Board approves Governor Snyder's nomination of Kevyn Orr as Detroit emergency financial manager
5:26 PM, Mar 14, 2013
2:01 PM, Jul 10, 2013
(WXYZ) - The three member Local Emergency Financial Assistance Load Board unanimously voted to approve the hiring of Kevyn Orr as Detroit's Emergency Financial Manager.
The state body is made up of Treasurer Andy Dillon, Steve Arwood, Director of Michigan Department of Licensing and Regulatory Affairs and John Nixon, the Budget Director.
The loan board asked Orr questions via teleconference and then took a vote.
We've learned Orr's salary will be $275,000. Under Public Act 72, Orr's salary will be paid by the city of Detroit. Under the new law, the state will pay for the salary of the emergency manager.
Therefore, Orr will get paid by the city for three days until the new law kicks in on March 28th.
Activist Robert Davis tells 7 Action News that he is taking legal action in an attempt to keep Orr from starting as EFM on March 25th. Davis alleges the loan board was didn't have an open process and says it violated the Open Meetings Act.
"We have a lot of case law to support that ... to show that the process was unlawful," says Davis.
Davis says on Friday he could have a court hearing seeking a temporary restraining order.
Terry Stanton, spokesman for the Michigan Department of Treasury, responded to Davis' allegations by saying"Treasury staff complied with requirements of the Open Meetings Act as we do whenever we hold a public meeting.
This suit raises an issue where one does not exist."