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Tue December 13, 2011
GOP lawmakers nix move for Detroit bailout
Republicans in the state House said “no” today to Detroit lawmakers who tried to add $220 million for the city to a budget bill. Detroit officials say the money is owed the city from an earlier deal with the state.
Detroit could run out of money to pay its bills by April. A state review team is examining the city’s finances in a process that could wind up with Governor Rick Snyder naming an emergency manager to run Detroit. But members of Detroit's legislative delegation say there are better options.
"It’s not a good investment in the state of Michigan to have your premier city go belly up and bankrupt, which will kill Standard & Poors’ rating of the state of Michigan as a state and all of the other cities and municipalities will go down the drain with them,” said State Rep. Fred Durhal (D-Detroit).
Durhal says he’s working on a plan to get a cash infusion to the city if it develops a state-approved proposal to manage its finances.