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.