5;">Final update on this post - 3:08 p.m.</strong></p><p><span style="font-family: Arial, sans-serif; font-size: 13px; line-height: normal;">And here we go - the beginning of a long line of likely court battles after the city of Detroit attempts to move through federal bankruptcy protection.</span></p><p><span style="font-family: Arial, sans-serif; font-size: 13px; line-height: normal;">Today, Ingham County judge Rosemary Aquilina&nbsp;issued orders saying Detroit's bankruptcy filing violates the state constitution. More from the <a href="http://www.freep.com/article/20130719/NEWS06/307190075/Michigan-AG-challenges-judge-s-ruling-Detroit-bankruptcy-unconstitutional">Detroit Free Press</a>:</span></p><blockquote><p><span style="color: rgb(44, 44, 44); font-family: Helvetica, Arial, sans-serif; font-size: 16px; line-height: 24px;">In a spate of orders today arising from three separate lawsuits, Aquilina said Gov. Rick Snyder and Detroit emergency manager Kevyn Orr must take no further actions that threaten to diminish the pension benefits of City of Detroit retirees.</span></p></blockquote><p><span style="font-family: arial, sans-serif; font-size: 13px; line-height: normal;">State Attorney General Bill Schuette&nbsp;moved quickly and said he will appeal the judge's decision.</span>&nbsp;He plans to&nbsp;<span style="font-family: arial, sans-serif; font-size: 13px; line-height: normal;">ask the Michigan Court of Appeals to grant a stay of that order.</span></p><p><strong style="line-height: 1.5;">11:22 a.m.</strong></p><p>Detroit Emergency Manager&nbsp;Kevyn Orr and Gov. Snyder held a press conference this morning to discuss the Chapter 9 bankruptcy filing for Detroit with the press. They both stressed that for the people of Detroit, "<span style="line-height: 1.5;">it's business as usual."</span></p><p><span style="line-height: 1.5;">"Going forward...we will pay our bills," Orr said. He said priority will be given to those expenses relating to health,&nbsp;</span><span style="line-height: 1.5;">safety, and welfare.</span></p><p>Orr said that "b<span style="line-height: 1.5;">ankruptcy is a tool in our toolbox" and the process gives him a chance to implement <a href="http://www.detroitmi.gov/Portals/0/docs/EM/Reports/City%20of%20Detroit%20Executive%20Summary%2061413.pdf">a plan that he laid out on June 14</a>.&nbsp;</span></p><p><span style="line-height: 1.5;">"It gives us breathing room," Orr said. "We were getting sued on a weekly basis." Two Detroit pension boards filed suit to try to stop federal bankruptcy proceedings. The action prompted Orr and Snyder to push up the timing of the filing.</span></p><p>Orr told reporters that he asked for a "consensual process" with creditors and interested parties, "but that didn't happen."</p><p>Orr was asked "what shocked him most?" when he first opened Detroit's books. Orr replied it was the normalcy of the practice of continual borrowing&nbsp;in the face of mounting debt in Detroit that struck him most.</p><p>"What shocked me wasn't the numbers," he said. "What shocked me was the tolerance for this behavior for decades...<span style="line-height: 1.5;">I wish there had been a lot more outrage over the past ten to twenty years."</span></p><p>Orr referred to his short tenure as emergency manager to deal with Detroit's debt problem.&nbsp;<span style="line-height: 1.5;">"We're dealing with 60 years of deferred maintenance in 18 months. I can't afford to spend time running in place to fix the problems I'm here to address," he said.</span></p><p><span style="line-height: 1.5;">Orr mentioned a list of mounting problems in Detroit as reason to take drastic action&nbsp;</span><span style="line-height: 1.5;">- children walking home in the dark after school because street lights don't work, "40 year-old trees" growing out of dilapidated buildings, and slow police response times.</span></p><p><span style="line-height: 1.5;">"I recognize [Chapter 9 bankruptcy] is a lever, but we are trying hard to be fair."</span></p><p>Orr said they are looking for an entity to represent retirees in the bankruptcy proceedings, something he said some unions were unwilling to do.</p><p><span style="line-height: 1.5;">Gov. Snyder became animated when talking about the Chapter 9 filing.</span></p><p><span style="line-height: 1.5;">"Now is our opportunity to stop 60 years of decline. This is fundamental... how long has this ...</span><span style="line-height: 1.5;">we are doing something. This is forum. This is the place to do it in. This is the place to address the debt question...w</span><span style="line-height: 1.5;">e will come out with a stronger, better Detroit." Gov. Snyder said. Snyder said not only do the citizens of Detroit deserve an improved city, but the people of Michigan deserve it as well.</span></p><p><strong style="line-height: 1.5;">9:30 a.m.</strong></p><p>At 10:00 a.m., Gov. Snyder and Detroit Emergency Manager Kevyn Orr will hold a press conference on the Detroit bankruptcy filing.</p><p> Fri, 19 Jul 2013 19:08:15 +0000 Mark Brush 13606 at http://michiganradio.org City of Detroit files for federal bankruptcy protection Detroit pension funds sue city's emergency manager, governor in attempt to block bankruptcy http://michiganradio.org/post/detroit-pension-funds-sue-citys-emergency-manager-governor-attempt-block-bankruptcy <p><span style="color: rgb(34, 34, 34); font-family: arial; font-size: small; line-height: normal;">Two Detroit pension funds have sued the city’s emergency manager,&nbsp;Kevyn Orr, and Governor Rick Snyder in an attempt to block the Motor City from filing for bankruptcy.</span><br style="color: rgb(34, 34, 34); font-family: arial; font-size: small; line-height: normal;"><br><span style="color: rgb(34, 34, 34); font-family: arial; font-size: small; line-height: normal;">The General Retirement System and the Police and Fire Retirement System of the City of Detroit filed the lawsuit yesterday, <a href="http://www.bloomberg.com/news/2013-07-18/detroit-pension-funds-sue-to-block-city-bankruptcy-filing.html">Bloomberg’s Margaret Cronin Fisk reported</a>. The state’s constitution offers protection of public retirees’ rights, and the petitioners of the lawsuit are claiming that a Detroit bankruptcy would violate those rights.</span><br style="color: rgb(34, 34, 34); font-family: arial; font-size: small; line-height: normal;"><br><span style="color: rgb(34, 34, 34); font-family: arial; font-size: small; line-height: normal;">Orr’s office refused to comment on the lawsuit.</span><br style="color: rgb(34, 34, 34); font-family: arial; font-size: small; line-height: normal;"><br><span style="color: rgb(34, 34, 34); font-family: arial; font-size: small; line-height: normal;">Orr hasn’t commented on which pension funds would be cut, and to what degree, but he has vowed to make “<a href="http://www.freep.com/article/20130717/NEWS01/307170144/Detroit-s-pension-boards-file-suit-against-Kevyn-Orr-governor">significant cuts</a>” to pension payments.</span></p><p> Thu, 18 Jul 2013 15:25:58 +0000 Michigan Radio Newsroom 13596 at http://michiganradio.org Detroit pension funds sue city's emergency manager, governor in attempt to block bankruptcy In this morning's news: Jenkins replaces Pugh, income tax bill, Orr meets with creditors http://michiganradio.org/post/mornings-news-jenkins-replaces-pugh-income-tax-bill-orr-meets-creditors <p><strong>Saunteel</strong> <strong>Jenkins replaces Charles Pugh as Detroit City Council President</strong></p><p>"Saunteel Jenkins is the new President of the Detroit City Council. The Council voted on new leadership after it lost its two former top officials. Jenkins replaces Charles Pugh, who has vanished from the public eye amidst allegations of a questionable relationship with a teenager," Michigan Radio's Sarah Cwiek <a href="http://www.michiganradio.org/post/detroit-city-council-elects-new-leaders">reports.</a></p><p><strong>Proposed legislation would let voters eliminate income tax</strong></p><p>Republican state Representative Bob Genetski is sponsoring legislation that would let voters decide whether to get rid of the state's income tax.<br><br>"He supports raising the state’s sale’s tax to make up for the lost revenue. Former director of the state House Fiscal Agency Mitch Bean says the plan would leave an $8.5 billion dollar hole in next year’s state budget," Jake Neher reports.</p><p><strong>Orr cancels bus tour with creditors </strong></p><p>Detroit emergency manager Kevyn Orr has canceled a planned bus tour meant to convince Wall Street creditors that the city's condition is dire and they should accept big losses on its debt.<br><br>"Orr says the tour could be rescheduled. But it increasingly seems that his negotiations with creditors are hitting a wall. City Council member Ken Cockrel echoes what many think--that resistance from creditors is speeding up Detroit’s timeline for a possible bankruptcy filing," Michigan Radio's Sarah Cwiek reports.</p><p> Wed, 10 Jul 2013 10:53:50 +0000 Michigan Radio Newsroom 13454 at http://michiganradio.org In this morning's news: Jenkins replaces Pugh, income tax bill, Orr meets with creditors Orr's plan to remake Detroit http://michiganradio.org/post/orrs-plan-remake-detroit <p>When Kevyn Orr was announced as Detroit's emergency manager, he said he took the job because of the challenge - the "Olympics of restructuring" he called it.</p><p>Today, Orr unveiled his plan for that restructuring at a two hour meeting with people representing banks, insurers, pension funds, unions, and other companies holding Detroit's debt.</p><p>You can read his 128 page <a href="http://mediad.publicbroadcasting.net/p/michigan/files/201306/City_of_Detroit_Proposal_for_Creditors.pdf">"Proposal for Creditors" here</a>.</p> Fri, 14 Jun 2013 19:19:37 +0000 Mark Brush 13069 at http://michiganradio.org Orr's plan to remake Detroit Orr's restructuring plan released, historic meeting with Detroit's creditors is underway http://michiganradio.org/post/orrs-restructuring-plan-released-historic-meeting-detroits-creditors-underway <p><strong>Update 12:45</strong></p><p>The meeting has ended. We'll have updates later today on Orr's plan and reaction to it from other stakeholders.</p><p>The Detroit Free Press' Matt Helms tweeted a shot of Orr talking to the media after the meeting:</p><p></p><blockquote class="twitter-tweet" data-partner="tweetdeck"><p><a href="https://twitter.com/search?q=%23DetroitEM&amp;src=hash">#DetroitEM</a> Kevyn Orr talks to media after historic discussions with creditors. <a href="http://t.co/sJAWVlF1bf">pic.twitter.com/sJAWVlF1bf</a></p> Fri, 14 Jun 2013 16:45:44 +0000 Sarah Cwiek & Mark Brush 13057 at http://michiganradio.org Orr's restructuring plan released, historic meeting with Detroit's creditors is underway Detroit's emergency manager launches key talks with creditors http://michiganradio.org/post/detroits-emergency-manager-launches-key-talks-creditors <p>Detroit’s emergency manager Kevyn Orr sits down with the city’s major creditors Friday.</p><p>The meeting sets up negotiations that could help Detroit avoid filing for bankruptcy—or lay the groundwork for it.</p><p>Orr will gather all the city’s big creditors—unions, retirees, and banks—to pitch his plan.</p><p>They’ll all be asked to take some major losses to help Detroit shed some of its crippling debt load, estimated at a least $15 billion. Fri, 14 Jun 2013 04:06:01 +0000 Sarah Cwiek 13053 at http://michiganradio.org Detroit's emergency manager launches key talks with creditors Detroit's Van Gogh better off in LA? Freep writer says that's crazy http://michiganradio.org/post/detroits-van-gogh-better-la-freep-writer-says-thats-crazy <p>In a <a href="http://www.bloomberg.com/news/2013-06-06/detroit-s-van-gogh-would-be-better-off-in-l-a-.html">recent piece in Bloomberg</a>, Virginia Postrel (a political and cultural writer) argues that the "cause of art would be better served" if the DIA's major works were in other, 'more deserving' cities.</p><p>Her argument:</p> Fri, 07 Jun 2013 19:09:54 +0000 Mark Brush 12949 at http://michiganradio.org Detroit's Van Gogh better off in LA? Freep writer says that's crazy Other cultural institutions on notice after DIA assets counted http://michiganradio.org/post/other-cultural-institutions-notice-after-dia-assets-counted <p><a href="http://www.detroitnews.com/article/20130531/METRO/305310317/1409/rss36">The Detroit News' Christine Ferretti</a> writes this morning that other Detroit cultural institutions are on high alert after the news came that assets at the <strong>Detroit Institute of Arts</strong> are being counted as potential assets of the city that can be sold to pay off debts.</p> Fri, 31 May 2013 15:36:47 +0000 Mark Brush 12833 at http://michiganradio.org Other cultural institutions on notice after DIA assets counted