Michigan Gov. Rick Snyder recently signed legislation into law that authorizes the use of state funds to help bring an end to Detroit’s bankruptcy proceedings while preserving public services in the city.
Earlier this month, Michigan legislators approved $194.8 million in state funding as part of a “Grand Bargain” to bring a quick end to the bankruptcy proceedings.
“We are taking historic steps that many would have said was impossible not long ago,” Snyder said. “We have come together as a state and as a family to build a bright future where the outlook was once very uncertain.”
The package of bills aims to minimize pension cuts while protecting taxpayers and preserving public services at the same time. The city’s retirees, who will still see their pensions cut under the agreement, signed off on the plan.
Snyder said the agreement signaled that Detroit and Michigan are connected and must work toward mutual success.
“From the harbors of the Upper Peninsula to the shores of West Michigan to the tip of our thumb, all of Michigan is connected to our largest city,” Snyder said. “And, while our work is not yet done, I am proud that all of Michigan has pulled together to keep Detroit’s revitalization going strong.”
Snyder said the settlement resulted from Republican and Democratic state officials working together.