Detroit's new CFO Jim Bonsall brings tough management style to Motor City

I have a few questions.

Does anyone see anything wrong with the picture that Detroit is presenting? First, Orr brings in his law firm to do work for Detroit, at a very very high cost to City taxpayers. Then, we get Gary Brown, hired by Orr with a salary of $225,000. Then, we get a new police chief, salary $225,000. Then we get a chief of staff [[with questionable credentials), salary $225,000. Now a new CFO, salary $225,000.

Then, Orr is asking a judge to rule that pensions and healthcare benefits for workers and retirees should be up for grabs. It's a total slap in the face for those current employees and retirees to look at these high salaries given to people to turn Detroit around while being asked to "sacrifice" more and more.

When do people really matter? Seems to me that a very select few are profitting from Detroits woes and that the people who should matter are being left out for the wolves.

Sell the damn artwork at the DIA, sell Belle Isle, sell the City Airport! Isn't there anyone out there who is looking out for any of us?

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Originally Posted by cla1945

I have a few questions.

Does anyone see anything wrong with the picture that Detroit is presenting? First, Orr brings in his law firm to do work for Detroit, at a very very high cost to City taxpayers. Then, we get Gary Brown, hired by Orr with a salary of $225,000. Then, we get a new police chief, salary $225,000. Then we get a chief of staff [[with questionable credentials), salary $225,000. Now a new CFO, salary $225,000.

Then, Orr is asking a judge to rule that pensions and healthcare benefits for workers and retirees should be up for grabs. It's a total slap in the face for those current employees and retirees to look at these high salaries given to people to turn Detroit around while being asked to "sacrifice" more and more.

When do people really matter? Seems to me that a very select few are profitting from Detroits woes and that the people who should matter are being left out for the wolves.

Sell the damn artwork at the DIA, sell Belle Isle, sell the City Airport! Isn't there anyone out there who is looking out for any of us?

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Who is us??

The city has been shi**y about collection millions and millions of dollars in taxes. Our departments are either unable or unwilling to make the changes to do it. I'll happily spend an extra $1MM in fees to collect an extra $100MM in unpaid taxes, whether it's individuals or corporations not paying.

I don't understand what you mean by "people"...this is *exactly* what gives us the money necessary to *serve* the people.

WE had the chance to clean up our own house. WE blew it and instead screwed our own retirees. 'When do PEOPLE really matter?' -- a great question. You should have been protesting the way pension trustees sold pensioners down the river. Lighten up on the guy who voluntarily took on a thankless job to help Detroit out. Besides, the decision on this will be made by a bankruptcy judge.

[[And as an aside -- we don't have a problem with pension funding, if you believe the trustees. They say we're what, 93% funded! So great. Then if you trust them instead of Orr, there's only 7% to worry about! Congratulations!)

Going on a short rant here.

Who are the "people"? Is it the 10,000 employees? Or is it the 700,000 citizens? I'm tired of hearing about how people are trying to take from "the people". Everything that's going on here is try to get that money BACK TO the people.

The "people" need competent municipal administration. For a few short months, they may get it. Maybe they will like it and decide to try to get more of it. We can hope.

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Originally Posted by corktownyuppie

Who is us??

The city has been shi**y about collection millions and millions of dollars in taxes. Our departments are either unable or unwilling to make the changes to do it. I'll happily spend an extra $1MM in fees to collect an extra $100MM in unpaid taxes, whether it's individuals or corporations not paying.

I don't understand what you mean by "people"...this is *exactly* what gives us the money necessary to *serve* the people.

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I think this is the question we need to pose. The people of our city are living in dangerous conditions, lacking proper lighting, garbage pick up, reasonable police response times and a dire lack of funding for the fire/EMS services. That is who needs to be worried about here, the people of the city. The only way that will be done is if a strong team of leaders is brought in to clean everything up.

I understand the frustration of seeing these people making such large salaries when finances are so tight. However, we need to consider a number of factors:

1. The former approach to these problems did not work, and will not work in the future. Bringing in competent untainted outsiders is key to effectively solving the city's long-term financial and operational challenges.

2. With perhaps the exception of Gary Brown, the people that have been hired could make many times this salary in private practice or consulting. Kevin Orr and other similarly situated partners at Jones Day make well over $1 million dollars per year. Given that Orr probably set up his life with the expectation of making that much money, he probably needs the $225K to pay his bills. If someone had asked him to do the job for free, he almost certainly would have said no. Also, while he receives some prestige from being the emergency manager, he also has accepted the downside risk if everything gets screwed up even further.

3. For the reason described above, it would not be possible to obtain high quality talent to work on these problems at a much lower cost.

4. These costs are temporary, and in the long-run will not significantly harm the city's finances. In contrast, the problem with pension funding is one that must be fixed or it will weigh on the city's finances for decades.

It so exciting to see that there are so many reasonable people out there.

On the other hand, there are still fools like that AFSCME guy on Fahle. Always follow the money. Do you think AFSCME knows what will happen in bankruptcy? Didn't they know they had it good under EM and CA. No -- they couldn't accept that Snyder was trying to get this done without bankruptcy. Oh well.

But great to see so many reasonable voices who accept the situation and will work to solve it as fairly as possible.

I become wary when there's all sorts of big talk about someone coming in John Wayne style with "tough management" to "clean house" etc., with whatever their job involves-- I think it's premature to anoint this gentleman as any kind of savior-- if he's competent, it will show, soon enough.

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Originally Posted by cman710

I understand the frustration of seeing these people making such large salaries when finances are so tight. However, we need to consider a number of factors:

1. The former approach to these problems did not work, and will not work in the future. Bringing in competent untainted outsiders is key to effectively solving the city's long-term financial and operational challenges.

2. With perhaps the exception of Gary Brown, the people that have been hired could make many times this salary in private practice or consulting. Kevin Orr and other similarly situated partners at Jones Day make well over $1 million dollars per year. Given that Orr probably set up his life with the expectation of making that much money, he probably needs the $225K to pay his bills. If someone had asked him to do the job for free, he almost certainly would have said no. Also, while he receives some prestige from being the emergency manager, he also has accepted the downside risk if everything gets screwed up even further.

3. For the reason described above, it would not be possible to obtain high quality talent to work on these problems at a much lower cost.

4. These costs are temporary, and in the long-run will not significantly harm the city's finances. In contrast, the problem with pension funding is one that must be fixed or it will weigh on the city's finances for decades.

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I think your post was on point. I really like point 1. Our city leadership has had there head in the sand for years. There attitude is lets keep doing the same things and hope for a different result. You ask them about using data to drive decision making or look at other areas that have the same problems to see what they did right and duplicate those things they tell you this is Detroit this is how we do things and we don't want outsiders telling us what to do. This attitude is what makes the political class in Detroit so frustrating. For your point 2 Orr had to be seriously talked into taking the EFM job. He was getting ready to go home to South Florida to open up the Miami office of his former law firm. And as far as Gary Brown is concerned as soon as Orr leaves he's most likely out of a job probably for good in Detroit so I don't have as much of a problem with his salary as most. For the short time he's been in Detroit Orr showed his wisdom when he over ruled Mr. Bings' choice of a police chief

Orr's firm will earn millions and millions in billable hours. He will get back whatever lost salary and then some. I'm going to wait and see about the competent government. So far its still early so I'm not going to rush to judgement but I know how these private firms operate with government contracts and they are worse than vultures.

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Originally Posted by Cliffy

Orr's firm will earn millions and millions in billable hours. He will get back whatever lost salary and then some. I'm going to wait and see about the competent government. So far its still early so I'm not going to rush to judgement but I know how these private firms operate with government contracts and they are worse than vultures.

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As far as competent government you know you didn't have it before Orr. I happen to think Orr is very good but even if he wasn't, the bar set by previous city government wasn't very high

did you really think they'd hire some people at $20k/yr to run the city?
ok 20k is a joke, what is your 'fair salary' to run the city?

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Originally Posted by compn

did you really think they'd hire some people at $20k/yr to run the city?
ok 20k is a joke, what is your 'fair salary' to run the city?

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This populist attitude has value to it but it's been blown way out of proportion.

- Detroit hires a professional who normally gets paid $1,000,000 per year at the bargain basement price of $300,000. Everyone is up in arms.

- Detroit hires 10,000 employees at $50,000 per year when every other functioning municipality gets 20,000 employees for $25,000 per year. No one says anything.

You need good leadership...good leadership costs good money.
We need better services. That requires us to spend our money wisely.

No offense to Krystal Crittendon, but if she and the law department were representing us in this bankruptcy, we would be getting outmanned and outgunned at every corner.

Orr gets one major settlement with Bank of America and we're already putting 150 more cops out into the neighborhoods 2 weeks later.

What are we waiting for?