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The Cost of Restructuring Detroit

Aug 13th, 2013 - State News

DETROIT (AP) — Records show Detroit's tab for restructuring city operations includes a consulting company billing $275 an hour for a 22-year-old financial analyst who graduated from college last year.

The analyst is part of the team from Conway MacKenzie working to turn around city operations. In two weeks in July, records show Conway MacKenzie billed Detroit about $288,000 for work by 11 staffers, including the analyst.

The office of Kevyn Orr, Detroit's state-appointed emergency manager, says the hourly amounts were negotiated by the city as flat rates within job classifications to save money. Orr's spokesman Bill Nowling says Conway MacKenzie gave the city a 25 percent discount.

Nowling says the state is paying half of Conway MacKenzie's bill. The restructuring effort began before Detroit's bankruptcy filing.

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