The situation in Detroit is being closely monitored by government workers across the country who are fearful that they too may see their retirement benefits slashed by cash-strapped states and cities.
Emergency manager Kevin Orr said he hoped unions, pension finds and other creditors would work with him on a “consensual” plan to slash Detroit’s debts” so it can growth and thrive.”
“We’re trying to be very thoughtful, measured and humane about what we have to do.” He told reporters. “The reality is there’s not enough money to address the (pension) situation no matter what we do.”
Orr vowed to continue to pay the city’s bills – including pay calques for city workers – and hopes to publish a restructuring plan in early January.
Outgoing Mayor Dave Bing urged residents to “pull together” and get behind the restructuring efforts.
“There’s going to be a lot of pain for a lot of different people.” He told reporters. “But in the long run, the future will be bright.”
Once a bustling beacon of industrial might, the Motor City is now a poster child for urban decay, its landscape littered with abandoned skyscrapers, factories and homes.
The situation in Detroit is being closely monitored by government workers across the country who are fearful that they too may see their retirement benefits slashed by cash-strapped states and cities.
Emergency manager Kevin Orr said he hoped unions, pension finds and other creditors would work with him on a “consensual” plan to slash Detroit’s debts” so it can growth and thrive.”
“We’re trying to be very thoughtful, measured and humane about what we have to do.” He told reporters. “The reality is there’s not enough money to address the (pension) situation no matter what we do.”
Orr vowed to continue to pay the city’s bills – including pay calques for city workers – and hopes to publish a restructuring plan in early January.
Outgoing Mayor Dave Bing urged residents to “pull together” and get behind the restructuring efforts.
“There’s going to be a lot of pain for a lot of different people.” He told reporters. “But in the long run, the future will be bright.”
Once a bustling beacon of industrial might, the Motor City is now a poster child for urban decay, its landscape littered with abandoned skyscrapers, factories and homes.
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