Newly Hired Detroit EFM Has Some Financial Issues Of His Own

DETROIT (WWJ) - Records show that the new Detroit emergency financial manager, Kevyn Orr, has some unpaid taxes and two liens on his Maryland home.

Orr has apparently not paid $16,000 in unemployment taxes.

A spokesman for Governor Rick Snyder, who recommended Orr for the job, tells the Detroit News that there was an oversight by an accountant hired to file taxes for Orr. The spokesman says Orr has researched the issue and will pay in full as soon as possible.

Some opponents of the EFM say it's interesting that Orr believes he can manage Detroit when he's having trouble handling his own affairs. Orr was part of the legal team that worked on Chrysler's bankruptcy.

On Friday, WWJ Legal Analyst Charlie Langton talked about some of the legal challenges still expected — and their chances.

"First, procedural: Since the governor appointed an EFM behind closed doors, that violates the Open Meetings Act," said Langton. "Chances of success — not very good. It's been tried before, and the statute allowed the governor himself to make that appointment."

Next, is the EFM illegal?

"Should the governor do what the voters said they didn't want? Chances of success — probably not that good," said Langton. "The governor is following the current old EFM law, and the voters voted down the new EM law. Complicated — that's why a judge will probably weigh in at some point."

Detroit is billions of dollars  in debt and has a budget deficit topping $300 million.