Governor Rick Snyder has signed the legislation that authorizes the state’s $195 million contribution to the Detroit bankruptcy settlement. The governor says the settlement is a good deal for taxpayers because it sets the stage for the city’s comeback.
The 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.
The 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.
Governor Rick Snyder says he thinks there’s progress in negotiations with the Legislature to put 350 million dollars of state money toward Detroit’s bankruptcy settlement. Detroit’s emergency manager just spent two days in Lansing in an effort to build support for the deal.
That money from the state would help fund pensions and ensure the assets of the Detroit Institute of Arts don’t get put up or auction.
The governor says now he’s pushing for lawmakers to vote on a bailout package in May or early June.
“The goal is to get it done before there’s a recess for the summer.”
Snyder says the bargain has to include an end to legal challenges to the bankruptcy. He would also like an oversight panel to help manage the city’s finances post-bankruptcy. He says that should also help reassure reluctant legislators.
Michigan Gov. Rick Snyder
Gov. Rick Snyder will take the stand this afternoon as part of a hearing on Detroit’s bankruptcy filing. Attorneys for city employee unions intend to question the governor about the decision to allow the bankruptcy
Snyder was also questioned earlier this month as part of a deposition. The governor agreed to waive his executive privilege to testify.