Michigan House approves Detroit bankruptcy bills
Fri, 23 May 2014 12:37:00 GMT —
The Michigan House has approved Detroit bankruptcy legislation that commits $195 million in state money to prevent deeper cuts in retiree pensions and the sale of city-owned art.
The House voted 74-36 Thursday to spend money to match contributions from foundations and the Detroit Institute of Arts. Eleven bankruptcy-related bills cleared the Republican-led chamber and go to the Senate.
One bill puts Detroit's finances under the oversight of a state-led commission for at least 13 years. The board could go dormant sooner if the city has balanced budgets.
Republican Representative Al Pscholka of Stevensville says it's better to settle the bankruptcy rather than potentially leave Michigan liable for billions in pension debt. But Democratic Representative David Nathan of Detroit says he fears Michigan's "takeover" of the city could go on forever.