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Coverage from across Michigan and the state Capitol with the Michigan Public Radio Network and Interlochen Public Radio.

Detroit EM Warns Consequences Could Be 'Dire' If Deal Fails

Detroit Emergency Manager Kevyn Orr is warning there will be dire consequences if the city’s bankruptcy settlement falls apart. He told a crowd on Mackinac Island that pensioners who live all across the state will suffer the most if the deal fails. 

Orr was addressing a Detroit Regional Chamber conference. He said he’s very concerned that misinformation is being circulated about the so-called “grand bargain” as the state Senate is getting ready to vote on it. He says pensioners are also being misled by opponents of the deal.

“They’re being hoodwinked, bamboozled, misled,” he said. “So it’s our job to correct that.”

He says there’s also a lot at stake if pensioners reject the deal.

“This is very serious business that could result in people being pushed to the poverty rolls, and people, unfortunately, experiencing a much-more reduced quality of life and ability to  survive for some,” he said.

Orr says it is not mathematically possible for pensioners to do better if the bankruptcy falls apart, and the city’s assets are sold off and divided among all the creditors.

But he says many would likely fall into poverty. State Senate hearings are supposed to begin next week, and pensioners already have their ballots to decide whether they will accept the arrangement. 

Rick Pluta is Senior Capitol Correspondent for the Michigan Public Radio Network. He has been covering Michigan’s Capitol, government, and politics since 1987. His journalism background includes stints with UPI, The Elizabeth (NJ) Daily Journal, The (Pontiac, MI) Oakland Press, and WJR. He is also a lifelong public radio listener.