Michigan Gov. Rick Snyder said on Tuesday that legislative approval of state assistance to help minimize pension cuts in Detroit and preserve public services is a step toward recovery.
The Michigan Senate approved approximately $200 million in state funding in an effort to bring a quick end to Detroit’s bankruptcy proceedings, the New York Times reports.
“People around the world know of our largest city’s proud past as well as the struggles of its difficult but necessary bankruptcy,” Snyder said. “May this proposed settlement now cast Detroit forever as an example of a community and a state pulling together and making tough decisions to create a brighter future.”
Snyder hailed state officials for reaching bipartisan agreement on the measure.
“(On Tuesday) we saw lawmakers from across the state stepping up to approve legislation that helps Detroiters – and all Michiganders,” Snyder said. “This settlement plan will allow Detroit to build a solid fiscal foundation for its continuing comeback. The bipartisan package shows the commitment of our partners in the legislature to assist Detroit pensioners, ultimately save taxpayers millions of dollars and improve the quality of life for the city’s 700,000 residents.”
The city’s 20,000 retirees have to sign off on Detroit’s plan to re-emerge from bankruptcy even though the retirees would see benefits cut under the plan. A federal judge also must approve the plan, the New York Times reports.