Governor Rick Snyder has signed the legislation that authorizes the state’s $195 million contribution to the Detroit bankruptcy settlement.
The governor says the settlement is a good deal for taxpayers because it sets the stage for the city’s comeback.
We have more from The Michigan Public Radio Network’s Rick Pluta.
Governor Snyder called Detroit’s bankruptcy the “darkest chapter” in the city’s history. But he says the taxpayer donation shows the entire state is behind the Detroit recovery effort.
“Detroit, Michigan, means something special,” he says. “It’s not Detroit versus Michigan or Michigan versus Detroit. It’s Detroit, Michigan, and we should hold our heads proud.” (applause)
There are conditions attached to the state contribution– including a commission that will supervise Detroit’s contracts and finances for years into the future. The money, along with hundreds of millions donated by businesses and foundations, will be used to mitigate cuts to pension benefits in the bankruptcy process. But Retirees still have to approve the deal. In exchange, they’d give up their rights to sue for their full benefits.