Snyder Says State Will Help Detroit out of Bankruptcy

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Governor Rick Snyder says the state will help Detroit get out of Chapter 9 bankruptcy. He told 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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