Detroit officials get pay raises

Jul 9, 2014

Credit State of Michigan / Michigan.gov

Detroit emergency manager Kevyn Orr has given the city’s leaders a pay raise.

Orr signed an order hiking city appointees and elected officials’ pay by 5% on June 30th. It went into effect July 1.

Detroit Mayor Mike Duggan seemed genuinely surprised to hear that news on Tuesday.

Duggan said he knew Orr was going to raise some appointees’ salaries to match raises that union employees got—though he says that’s offset by greater pension contributions, along with 10% wage cuts implemented in 2012.

“So it’s not really a 5% raise,” Duggan said. “I knew he had put out an order keeping the non-representatives equal with the union representatives, and I certainly supported that. I had not heard that elected officials were included.”

Duggan declined comment on whether it was appropriate for city leaders to get a pay hike while the city is in bankruptcy, saying he wanted to verify the order first.

Orr cited powers under the state’s emergency manager law to make the salary changes, which are usually made by a city Elected Officials Compensation Commission.

The raises are apparently covered in the city’s bankruptcy restructuring plan, which has yet to be approved by either creditors or Judge Steven Rhodes.