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Governor Signs the "Grand Bargain" Today

 
Governor Signs the
Posted June 20th, 2014 @ 9:26am by Michigan Radio Network and the WOOD Radio News Team

Governor Rick Snyder today will sign into law so-called "Grand Bargain" legislation in Detroit.

The measure authorizes a $195  million payment as part of the city's bankruptcy settlement, which includes pension reductions for retirees.

The Governor told WOOD Radio News Friday morning that this money is important to resolving the Detroit bankruptcy. 

He is hopeful that the Detroit's retired city workers vote, by July 11, to accept the payment.  "If they don't, they're going to be much worse off financially."

The broke city government is billions of dollars in debt and underfunding the retirees' pension fund had contributed to the financial ruin.

The state government payment to Detroit's city hall comes from the state's Budget Stabilization Fund, also known as the "rainy day fund."

Under the deal, a long-term financial oversight commission to monitor city budgets and contracts is created.   The "rainy day fund" would be re-stocked with money the state is receiving from a 1990's lawsuit against tobacco companies.


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