Legislators of both parties and the governor want to help Detroit.
You read that right -- and yes, it's a type of unity we haven't reported often.
Gov. Rick Snyder speaks Wednesday in Lansing. “This is not about paying debts of the city. This is not a bailout for the city’s debts. This is not a bailout of banks or other creditors," he says. (Photo from live feed)
Here's how Chad Livengood casts it in The Detroit News' coverage of a mid-afternoon news conference by the Republican governor and two party allies -- House Speaker Jase Bolger and Senate Majority Randy Richardville:
Gov. Rick Snyder and Republican legislative leaders announced a plan Wednesday to pour $350 million into Detroit’s pension funds over 20 years in an effort to speed the city’s exit from bankruptcy.
Snyder emphasized the plan is "not a bailout" of a bankrupt city after a decades-long financial decline, but instead a way to ease the potential impact of bankruptcy on city pensioners and protect Detroit’s valuable art collection. . . . Unsecured creditors who are owed about $11.5 billion have clamored for art to be sold to help satisfy claims. . . .
“This is not about paying debts of the city. This is not a bailout for the city’s debts. This is not a bailout of banks or other creditors. This is focused on reducing and mitigating the impact on retirees and is focused on protecting assets.”
Update, 10:45 a.m. Wednesday:
Gov. Rick Snyder and legislative leaders are having a 3:30 p.m. news conference today regarding Detroit pension and the DIA, Free Press reporter Paul Egan tweets.
That signals bipartisan agreement on a proposal to help cover city retiree benefits and supplement foundation donations intended to keep artworks in the museum and out of auction houses.
Federal Judge Gerald Rosen, the chief bankruptcy mediator, welcomes the news in a statement Wednesday morning.
"The mediators wish to express their appreciation for the constructive and positive role the governor has now agreed to play in helping resolve key issues."
Original article, 6:50 a.m.:
The governor reportedly has good news for Detroit retirees and the art museum, insiders tell the Free Press.
Gov. Rick Snyder and legislative leaders reached an agreement Tuesday on the framework for a deal to help protect Detroit pensioners and the Detroit Institute of Arts collection from ongoing bankruptcy proceedings, sources told the Free Press, and he is expected to make an announcement Wednesday.
Talks with individual lawmakers on a funding package that could amount to $350 million over 20 years were expected to continue Wednesday morning. But Snyder hoped to announce a deal in the afternoon, before leaving for a two-day trip to Washington, D.C., sources said. . . . Snyder is expected to hold a Lansing news conference.
"Stay tuned. An announcement is coming," Sara Wurfel, the governor's press secretary, tells the paper.
As part of the pending state deal, the DIA would be spun-off from city control into an independent nonprofit.
Specifics haven't leaked, says the lead article spread across the print edition's front page. It's based on comments by three unnamed sources.
No details of the potential agreement were released and Snyder’s announcement Wednesday may be short on details, a source said. . . .
Snyder, a Republican, earlier proposed a state commitment of about $350 million over 20 years, lawmakers said after briefings on Jan. 15. That would roughly match the $330 million in commitments already made by national and local foundations under a plan brokered by Chief U.S. District Judge Gerald Rosen, who is acting as a mediator in the historic Detroit bankruptcy case.
Legislators and the governor want "to protect the retirees, while putting in place safeguards to make sure Detroit makes better financial decisions moving forward,” the Free Press quotes House Minority Leader Tim Greimel as saying. He's a Democrat from Auburn Hills.
The state money would come from the state’s tobacco settlement fund or some other source not tied to annual tax revenues. That way, the ongoing money could be approved once and would not require an annual appropriation. . . .
As part of the deal, the DIA would be spun-off from city control into an independent nonprofit. . . .
Democrats are generally supportive of the proposal, which is seen as a tougher sell among Republican lawmakers who hold the majority in both chambers of the Legislature.
The article is by Lansing bureau writers Paul Egan, Kathleen Gray and Mark Stryker.
