DAY 2: Eligibility trial under way in Detroit's bankruptcy case federal court

DETROIT (WXYZ) - The second day of the eligibility trial is under way in Detroit's bankruptcy case in federal court downtown. 

Judge Steven Rhodes confirmed with attorneys that Governor Rick Snyder will testify at 1 p.m. on Monday and there will be no time limit. 

The judge had planned to conclude proceedings at 3 p.m. that day, but now says he will go until 5 p.m. or as long as it takes so the Governor does not have to come back another day. 

Also expected to testify are Detroit Emergency Manager Kevyn Orr, appointed by Snyder and Detroit Police Chief James Craig along with consultants working for the city. 

The trial will determine whether Detroit is eligible to be in bankruptcy. 

The issues to be decided are the debt, set at $18 billion, whether the bankruptcy filing was properly authorized by the Governor and Emergency Manager in conflict with the Michigan Constitution that protects public employee pensions against cuts. 

Pension under-funding has been set at $3.5 billion for more than 20,000 Detroit City retirees. 

There are also legal challenges whether Kevyn Orr is legally in the position of Emergency Manager when the Michigan Legislature and Governor passed a new law in December of 2012 that many consider a re-working of the Emergency Manager law repealed by Michigan voters in November of 2012. 

The eligibility trial could last 3 weeks. Testimony continues Thursday morning from Ernst and Young financial analyst Gaurav Malhotra who is on the team looking into Detroit finances. 

He testified that he reports not to Detroit Mayor Dave Bing, but rather Emergency Manager Kevyn Orr with ongoing financial analysis. Three other consultants are also expected to testify today and tomorrow before the Police Chief and Emergency Manager.

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