Anyone who’s been to Detroit in recent years knows it’s a mess. Acres and acres of abandoned houses, a population decline of 25% in the past 10 years, an astronomical crime rate, and the city is literally leaking money to the tune of some $200 million in two months. Back in March, Gov. Rick Snyder appointed bankruptcy attorney Kevyn Orr as the city’s emergency financial manager, and Orr has just released his report on the city’s financial state.
Before we begin weeping about the death of the Motor City, there are bright spots. Fast Company did a piece in April highlighting entrepreneurs who are taking advantage of low-rent and housing prices and the need for creative work to boost Detroit’s economy. Dan Gilbert is a real estate broker working on filling office space downtown. Andy Didorosi has created a bus service that takes patrons from night-spot to night-spot in safe, fun and comfortable buses. Alicia George has opened a coffee house, and is optimistic that several new businesses have opened near-by.
Now for the bad news. The city of Detroit is paying a farrier (that’s a person who shoes horses) $56,000 in pay and benefits. Right now, in 2013. Let’s just say that he’s not really earning his pay in today’s downtown Detroit. The Detroit Water & Sewer Department is telling the cash-strapped city they need more employees – union employees. And the city’s unionized teachers? They want to cash in unused sick days for over $14 million.
An independent report said four out of five employees in the bloated department were redundant and discovered a thicket of union regulations driving up costs. Plumbers complained that, due to union work rules, they had to wait to fix pipes until duly authorized “operators” came along first to shut them off.
