Governor backs plan to give bankrupt Detroit $350M
Thu, 23 Jan 2014 13:23:11 GMT —
Michigan Governor Rick Snyder is backing a plan to commit $350 million in state funds to shore up Detroit's pension funds and prevent city-owned art from being sold during they city's bankruptcy.
The Republican joined legislative leaders on Wednesday in announcing a plan that would provide as much as $350 million over 20 years.
The money would match the roughly $330 million that charitable foundations have pledged so far to help the debt-ridden city. Detroit's debt is estimated at $18 billion or more, including $3.5 billion in underfunded pension obligations.
Snyder says the money wouldn't be a bailout. He says it would simply help Detroit quickly settle its bankruptcy.
Republican legislative leaders say the plan will be a tough sell in the Legislature, but that it's better than a protracted legal fight.