Watch CBS News

New Mayor Of Bankrupt Detroit To Earn $159,000 Salary

DETROIT (WWJ/AP) - Detroit's state-appointed emergency financial manager says he has approved a salary of $159,000 for new Mayor Mike Duggan.

Kevyn Orr controls the municipal treasury and is leading Detroit through federal bankruptcy proceedings to help eliminate a chronic operating deficit and slash a $18 billion long-term debt.

In an order issued Wednesday, Orr — filed the city's bankruptcy petition last July — said that Duggan will play a "vital role" in restoring financial stability to the city. Duggan, who won election in November to replace the retiring Bing, was sworn into office on Jan. 1.

The Detroit News reports the order also formally delegates certain powers to Duggan. He and Orr have negotiated a division of responsibility for running the city.

The order says Duggan will oversee day-to-day operations — including blight removal, public lighting, and the fire department —  but excluding police. Orr will handle all finance functions.

Detroit's former mayor, Dave Bing, made headlines when he promised — while campaigning for office in 2008 — to use salary to pay for police and fire in the city.  About two years later he backtracked, accepting a salary of $158,558.

MORE: Mike Duggan Takes Bankrupt Detroit's Oath Of Office

TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.