Detroit bailout debate moves to Senate

moneyThe Detroit bankruptcy settlement faces its next big test in the Michigan Senate after clearing the state House last week by big margins. Hearings are expected to begin next week.

Governor Rick Snyder wants to commit 195 million dollars to the bankruptcy settlement as part of the so-called “grand bargain.” It’s designed to ensure that pensioners don’t suffer larger cuts to their benefits, and that city-owned works of art aren’t auctioned off.

“The sooner we can get this done, the sooner we can move on with the entire comeback of Detroit, so I would encourage the Senate to move promptly, but that’s their prerogative,” said Snyder.

The governor has to convince the Senate the deal and its conditions on the city are a bargain for taxpayers. But he’s being careful not to prod too forcefully. Last summer, Snyder jeopardized his Medicaid expansion proposal when he blasted the state Senate for taking a summer recess without voting on the legislation. He appears determined not to repeat that mistake.