The Detroit skyline rises behind the Monument to Joe Louis, also known as "The Fist," Thursday, July 18, 2013. State-appointed emergency manager Kevyn Orr asked a federal judge permission to place Detroit into Chapter 9 bankruptcy protection. (AP Photo/Paul Sancya)
Michigan would contribute a nearly $195 million lump-sum payment from the state's rainy day fund to bankrupt Detroit to bolster pension funds and prevent the sale of city-owned art under newly introduced legislation.
The 11-bill package introduced Thursday also would create an oversight committee to review Detroit's budgeting and spending for 20 years and move new hires to a 401(k) plan instead of a pension plan once a recently negotiated collective bargaining contract expires.
The seven-member committee would include appointees of the governor, state treasurer, legislative leaders and Detroit mayor.
The legislation also would provide for a separate investment committee to oversee Detroit pension funds. The intent is to pattern Detroit's oversight after the long-term oversight of New York City after its financial crisis in the 1970s.