A vote on the 195 (m) million dollar package to help Detroit with its bankruptcy could come in the state House as soon as tomorrow (Thu.). As we hear from Michigan Public Radio’s Rick Pluta, a House committee has put the legislation on a fast track.
Timing is becoming tight for the Legislature to approve the state’s part in the so-called “grand bargain” to pull Detroit out of bankruptcy, guard against the sale of assets belonging to the Detroit Institute of Arts, and minimize cuts to pensions.
Representative John Walsh chaired the special House committee on the Detroit bankruptcy. He says city retirees, in particular, have a lot at stake if the Legislature rejects the deal.
“A lot of human pain and suffering, a lot of uncertainty. I think it’s fair to say pensioners would suffer a much more dramatic cut,” said Walsh.
That’s because it could force pensioners to take the same cuts that bankruptcy would force on the city’s other creditors. Backers of the deal say that would force many pensioners onto public assistance.