The first step in resolving a serious financial problem is to stop fueling the fire by spending money you don't have
Poor guy is going to clean up the Detroit "mess"--
Detroit manager to listen, then assess priorities - seattlepi.com:
Orr insists he has no immediate plan of action other than getting a sense of the city's priorities.
"You really want to look into the swimming pool to see if there is water in there before you dive in," said James Spiotto, a municipal bankruptcy expert at the Chicago-based Chapman and Cutler law firm.
But turnaround specialist James McTevia said he finds it hard to believe that Orr enters the job without any idea about what he intends to do. McTevia, who has closely followed the Detroit situation, suggests that one of his first steps should be an immediate freeze on debt spending.
"The first step in resolving a serious financial problem is to stop fueling the fire by spending money you don't have," McTevia said.
Early success could be crucial for Orr to win over citizens who are skeptical about whether an emergency manager really is needed, bankruptcy expert Doug Bernstein said. Such victories can be as simple as getting "street lights on and get police on the street," he said.
"Public safety is paramount," said Bernstein, managing partner of the Banking, Bankruptcy and Creditors' Rights Practice Group for Michigan-based Plunkett Cooney law firm. "This is such a hot area where people are passionate about whether there should or not be an emergency manager. It would likely go a long way to convince those who are against, or otherwise opposed to the concept, that this can lead to something good or rehabilitation for the city."
Beyond public safety, a host of other problems await Orr — including health care costs, pension concessions, privatizing services if necessary and, finally, weighing whether the only real solution is municipal bankruptcy.
Read more: http://www.seattlepi.com/news/us/article/Detroit-manager-to-listen-then-assess-priorities-4380350.php#ixzz2OV2HwhCD
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Briefly Noted for 2020-09-25
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