Tagged: Detroit financial crisis

Detroit's new emergency manager said he was embarrassed when Detroit News reporters showed him records of four tax liens placed on his house in Maryland.

Orr said he didn't know anything about the liens when shown records of them Friday morning by The Detroit News.

"I don't know what they are," Orr said, as his new boss, Gov. Rick Snyder, sat next to him in The News' offices. "That's surprising to me, to be honest."

Orr promised to take care of the matter right away. 

There was apparently an oversight related to a childcare provider unemployment insurance payment," Wurfel wrote in an e-mail. "Immediately upon learning of the potential issue just today, he took action at once to look into and resolve with the state of Maryland."

Now, Matt Helms of the Detroit Free Press reports the matter has been taken care of: 

A Maryland official confirmed today that two payments have been made on tax liens filed against Kevyn Orr, Detroit’s emergency financial manager after the state went after unpaid unemployment insurance on child care for his two children.

Maryland Department of Labor, Licensing and Regulation spokeswoman Maureen O’Connor told the Free Press today that she could not discuss specifics of the liens filed against Orr, but said two payments were made on outstanding taxes he owed, so the liens “are in the process of being satisfied.” She declined further comment.

Gov. Snyder said things happen...

“I just view it as that’s not something he was aware of,” Snyder said. “Those things can happen where you had a nanny helping you in your house, you took care of part of the issues and your accountant missed something. And you just go get it taken care of and move ahead.”

When we asked our Facebook fans on Saturday whether they thought this news was a big deal or not... most said, "It's a big deal!"

But maybe Debra Burr put it best when she closed out the comment thread:

"Okay. Now what?"

Gov. Rick Snyder and Detroit's new emergency manager Kevyn Orr made the talk show rounds this morning.

Gov. Snyder went toe to toe with Rev. Al Sharpton who challenged him that appointing an emergency manager in Detroit is undemocratic.

Sharpton said the appointment of Orr as emergency manager of Detroit "undermines people's right to vote, because the only one who voted for Kevyn was you."

Watch Snyder's response here:

Snyder said the mayor and city council will still have input in the process.

Orr mentioned the turnarounds of Baltimore and Pittsburgh as models for how the city of Detroit can get back on a solid financial footing.

Orr and Snyder also appeared on WWJ this morning and I'm looking for that audio. If I find it, I'll post a link to it here.

When Governor Snyder announced he was appointing an emergency manager for Detroit, I was in Traverse City, having lunch with a former governor who long ago tried his best to get the state to help Michigan’s largest city stay on its feet.

William Milliken served as governor longer than anyone has or ever will – fourteen years.

He is a firm believer in something Rick Snyder said earlier this week – that it is not Detroit vs. Michigan, but a situation where a healthy Detroit is essential to the entire state.

It’s official: Detroit has an emergency manager.

His name is Kevyn Orr. And it’s fair to say that he charmed even some skeptical observers when he was introduced to Detroit Thursday.

Orr isn’t exactly a household name. He was—until he quit his job Friday—a partner at the Jones Day law firm in Washington, DC. He’s a bankruptcy lawyer and turnaround expert who helped Chrysler through a successful managed bankruptcy.

We talked throughout today's Stateside about what an emergency manager might do when they first come to Detroit.

Daniel Howes, business columnist at the Detroit News, joined us as he does most weeks.

In his column today, he wrote about bankruptcy being Detroit's next step.

That's even after the appointment of an emergency manager.

Howes broke down for us how a municipal bankruptcy for a big city differs from a business or personal bankruptcy and what a bankruptcy would mean for the city of Detroit.

Kevin Orr, Detroit's new emergency manager, said today he hopes he doesn't have to use the 'cudgel' of bankruptcy. He instead hopes to get consent in a financial turnaround.

Listen to the full interview above.

Each week we speak with Ken Sikkema, former Senate Majority Leader and Senior Policy Fellow at Public Sector Consultants, and Susan Demas, political analyst for Michigan Information and Research Service.

Governor Rick Snyder officially announced the appointment of an emergency manager for Detroit today. He named Kevyn Orr, a Washington D.C. lawyer who represented Chrysler in it’s 2009 bankruptcy as his manager of choice. Orr has many ties to Michigan including graduating from the University of Michigan Law School.

" I think the city is going to need some cash in order to meet some obligations and restructuring, whether or not that is going to be an easy sell is a different matter," said Demas.

"If this gentleman [Kevyn Orr] can actually show some results to get this city in the right direction than I think the attitude in Lansing would be different toward more money, and more investment," Sikkema said.

Listen to the full interview above.