Detroit in Completely Awful Shape: New Report

Emergency manager paints bleak picture

By Newser Editors and Wire Services

Posted May 13, 2013 2:13 PM CDT

(Newser) – Detroit is broke and faces a bleak future given the precarious financial path it's on, according to a new report out by the city's state-appointed emergency manager, bankruptcy attorney Kevyn Orr. The report, released last night, is his first on Detroit's finances since officially taking the job in March. At that point, the city estimated its budget deficit to be about $327 million. Orr reports that Detroit's net cash position was negative $162 million as of April 26 and that the projected budget deficit is expected to reach $386 million in less than two months.

Orr described the city's operations as "dysfunctional and wasteful after years of budgetary restrictions, mismanagement, crippling operational practices and, in some cases, indifference or corruption," and slammed "outdated policies, work practices, procedures, and systems" that "must be improved consistent with best practices of 21st century government." The bottom line: "Continuing along the current path is an ill-advised and unacceptable course of action if the city is to be put on the path to a sustainable future." Click for more details. (Gawker sums up the report with just one line: "Wow, the city of Detroit is so f---ed.")

This March 14, 2013 file photo shows the skyline of the city of Detroit.
This March 14, 2013 file photo shows the skyline of the city of Detroit.   (Paul Sancya)
In this March 14, 2013 file photo, Kevyn Orr, Detroit's state-appointed emergency manager, speaks at a news conference in Detroit as Michigan Gov. Rick Snyder listens.
In this March 14, 2013 file photo, Kevyn Orr, Detroit's state-appointed emergency manager, speaks at a news conference in Detroit as Michigan Gov. Rick Snyder listens.   (Paul Sancya)
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