Snyder Says State Will Help Detroit out of Bankruptcy

By: News 10
By: News 10
State aid likely depends on willingness of pension funds to accept benefit  cuts.

FILE - In this Feb. 7, 2013 file photo, Michigan Gov. Rick Snyder presents his third state budget before the state Legislature in Lansing, Mich. Snyder is taking questions under oath as labor unions and other creditors in Detroit�s bankruptcy try to understand why he signed off on the largest public filing in U.S. history. Three months later, no assets have been divided and no major deals have been struck. In fact, a judge soon will hold a trial to determine if Detroit even is eligible to be in Bankruptcy Court to restructure at least $18 billion in long-term debt. Snyder�s answers during a three-hour deposition Wednesday, Oct. 9, 2013, can be turned into evidence at the trial. (AP Photo/Carlos Osorio)

"I'm confident we can get this through. It will be hard work, but it's really important work because this is to benefit all of Michigan, the settlement in a positive way."

Governor Rick Snyder says the state will help Detroit get out of Chapter 9 bankruptcy. He told wilx.com the city's pension funds could either get $350 million from the tobacco fund paid out over 20 years or a lump sum somewhere in the neighborhood of $200 million dollars. The aid is expected to be contingent on the city's two pension funds accepting benefit cuts. Trustees for the police and fire fund have agreed to smaller cost-of-living increases while trustees for the general retirement fund have agreed to a 4.5% monthly payment cut. The retirees themselves still have to vote on the proposals. If accepted, the state money and an estimated $466 million in private donations would be put into the pension funds. In exchange, emergency manager Kevyn Orr would agree not to sell the city's collection at the Detroit Institute of Arts.


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