LANSING, Mich. – The Michigan Legislature’s $195 million lifeline to help prevent steep cuts in Detroit’s pensions and the sale of city-owned art is being hailed as a major step toward 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.
A delighted Gov. Rick Snyder and allies are hoping Tuesday’s approval of the state money will persuade thousands of retirees and city workers to get behind the unusual pension and art rescue. Those groups are voting on the deal lawmakers have now endorsed.
The pension agreement is seen as the key part of state-appointed emergency manager Kevyn Orr’s restructuring plan. If it is not approved, the money could vanish and lead to deeper pension cuts.