State offers money up front in Detroit bankruptcy
Developments toward a ‘grand bargain’ to speed the end of Detroit’s landmark bankruptcy have been unfolding quickly. Late on Tuesday night, negotiators from the city and two of its retiree pension funds reached tentative deals involving cuts and cost-of-living revisions. Those agreements were two more hurdles cleared toward an $816-million arrangement that could lessen pension cuts, allow reinvestment in city services, and prevent the sale of city-owned art at the Detroit Institute of Arts. However, more agreements need to be hammered out with other creditors.
Detroit News reporter Chad Livengood is covering the story. He reports that Gov. Snyder has pledge $750-million in state funds towards bolstering pensions. The money would come from the tobacco settlement fund.