Michigan Legislature OKs $195 million for Detroit
Rep. Thomas Stallworth III, left, D-Detroit, left, assumes a prayerful position while colleague Rep. John Walsh, R-Livonia speaks tothe senate committee on Government Operations on the bills associated with easing Detroit's bankruptcy in Lansing, Mich., Tuesday, June 3, 2014. Michigan's Senate approved on Tuesday spending $195 million to help prevent steeper cuts in Detroit retiree pensions, linking the state with a deal designed to shield valuable city-owned art from being sold and resolve the largest public bankruptcy in U.S. history. The (AP Photo/Detroit News, Dale G. Young) DETROIT FREE PRESS OUT; HUFFINGTON POST OUT. MANDATORY CREDIT
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.