Duggan To Take Bankrupt Detroit’s Oath Of Office

DETROIT (AP) — When Mike Duggan is sworn in as Detroit’s mayor shortly after 11 a.m. on New Year’s Day, he’ll begin a four-year term with limited powers in an insolvent city whose finances are controlled by a state-appointed overseer.

He plans to start work immediately, holding initial staff meetings Wednesday at City Hall. But Duggan already has been busy on Detroit’s behalf since voters elected him in November.

The former Detroit Medical Center chief has attended a meeting of new mayors hosted by the White House, put together his own administration and lobbied with emergency manager Kevyn Orr for a greater role in the city’s immediate turnaround.

“He’s been engaged on issues and has been preparing to hit the ground running,” former Detroit Councilwoman Sheila Cockrel said of Duggan.

Read more: http://timesleader.com/news/news/1094513/Duggan-to-take-bankrupt-Detroits-oath-of-office

Ruling Makes Detroit Biggest City To Qualify For Bankruptcy

English: Renaissance Center, GM World Headquar...

English: Renaissance Center, GM World Headquarters, Detroit, Michigan. (Photo credit: Wikipedia)

DETROIT — Detroit is eligible to shed billions in debt in the largest public bankruptcy ever in the United States, a federal judge ruled Tuesday, while also finding that the public pensions could be reduced during reorganization despite a provision in Michigan’s Constitution.

In ruling that Detroit was eligible to reorganize under federal bankruptcy law, Judge Steven W. Rhodes said the city met every test of insolvency, including failing to pay its debts and being unable to provide a minimum level of basic services to its 680,000 residents.

“This once proud and prosperous city can’t pay its debts,” the judge said. “It’s insolvent. It’s eligible for bankruptcy. But it also has an opportunity for a fresh start.”

Appeals were expected to be filed quickly. Bruce Babiarz, a spokesman for Detroit’s fire and police retirement system, which supports 8,500 retirees, said lawyers were reviewing the ruling and expected to file an appeal by the end of the week. But the case will continue to move forward, with the next step being the city filing a “plan of adjustment.” It is unclear, however, what portions of the judge’s ruling may be appealed.

Read more: http://www.nytimes.com/2013/12/04/us/detroit-bankruptcy-ruling.html?hp&_r=0

Detriot Files For Bankruptcy

Map of downtown Detroit with I-375 and BS-375 ...

Map of downtown Detroit with I-375 and BS-375 highlighted (Photo credit: Wikipedia)

DETROIT — Detroit on Thursday became the largest city in U.S. history to file for bankruptcy, as the state-appointed emergency manager filed for Chapter 9 protection.

Kevyn Orr, a bankruptcy expert, was hired by the state in March to lead Detroit out of a fiscal free-fall and made the filing Thursday in federal bankruptcy court.

A number of factors — most notably steep population and tax base falls — have been blamed on Detroit’s tumble toward insolvency.  Detroit lost a quarter-million residents between 2000 and 2010.  A population that in the 1950s reached 1.8 million is struggling to stay above 700,000.  Much of the middle-class and scores of businesses also have fled Detroit, taking their tax dollars with them.

In recent months, the city has relied on state-backed bond money to meet payroll for its approximately 10,000 employees.

Read more:  http://www.pottsmerc.com/article/20130718/NEWS04/130719263/once-mighty-motor-city-files-for-bankruptcy

Detroit’s Davos: Op-Ed Piece From The NY Times

Map of Michigan

Map of Michigan (Photo credit: Wikipedia)

ONCE a year, business and political leaders from metropolitan Detroit travel to an island resort that bans all motorized vehicles and talk about the regional economy.

For me, memories of childhood vacations at that resort, Mackinac Island — the ferry ride, the fudge shops, the horse-drawn carriages — are primarily olfactory.  In the unlikely event I’m ever again hit with the dueling scents of confectioner’s exhaust and horse manure, it would probably trigger some kind of Proustian flashback.

For years, Michigan’s business community seemed bent on flashbacks of its own, to the days when the Big Three automakers towered arrogantly from the safe confines of an insular culture.  But now its buzzwords are “innovation,” “entrepreneurship” and a “21st-century global market.”  This week’s Mackinac Policy Conference has positioned itself as a sort of Midwestern Davos, with a roster of marquee speakers, including Michelle Rhee, Jeb Bush and the hosts of “Morning Joe.”

The topic on everyone’s mind will be the fate of Detroit, which was placed under state control in March by Gov. Rick Snyder.  The governor, a Republican, is attending the conference, and four of the candidates running for mayor in November are scheduled to speak there today — among them, the front-runners: the excellently named former police chief Benny Napoleon, and Mike Duggan, who has a serious shot at becoming the first white mayor of Detroit in 40 years.

Read more:  http://www.nytimes.com/2013/05/30/opinion/detroits-davos.html?_r=0