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Detroit emergency manager: We’re flat broke and can’t borrow any more
Hotair ^ | 05/13/2013 | Ed Morrissey

Posted on 05/13/2013 5:01:16 PM PDT by SeekAndFind

Edited on 05/13/2013 5:05:53 PM PDT by Admin Moderator. [history]

Emergency Manager Kevyn Orr says the city of Detroit’s cash-flow crisis makes it “insolvent” and unable to borrow more money to mask over debts being made worse by skipping millions in payments for retiree pensions and health care.

After 45 days on the job, Orr’s initial assessment of Detroit’s perilous finances is laid bare in a 41-page report to be delivered today to state Treasurer Andy Dillon.


(Excerpt) Read more at hotair.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: Michigan
KEYWORDS: bankuptcy; bluezones; detroit

1 posted on 05/13/2013 5:01:16 PM PDT by SeekAndFind
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To: SeekAndFind

Timmmmberrrrr everbody out of the way !


2 posted on 05/13/2013 5:04:05 PM PDT by PieterCasparzen (We have to fix things ourselves)
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To: SeekAndFind

Quite amazing, actually. Dude wrote almost a page a day.


3 posted on 05/13/2013 5:04:52 PM PDT by PieterCasparzen (We have to fix things ourselves)
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To: SeekAndFind

obama actually loves this.’detroit will be the first city taken over by martial law, it will be obama’s testbed for the rest of the country.


4 posted on 05/13/2013 5:06:41 PM PDT by Secret Agent Man (I can neither confirm or deny that; even if I could, I couldn't - it's classified.)
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To: SeekAndFind

Bulldoze every square inch.Turn it into a museum displaying the evils of Marxist unions and politicians.


5 posted on 05/13/2013 5:08:37 PM PDT by Gay State Conservative (Leno Was Right,They *Are* Undocumented Democrats!)
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To: SeekAndFind
"collect their own dues rather than have the state collect them out of the paycheck directly"

I'm shocked. Neither of them has gotten exactly what they want, therefore.
6 posted on 05/13/2013 5:08:59 PM PDT by Telepathic Intruder (The only thing the Left has learned from the failures of socialism is not to call it that)
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To: SeekAndFind

50 years of Democrats in control of the city and this is what you get. They have finally run out of other people’s money. You can’t run a city when the majority of its population are on welfare and expect it to go on forever. And, I was born there.


7 posted on 05/13/2013 5:09:58 PM PDT by kempster
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To: SeekAndFind

What are we going to do when ALL the property tax revenues and local sales taxes go to PAY THE PENSIONS OF RETIRED “PUBLIC” EMPLOYEES??

I’ve read lately about a couple of cities where THEY ADMIT they spend more money on retired LE than they do for the current police force!

It’s coming. It’s just a matter of time. Will retired public employees be another part (along with the SNAP people and SS recipients) who are the main parts of the zombie hoards?


8 posted on 05/13/2013 5:10:16 PM PDT by djf (Rich widows: My Bitcoin address is... 1ETDmR4GDjwmc9rUEQnfB1gAnk6WLmd3n6)
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To: SeekAndFind
20 different health care plans within the cities governmental apparatus / departments...

Now I know their are also a number of pensions, with the police dept being the most solvent, but they are all underfunded badly.

9 posted on 05/13/2013 5:12:42 PM PDT by taildragger (( Tighten the 5 point harness and brace for Impact Freepers, ya know it's coming..... ))
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To: SeekAndFind

Call your unions and your democrat leaders.... they’ll kiss your boo boo and make it feel better.


10 posted on 05/13/2013 5:14:32 PM PDT by Gator113 ( ~just keep livin~ I drink good wine, listen to good music and dream good dreams.)
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To: Springman; cyclotic; netmilsmom; RatsDawg; PGalt; FreedomHammer; queenkathy; madison10; ...
Wait till the gravy train is cut off to much larger cities and then we'll see how bad it can really get. Detroit has already hit rock bottom.

 photo MIPing_zps6ed55a1c.jpg

Michigan legislative action thread
11 posted on 05/13/2013 5:15:12 PM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: SeekAndFind
Exhibit A (Detroit)

Results of rule by socialist democrats = Broke and Busted.

No further questions, your Honor.

12 posted on 05/13/2013 5:16:32 PM PDT by JPG (Stay strong.)
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To: djf
What are we going to do when ALL the property tax revenues and local sales taxes go to PAY THE PENSIONS OF RETIRED “PUBLIC” EMPLOYEES??

As I understand Detwaa's situation, even though Orr is trying to find a way to solvency ( the Pensions ) or re-negoiate them, by State Law the ultimate responsibilty for these reside with the State of Michigan. Which is unfair in a way, for 50 years they have been the drunken sailor, and everyone else will potentially get the hangover.

Hopefully not...

13 posted on 05/13/2013 5:17:54 PM PDT by taildragger (( Tighten the 5 point harness and brace for Impact Freepers, ya know it's coming..... ))
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To: djf
I’ve read lately about a couple of cities where THEY ADMIT they spend more money on retired LE than they do for the current police force!

NYC allows cops to retire on half pay after 22 years of service. So somebody starts at 21, retires at 43, and has maybe another 30-40 years of collecting pension payments and health benefits.

14 posted on 05/13/2013 5:18:56 PM PDT by PapaBear3625 (You don't notice it's a police state until the police come for you.)
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To: SeekAndFind

We’re Democrats and we’re broke broke broke!


15 posted on 05/13/2013 5:19:24 PM PDT by Enterprise ("Those who can make you believe absurdities can make you commit atrocities." Voltaire)
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To: taildragger

That’s why I say we’ve got to fix it even though we didn’t break it.

Fortunately things are moving in the right direction with a lot of quiet growth.


16 posted on 05/13/2013 5:21:01 PM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: SeekAndFind
If all we did was collect taxes and pay our debt, we couldn’t pay it off in 20 years. That’s the situation that we’re in now.

That is the entire country in a couple decades. Its the end result of the giant Ponzi scheme called the Welfare State. The majority of the population are net takers who expect an ever-dwindling number of "rich" to pay for everything. Eventually the "rich" either flee or collapse under the weight of the burden. And then there are no more suckers to borrow from. So you have a population that is used to screaming "gimme gimme gimme" who no longer has anyone to scream to who will listen. So, like locusts, the population abandons the city and moves on to the next feeding ground where they can vote themselves a government check paid for by "the rich."

17 posted on 05/13/2013 5:36:07 PM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: SeekAndFind

Kevyn??

Is that a myn or a womyn?


18 posted on 05/13/2013 5:39:56 PM PDT by Hardraade (http://junipersec.wordpress.com (Vendetta))
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To: djf
What are we going to do when ALL the property tax revenues and local sales taxes go to PAY THE PENSIONS OF RETIRED “PUBLIC” EMPLOYEES??

Outside of retired police and firefighters, Detroit has 18,500 retirees currently collecting benefits from their pension plan. Orr is requesting docs from the pension plans, as we speak, because it had been assumed that the pension plans were the bright spot (ie fully funded). It turns out that, using his back of the napkin calculations, they are over $1 billion underfunded and the city will be forced to cough that up on top of what they have been shorting in payments to their own pension funds. There is no way to save it without a massive federal "gift" or bankruptcy. Unfortunately, with the current administration, I wouldn't rule out them dumping it on the taxpayers as a precedent with IL and CA coming up next...

19 posted on 05/13/2013 5:49:55 PM PDT by RobertClark (My shrink just killed himself - he blamed me in his note!)
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To: SeekAndFind

Detroit is another Democrat garbage pile, it’s been that way for 50 years.


20 posted on 05/13/2013 6:12:47 PM PDT by SandRat (Duty - Honor - Country! What else needs said?)
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To: SeekAndFind

Cut-off all of the staff positions on the City Council.


21 posted on 05/13/2013 6:25:44 PM PDT by Paladin2
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To: Gay State Conservative
I think they should reopen the Packard plant and start making Caribbeans.


22 posted on 05/13/2013 6:27:50 PM PDT by Paladin2
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To: taildragger

The Socialist Workers seem to think that if Detroit goes into bankruptcy, that the public employees’ pensions could be sacrificed:

http://www.wsws.org/en/articles/2013/04/10/detr-a10.html

So does the Detroit News:

http://www.detroitnews.com/article/20130405/METRO/304050363


23 posted on 05/13/2013 7:02:23 PM PDT by scrabblehack
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To: All

Achtung! You just couldn’t make this stuff up fast enough to beat the Fuhrer; he just went there May 2013 and I quote from CNSNEWS.COM: “Obama said in Michigan that if the federal government does not take more money away from people who have earned it, the public schools may not be able to buy school books.” The Fuhrer has spoken! Whenever the problem is cash, Hussein’s solution is the same: tax, spend, tax, print, tax tax tax and capitalism just fades away leaving a pure socialist paradise.


24 posted on 05/13/2013 7:06:50 PM PDT by RHS Jr (Pity the banksters when Jesus comes)
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To: Paladin2

You’re a genius! I’d buy one of each if they made them: 55Chevy, 57T-bird, 54Corvette, MGB and TR6.


25 posted on 05/13/2013 7:16:45 PM PDT by RHS Jr (Pity the banksters when Jesus comes)
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To: RHS Jr
I'll sell you my MGB.

(It's (much) less than perfect given that it was marginal when I bought it 37 years ago and I haven't driven it in 35 years).

26 posted on 05/13/2013 7:22:54 PM PDT by Paladin2
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To: RHS Jr
“Obama said in Michigan that if the federal government does not take more money away from people who have earned it, the public schools may not be able to buy school books.”

***********************************

Here's Detroits school book depository

***********************************

http://www.artificialowl.net/2008/09/abandoned-detroit-public-schools-book.html


27 posted on 05/13/2013 9:16:08 PM PDT by Neidermeyer (I used to be disgusted , now I try to be amused.)
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To: RobertClark
they are over $1 billion underfunded

When the initial numbers came out months ago of being 18 billion in the red, I think the total pension liabilities were way North of that....

28 posted on 05/14/2013 3:06:58 AM PDT by taildragger (( Tighten the 5 point harness and brace for Impact Freepers, ya know it's coming..... ))
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To: Gay State Conservative
Bulldoze every square inch.Turn it into a museum displaying the evils of Marxist unions and politicians.

I agree. It kills me to know how many idiots that keep voting democrat after the years of abuse they did to Detroit.

What part of squalor is so attractive that people just love to keep voting for it?

29 posted on 05/14/2013 8:51:57 AM PDT by dragonblustar
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To: SeekAndFind

“unable to borrow more money to mask over debts”

Jeesh, when you find yourself in a deep hole, you should stop digging!


30 posted on 05/14/2013 10:05:37 AM PDT by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
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To: Opinionated Blowhard

From the article: “If all we did was collect taxes and pay our debt, we couldn’t pay it off in 20 years. That’s the situation that we’re in now.”

To wich you posted: “That is the entire country in a couple decades.”

I agree and would like to point out one more thing. If you confiscated ALL of the money in the entire world, that is all money in every currency that currently exists, you would still not be able to pay off the debt of the US.


31 posted on 05/14/2013 10:10:18 AM PDT by CSM (Keeper of the Dave Ramsey Ping list. FReepmail me if you want your beeber stuned.)
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To: Neidermeyer

Looks like they didn’t appreciate the books taxpayers bought them.


32 posted on 05/15/2013 1:33:45 PM PDT by RHS Jr (Pity the banksters when Jesus comes)
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To: Paladin2

That is the most beautiful automobile built in America, post war.


33 posted on 05/15/2013 1:37:32 PM PDT by Mr. Lucky
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