Governor backs plan to give bankrupt Detroit $350M - New York News

Governor backs plan to give bankrupt Detroit $350M

Posted: Updated:

LANSING, Mich. (AP) - Michigan Gov. 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.

Detroit Institute of Arts released this statement in response to the governor's announcement:
 
"Governor Snyder's announcement is continued good news for the City of Detroit, its pensioners and the DIA. Support from the Governor and legislative leadership, the foundation community and our supporters underscores the importance of the DIA in building a strong, healthy city and state. We are working hard to play an active and thoughtful role in this ongoing process that will allow for a significant contribution to this effort and ensure long-term support for the City's pension funds and sustainability for the DIA. While there has been a great deal of speculation as to the DIA's participation in this effort, the DIA remains focused on continuing conversations with the mediation team, state, county and city officials, our board members, staff and supporters to determine how we can be as productive and supportive as possible in this process, with the ultimate goal of a balanced, achievable solution that provides for strong DIA involvement in this emerging plan and ensures the museum's ability to meet its immediate budget commitments and long-term endowment needs."
  • Download the FOX 2 Apps


  • FOX 2 News Five-Day Forecast
  • Local NewsLocal NewsMore>>

  • High-fiving strangers in NYC

    High-fiving strangers in NYC

    Tuesday, September 16 2014 6:01 PM EDT2014-09-16 22:01:29 GMT
    Looking for a taxi cab is a common sight in the city. For some people, an outstretched arm is usually the sign for hailing a cab. A few other folks see it as something else.Meet Meir Kalmanson. He sees a hand in the air as an opportunity to lighten up a person's serious or frantic state. Meir decided to high-five his way down Fifth Avenue. The video of his rebellion of social norms has gone viral.
    Looking for a taxi cab is a common sight in the city. For some people, an outstretched arm is usually the sign for hailing a cab. A few other folks see it as something else.Meet Meir Kalmanson. He sees a hand in the air as an opportunity to lighten up a person's serious or frantic state. Meir decided to high-five his way down Fifth Avenue. The video of his rebellion of social norms has gone viral.
  • Empire State Building Facebook review controversy

    Empire State Building Facebook review controversy

    Tuesday, September 16 2014 5:52 PM EDT2014-09-16 21:52:40 GMT
    When it comes to visiting New York City landmarks, half the fun is reviewing them afterward on social media sites like Facebook. But some folks say the Empire State Building is reporting their reviews as spam.
    When it comes to visiting New York City landmarks, half the fun is reviewing them afterward on social media sites like Facebook. But some folks say the Empire State Building is reporting their reviews as spam.
  • NY grand jury to weigh charges for Tony Stewart

    NY grand jury to weigh charges for Tony Stewart

    Tuesday, September 16 2014 3:43 PM EDT2014-09-16 19:43:05 GMT
    A grand jury will decide whether NASCAR driver Tony Stewart will be charged in the August death of a fellow driver at a sprint car race in upstate New York, a prosecutor said Tuesday. Ontario County District Attorney Michael Tantillo said he made the decision to present the case to a grand jury after reviewing evidence collected by county sheriff's investigators.
    A grand jury will decide whether NASCAR driver Tony Stewart will be charged in the August death of a fellow driver at a sprint car race in upstate New York, a prosecutor said Tuesday. Ontario County District Attorney Michael Tantillo said he made the decision to present the case to a grand jury after reviewing evidence collected by county sheriff's investigators.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | New Terms of Service What's new | Ad Choices