Emergency Manager Kevyn Orr, taking his show on the road to Lansing on Tuesday, told lawmakers how key their funding was to the success of Detroit's bankruptcy proceedings.
Kathleen Gray of the Detroit Free Press wrote that Orr was literally begging lawmakers to approve a plan to send $194.8 million to the city to help settle its bankruptcy.
“We have what we think is a reasonable plan, but to put it bluntly, we need your money,” he told the newly created House committee on Detroit’s Recovery and Michigan’s Future, according to the Freep. “If we don’t get the state settlement, our creditors likely would not approve the plan.”
Gray writes:
If the state disagrees, the $366 million pledged from the charitable foundations and $100 million from the Detroit Institute of Arts, would also be in jeopardy, Orr said. Such a scenario would result in pensioners taking a cut of 30-40%, instead of the 4.5% projected in the city’s latest plan of adjustment for the bankruptcy, Orr said, and push them near poverty level wages.
