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Broke? City increases management costs

As Detroit Emergency Manager Kevyn Orr takes the city through bankruptcy, many question the amount of money he spends on consultants and aides in both his office and the mayor’s. It is estimated that at the end of the bankruptcy — in five months, the city will have spent $62 million dollars on consultants. To date that number is at approximately $20 million.

Orr’s former firm Jones Day is contracted to make $18 million for legal services and core restructuring of the bankruptcy; Conway MacKenzie 19.3 million to evaluate, develop, negotiate and execute the restructuring; Ernst &Young, $8million for cash flow analysis; Miller Buckfire 8 million as financial asset adviser; Plante Moran $4 million for accounting services; Pepper Hamilton $850,00 for conflicts counsel; Miller Canfield $750,00 for collective bargaining services; Manhattan Institute $622,000 for strategic planning and development of the Detroit Police Department. Among others.

The EM has also approved Mayor Mike Duggan’s 60 appointees, which has added an additional $5.5 million to the executive branch’s expenses.

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