05/13/2013 12:31 am ET Updated Jul 12, 2013

Detroit's 45-day Report: Orr Calls City 'dysfunctional And Wasteful' After Years Of Mismanagement, Corruption | Detroit Free Press

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Detroit will finish its current budget year with a $162-million cash-flow shortfall and doubts about the financial health of its pension funds, according to a new report by the city’s emergency manager that lays out the financial free fall in stark detail.

The report, mandated by the state after an emergency manager’s first 45 days in office, confirms a city in desperate shape, with costs for retiree benefits eating up a third of its budget and public services suffering as Detroit’s revenues and population shrink each year. That has led to deferment of payments and an accumulated deficit that would exceed $600 million were it not for borrowing practices the city has used to cover shortfalls.

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