Six weeks into his work as Detroit's emergency manager, former bankruptcy lawyer Kevyn Orr has found the city's finances in worse shape than expected, with long-term debt at $15 billion, $2 billion worse than figures disclosed before he took the job, Reuters reported yesterday. The city has set aside far less than expected for retiree healthcare benefits, too. A report from Michigan State University in March stated that Detroit has $4.9 billion of unfunded benefit liabilities. But Orr's review has found the shortfall actually is $5.7 billion, 16 percent higher than expected. Orr will address the city's finances today when he delivers a report to the state, and he is expected to report on Detroit's projected budget deficit and pension underfunding.
