Thursday, 8 May 2014

Bills to propose $195M state payment to Detroit


Pending legislation will ask Michigan taxpayers to 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.


Republican Rep. John Walsh of Livonia says a 10-bill package coming later Thursday also will create an oversight committee to review Detroit's budgeting and spending for 20 years. The seven-member committee will include appointees of the governor, state treasurer, legislative leaders and Detroit mayor.


The legislation also will 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.


Walsh says he'll hold two to four committee hearings on the legislation starting next week.



No comments:

Post a Comment