Detroit gets US$195M lifeline from state government
Detroit governor Rick Snyder hopes the state money will persuade retirees and city workers to vote for the unusual pension and art rescue plan
LANSING, Mich.—Detroit has been thrown a US$195-million lifeline from the Michigan State legislature.
The aid, which will help prevent cuts in Detroit’s pensions and the sale of city-owned art, is being hailed as a key step in ending the largest public bankruptcy in U.S. history.
The state funds will join a pool of money from 12 foundations and the Detroit Institute of Arts.
Governor Rick Snyder hopes the June 3 approval of state money will persuade retirees and city workers to vote for the unusual pension and art rescue.
The pension agreement bolsters state-appointed emergency manager Kevyn Orr’s restructuring plan. If the plan is not approved, the money could vanish and lead to deep cuts to pensions and services.