Detroit bankruptcy clears first big hurdle

file8831282848632The 195 (m) million dollar state contribution to the Detroit bankruptcy settlement cleared its first major hurdle today (Thu.) as the state House approved the payment by a wide margin.

We have more from Michigan Public Radio’s Rick Pluta.

Applause erupted as the final bill in the Detroit package was approved by a lopsided majority.

There were plenty of complaints about parts of the bills – such as years of post-bankruptcy state oversight, and the big withdrawal from the state’s “rainy day” savings.

But state Representative Harvey Santana of Detroit said there’s too much at stake to say “no” to the settlement.

“Do you really want to open the gates of financial Armegeddon and see what’s on the other side? Do you really want to do that? Do you really want to play chicken with this situation?” Santana asked.

That “other side” included the prospect of pensioners forced onto welfare, auctioning off masterpieces owned by the Detroit Institute of Arts, and additional months or years of litigation. The package now moves onto the state Senate.