Detroit Financial Support Legislation Released

Submitted for introduction late Thursday was the highly-anticipated 11-bill package defining the State’s role in the City of Detroit’s bankruptcy proceedings. The newly formed House Committee on Detroit’s Recovery and Michigan’s Future, will meet on the legislation as early as Tuesday according to Committee Chair Representative John Walsh (R-Livonia).

The legislation calls for the State to provide $194.8 million from the Budget Stabilization Fund, which would then be repaid through tobacco settlement dollars.

The package also calls the development of a seven-person commission to oversee the City finances for the next 20 years. The commission will be comprised of members appointed by the Governor, the Senate Majority Leader, the House Speaker, the Mayor, the State Treasurer, and others – however, not by Detroit City Council.

The plan also would require the City to move all new employees to a defined contribution retirement plan rather than the existing defined benefit system and end the City’s ability to opt out of the law prohibiting a government from paying for more than 80 percent of employee health insurance premiums.

posted by PAA Online , Friday, May 9, 2014 10:37 AM
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