08/05/13

Permalink Anger mounting in Detroit as bankruptcy plans begin to emerge

Two weeks after Detroit’s state-appointed emergency manager Kevyn Orr filed the largest municipal bankruptcy in US history, Orr’s former law firm, Jones Day, has announced it will file an official “restructuring plan” by the end of 2013. As details of the plan emerge, Detroit workers have expressed outrage at the proposals.
Even as Orr claims there “is no money” to fund constitutionally-protected pensions of some 31,000 current and retired city workers, plans are moving forward to provide hundreds of millions of public tax dollars to fund a new Red Wings hockey arena and surrounding entertainment district owned by billionaire tycoon Mike Ilitch.
Orr unveiled a plan Friday to increase city employee health care deductibles three-and-a-half times, from $200 to $750. He is also soliciting about two dozen companies for the lowest bids on privatized garbage collection and recycling.

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