Detroit bankruptcy

Opinion
11:25 am
Fri May 23, 2014

Detroit "bailout" bashers target the DIA's millage

Last week it seemed anything but certain that the package of bills authorizing state money for the Detroit “grand bargain” would pass.

And nobody expected they would pass by margins as high, in one case, as 105 to 5.

Which just shows once again that real life is usually stranger than fiction.

There is lingering bitterness over one bill, however: the one that prevents the Detroit Institute of Arts from asking for a renewal of its millage when it expires.

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Stateside
4:13 pm
Thu May 22, 2014

JPMorgan Chase brings $100 million boost to Detroit

Credit Shawn Wilson / Wikimedia Commons

This week brought a $100 million boost to Detroit from JPMorgan & Chase.

Having a titan of Wall Street come to the Motor City with that big bag of money has meaning on many levels. 

Detroit News business columnist Daniel Howes joined us. 

*Listen to the full interview above. 

Detroit
1:41 pm
Thu May 22, 2014

Jamie Dimon says $100 million investment in Detroit was not done for charity

Credit Shawn Wilson / Wikimedia Commons

For a lot of people, Jamie Dimon will forever be linked to the mortgage crisis that hit Detroit as hard as any city.

But there was no mention of that at yesterday's announcement, of course. Instead, there was a plated lunch - chicken and salad, with cupcakes - an uplifting video, and a standing ovation led by Michigan's governor, Rick Snyder.

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Detroit
11:58 am
Thu May 22, 2014

Koch brothers' group tries to derail Detroit bankruptcy deal

Detroit's skyline.
Lester Graham Michigan Radio

Listen to the broadcast version of this story.

Michigan lawmakers are debating a $200 million aid package for Detroit as the city moves through bankruptcy. Until now, state lawmakers haven’t been willing to help it with anything that could be called a “bailout.”

While Governor Rick Snyder supports the current deal, many of his fellow Republicans appear to be balking, especially after a threat of political retribution from the Koch Brothers political network.

Detroit officials have been doing lots of talking in Lansing for the past week, lobbying hard for the state aid package.

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Stateside
6:12 pm
Wed May 21, 2014

Michigan Legislature starts voting on "grand bargain" money for Detroit

The Michigan House of Representatives.
Credit Lester Graham / Michigan Radio

The first votes by state lawmakers on a $195 million cash infusion for Detroit happened today.

The newly formed House Committee on Detroit's Recovery and Michigan's Future approved an 11-bill package. The measures now go to the full state House.

While Gov. Rick Snyder supports the current deal, many of his fellow Republicans appear to be balking – especially after a threat of political retribution from the Koch brothers' political network.

*Listen to Sarah Cwiek's report above.

Weekly Political Roundup
5:17 pm
Wed May 21, 2014

Support for Detroit a political liability?

Credit Steve Carmody/Michigan Radio

This week on All Things Considered, host Jennifer White talks about the status of state support for the Detroit bankruptcy proceedings and the risk of political fallout for lawmakers who support such measures.We have that conversation with Ken Sikkema, former Senate Majority Leader and senior policy fellow at Public Sector Consultants, and Susan Demas, publisher of Inside Michigan Politics, 

Recently, Americans for Prosperity, a group funded by billionaires David and Charles Koch, announced they would run ads against a grand bargain for Detroit and against any Republican lawmaker who votes to support such a plan.

According to Ken Sikkema, while there may be some political risk involved for Republican lawmakers, it is imperative that the Legislature moves on this issue to get Detroit out of bankruptcy promptly.

Listen to the full interview above.

Politics & Government
8:26 am
Wed May 21, 2014

The week in Michigan politics: Detroit bankruptcy and minimum wage

Credit Lester Graham / Michigan Radio

This Week in Michigan Politics, Jack Lessenberry and Christina Shockley discuss the latest in the Detroit bankruptcy including:

  • An expected vote today in the state legislature on the $195 million bailout for Detroit
  • New York’s Lieutenant Governor, Richard Ravitch said yesterday in his testimony on Detroit’s bankruptcy that the “whole country is watching.”
  • The Koch brothers are buying attack ads targeting lawmakers who plan to help Detroit through bankruptcy
  • JP Morgan Chase is expected to announce it’s investing $100 million in Detroit.

Lessenberry also gave an update on the minimum wage debate in the state legislature.

Week in Michigan politics interview for 5/21/14

Stateside
3:00 pm
Tue May 20, 2014

Should businesses donate to help Detroit through bankruptcy?

Detroit's skyline.
Credit Lester Graham / Michigan Radio

An interview with Tom Walsh.

A state House committee is expected to vote today on Michigan's proposed contribution to the "grand bargain."

That's the name of the agreement that softens the blow to city pensioners, while protecting city-owned treasures at the Detroit Institute of Arts.

The $816 million grand bargain draws money from local and national foundations, the state, and the DIA.

Detroit Free Press business columnist Tom Walsh believes it is time for another face at the grand bargain table: business.

In a recent column, Walsh said, "The business sector must ante up to get Detroit out of bankruptcy fast."

He joined us to explain to us why.

Listen to the full interview above. 

Law
8:18 pm
Mon May 19, 2014

Building unions OK giving to Detroit retiree costs

On Monday, U.S. District Court released a statement from bankruptcy mediators saying that the Michigan Building and Constructions Trades council "will be participating in the so-called `grand bargain' by making material contribution toward health care costs for Detroit's retirees."
Credit Steve Carmody / Michigan Radio

LANSING, Mich. (AP) - Mediators in Detroit's federal bankruptcy case say that building trade unions have agreed to contribute to a fund to cover retirees' benefits.

Some legislative Republicans have made union contributions to the pensions a condition for state aid, designed to protect the Detroit Institute of Arts' collection from sale to cover the costs.

A state House committee is to vote Tuesday spending $195 million to help Detroit emerge from bankruptcy.

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Politics & Government
1:32 pm
Mon May 19, 2014

The 'Grand Bargain' may see progress this week at the state capitol

Governor Snyder hopes the State House will make progress toward approving the ‘Grand Bargain’ this week.

Critics complain it’s not fair for the rest of the state to pay for Detroit’s financial missteps. Supporters say restoring Detroit to financial health is important to all of Michigan.Credit Steve Carmody / Michigan RadioEdit | Remove

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Opinion
10:48 am
Mon May 19, 2014

Detroit’s comeback needs to include those left behind in the city

For the past year, for the first time in decades, people in the suburbs, in Lansing, and across America are thinking about Detroit.

Everybody has had to face that Detroit is broken, hopelessly in debt, largely a shattered ruin, and that city services, the schools and so much else doesn’t work.

For many years, everyone knew things were bad, but nobody did much about it.

The political class running the city denied the extent of the problem and did not welcome outside intervention. The rest of us mostly said, fine.

Now, however, things are very different.

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Politics & Government
7:00 am
Mon May 19, 2014

Will objections slow Detroit's trip through bankruptcy?

Detroit’s bankruptcy process has been speedy so far--but hit a few apparent stumbling blocks last week, as creditors filed a slew of objections to the city’s plan of adjustment.

They included representatives for some Detroit bondholders, who are upset about the proposed “grand bargain” to use more than $800 million to minimize pension cuts, and protect the Detroit Institute of Arts from possible liquidation.

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Politics & Government
7:24 pm
Thu May 15, 2014

Hearings continue for Detroit recovery plan

Credit user: {megan} / Flickr

The newly-formed state House committee on Detroit's recovery and Michigan's future continued its hearings today.

At stake is exactly what the state's role should be in helping Detroit out of bankruptcy, and whether the state will kick in $195 million to the "grand bargain" to shore up pensions and protect the city's art collection. 

Detroit News business columnist Daniel Howes, joined us. 

*Listen to the full interview above. 

Politics & Government
9:11 am
Wed May 14, 2014

Detroit's 'grand bargain', minimum wage, and Conyers make political headlines

Credit Lester Graham / Michigan Radio

This Week in Michigan Politics, Jack Lessenberry and Christina Shockley discuss the grand bargain for the Detroit bankruptcy, the debate over the minimum wage and whether Detroit Congressman John Conyers has a chance to continue his nearly 50 years in Congress.

Week in Michigan Politics interview for 5/14/14

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Stateside
4:23 pm
Tue May 13, 2014

Bills propose that Michigan will contribute $195 million to Detroit

A House committee is debating a package of bills in which the state would contribute millions to Detroit.
Credit JSFauxtaugraphy/Flickr

Detroit emergency manager Kevyn Orr was in Lansing today. He testified before the newly-formed House committee on Detroit's recovery and Michigan's future. 

The committee will begin debate on the package of bills that would have the state contributing close to $195 million to the city. 

With Detroit's bankruptcy heading toward a July trial over Orr's plan to eliminate the city's debt, state lawmakers are fast-tracking the package of bills. They hope to get the bills to the House floor for a vote as early as next week, and eventually onto the governor's desk by early June.

MLive Capitol reporter Jonathan Oosting was at today's session, and he joined us from Lansing. 

*Listen to the full interview above. 

Investigative
5:00 am
Tue May 13, 2014

New poll: Save Detroit art and retirees' pensions

Credit Lester Graham / Michigan Radio

Listen to the entire story.

A new poll shows Michigan voters outside of Detroit approve using state money to support the so-called “Grand Bargain” to bolster City of Detroit retirees’ pensions and protect the Detroit Institute of Arts' collection.

The poll was commissioned by Michigan Radio and its partners in the Detroit Journalism Cooperative.

(See DJC partner Bridge Magazine's coverage of the poll here.)

It found almost half of voters outside the city of Detroit support the state government contributing $350 million to help solve some of the sticky issues of the bankruptcy. Forty-nine percent favor the contribution, 34 percent oppose it.

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Housing
5:50 am
Mon May 12, 2014

Detroit Land Bank to expand auctions to more neighborhoods

Bids on 5500 Kensington start at $1,000. This house goes up on the auction block on Wednesday.
Credit buildingdetroit.org

A new experiment meant to fill some of Detroit's vacant city-owned homes appears to be paying off.

City officials plan to announce an expansion of the online auction today.

The Detroit Land Bank Authority started putting one house up for auction on a website each day last week. Bids started at $1,000, and all five drew high bids between $30,000 and $42,000.

So far, 6,000 people have signed up to bid.

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Stateside
4:26 pm
Thu May 8, 2014

Survey shows that over half of Michigan voters want Michigan to help Detroit's bankruptcy

Over half of Michigan voters support Governor Rick Snyder's pledge to have the state contribute to help settle Detroit's bankruptcy.

A recent survey done by the group Business Leaders for Michigan finds that 66 percent of Michigan voters support Gov. Rick Snyder's pledge to have the state contribute to help settle Detroit's bankruptcy. 

The survey found that 20 percent of voters oppose a state contribution, and more than 13 percent don't know if they are for or against.

There have been several ideas floated as to how much the state would give to what's known as the grand bargain – whether it would be a lump sum or spread out over a number of years, and where the money would come from. 

Today, the State house unveiled legislation that spells out its idea for the best way to help Detroit out of bankruptcy. 

Detroit News capitol reporter Chad Livengood joined us to discuss. 

*Listen to the full interview above.

Politics & Government
8:28 am
Wed May 7, 2014

The week in Michigan politics

Credit Steve Carmody / Michigan Radio

This Week in Michigan Politics, Jack Lessenberry and Christina Shockley discuss local election results, how a Tea Partier is trying to challenge Michigan's lieutenant  governor, and how the state might give Detroit less money for the bankruptcy and use Michigan's rainy day fund.

Week in Michigan Politics interview for 5/7/14

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Opinion
11:08 am
Tue May 6, 2014

A new chance for Lansing to do the right thing for Detroit

By now you’ve almost certainly heard about the so-called "Grand Bargain," which would save both the Detroit Institute of Arts and shore up the city’s pension funds enough to minimize the cuts.

Doing that would require hundreds of millions in funds from three sources:

  • A coalition of private foundations
  • supporters of the DIA itself
  • state government

The first two pots of money, from museum backers and the foundations, have been raised or will be.

That leaves the state’s share, which has usually been put at $350 million. Gov. Rick Snyder is supporting this. He believes, correctly, that it makes sense for the entire state.

But his Republican colleagues who control the Legislature aren’t so sure.

Speaker of the House Jase Bolger says he won’t even consider letting this come up for a vote, unless the city unions are willing to kick in some money as well.

Bolger, who is from Marshall, clearly feels no connection to or love for Detroit, and less for unions.

It isn’t clear if the city’s battered unions even have that kind of cash. What is clear to Republicans, of course, is that every dollar the unions have to give up is one less dollar they can conceivably donate to political campaigns.

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