Detroit still needs $350M from state lawmakers
Published 10:01 am Thursday, April 17, 2014
DETROIT — Pressure was building Wednesday for Michigan lawmakers to commit $350 million to Detroit pensions, a day after the city reached tentative agreements with pension funds and a retiree group to reduce payouts.
The city has an $816 million pledge from foundations, philanthropists and Gov. Rick Snyder to shore up pension funds and prevent the sale of city-owned art as part of Detroit’s strategy for exiting the largest public bankruptcy in U.S. history.
But the state’s share still hasn’t been nailed down, and some in the Republican-controlled Legislature aren’t sold yet.
“It’s not going to be easy because it’s so easily demagogued,” said House Speaker Jase Bolger, R-Marshall, who supports the plan. “There will be an important balance between ensuring Detroit’s success on the positive side and ensuring Detroit doesn’t lapse back into trouble on the cautionary side.”