Michigan Bill Will Send $194.8 Million to Detroit

Posted in: General Bankruptcy

Michigan lawmakers passed a series of bills with bi-partisan support on Tuesday with the goal to help reach a settlement of Detroit’s bankruptcy case.  The bills allocate $194.8 million for Detroit in a one-time influx of money.  The bills will help alleviate cuts to the city’s pensioners and insulate artwork at the Detroit Institute of Arts from sale.  The bills will also indemnify the state from lawsuits relating to the historic bankruptcy filing and provide for a nine-member committee to oversee the city’s finances, budget, and contracts.

Tim Sowton of Business Leaders for Michigan stated “We are dedicated to making Michigan a top 10 state for jobs, and to get there we need our largest city at its best.”

The bills are on their way to Governor Rick Snyder for approval.  He stated, “This is what bipartisanship is all about.  This was about great teamwork.”

Opponents of the bill held strong opinions, such as this one from Senator Coleman Young of Detroit opposing the state oversight of the city’s finances: “This bill is like me at Buffalo Wild Wings. Once you let them in you never leave.”

The state’s contribution would add money to the $366 million already pledged by charitable foundations and the $100 million pledged from the Detroit Institute of Arts.