Detroit bankruptcy

Arts & Culture
7:48 am
Tue January 14, 2014

DIA supporters seek $170 million more to save Detroit's art and pensions

The Detroit Institute of Arts wants to strike a "grand bargain" to save itself.
DIA

This next story is a call to anybody with $170 million to spare.

And a major fondness for art.

By now, you’ve heard about the group of philanthropists who’ve raised $330 million to strike a “grand bargain” with Detroit’s creditors.

Their goal is to raise half a billion dollars to save city-owned art at the Detroit Institute of Arts from being sold off in the city’s bankruptcy.

But that grand bargain may still require a small miracle.

Fair or not, bankruptcy pitting art against pensioners

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Politics & Government
7:34 am
Mon January 13, 2014

In this morning's headlines: Power in Flint City Council, Detroit swap deal, MEAP tests

User: Brother O'Mara flickr

Flint City Council could gain power back today

The Flint city council has been largely powerless in the two years since the appointment of an emergency manager. But that begins to change this evening. Emergency manager Darnell Earley says the City Council will now be asked to get more involved in city decisions.

Detroit swap deal to resume today

"A bankruptcy court hearing on Detroit's renegotiated deal to pay off two banks in an interest rate swaps deal is scheduled to resume today," The Associated Press reports.

Lawmakers to discuss which standardized test students will take this year

"State lawmakers will begin hearings this week to determine which standardized test Michigan students will take starting next spring. State education officials say the Smarter Balanced Assessment is the only good option to replace the Michigan Educational Assessment Program – or MEAP," Jake Neher reports.

Politics & Government
5:00 am
Tue January 7, 2014

Detroit emergency manager "freezes" pension benefits, then backs off -- temporarily

Detroit emergency manager Kevyn Orr moved to “freeze” pension benefits for some city retirees — then suspended that action as the city and pension fund representatives talk in mediation.

Orr quietly issued that order late last month. It affects members of Detroit’s General Retirement System—not police officers or firefighters, who have their own, separate pension fund.

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Politics & Government
6:00 am
Fri December 20, 2013

Duggan, Orr reach power-sharing agreement in Detroit

Detroit mayor-elect Mike Duggan will have broad powers to run the city’s day-to-day business.

Duggan and emergency manager Kevyn Orr have reached a power-sharing agreement that gives Duggan control over most city functions.

While Duggan will have substantial operational powers, he’s also promised not to “interfere” with any of Orr’s financial control.

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Law
2:56 pm
Mon December 16, 2013

Judge rules that his Detroit bankruptcy finding can be directly appealed

John Meiu Detroit Legal News Publishing LLC

The judge in Detroit’s bankruptcy case says creditors can appeal his recent eligibility ruling directly to a higher federal court.

Judge Steven Rhodes ruled earlier this month that Detroit is eligible to proceed with its historic bankruptcy case.

He also ruled that city pensions can be cut in federal bankruptcy court — despite a public pension guarantee in Michigan’s state constitution.

City unions, pension funds and retiree groups immediately said they intended to appeal both decisions.

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Politics & Government
9:30 am
Mon December 16, 2013

Appeal on the docket today in Detroit bankruptcy case

user: jodelli Flickr

DETROIT (AP) — Unions and Detroit pension funds are back in court to try to persuade a judge to allow them to appeal a decision that lets the city fix itself in bankruptcy.

They want Judge Steven Rhodes to put the Dec. 3 decision on a fast track to a federal appeals court in Cincinnati. A hearing is set for today.

Lawyers for emergency manager Kevyn Orr say it's more appropriate to file an appeal when the case is over. Unions, retirees and pension funds say Rhodes was wrong to find Detroit eligible for Chapter 9 bankruptcy protection.

They're especially disappointed that the judge will allow pension cuts. Detroit says pension plans are underfunded by $3.5 billion.

Orr hopes to file an $18 billion reorganization plan by January.

Politics & Government
1:08 pm
Fri December 13, 2013

Obama administration touts Detroit jobs efforts

Two Obama administration officials were in Detroit this week to highlight White House efforts to help Detroit.

Labor Secretary Thomas Perez and Education Secretary Arne Duncan visited Macomb Community College.

That school is one of eight Michigan community colleges sharing a $25 million grant to “create and expand innovative partnerships between community colleges and businesses” to train more workers for in-demand jobs.

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Politics & Government
7:16 am
Thu December 12, 2013

In this morning's headlines: The final bills of the year, DIA involved in bankruptcy talks

User: Brother O'Mara flickr

Anti-abortion coverage bill approved

"The Michigan Legislature has approved a petition initiative that will require people to buy a separate health insurance policy for abortion coverage. The measure cannot be vetoed by Governor Rick Snyder. But it could be challenged via another petition drive," Rick Pluta reports.

What bills could move through on the last day of session

"Big legislation that could win final approval today would expand a state reform school district to failing schools beyond Detroit and ease the potential discontinuation of traditional land line service. Legislators also plan to update campaign laws heading into an election year by doubling donation limits and keeping intact rules for political ads over objections from the secretary of state," the Associated Press reports.

DIA now involved in bankruptcy talks

"The Detroit Institute of Arts has been allowed into talks on how to protect pieces in its collection during Detroit's bankruptcy. Museum officials say they're mobilizing public support to help implement a fundraising strategy that will meet the city's needs and ensure the well-being of the museum," the Associated Press reports.

Politics & Government
6:38 pm
Wed December 11, 2013

In his farewell speech Bing says, 'I will remain involved in Detroit's transformation'

Dave Bing

Detroit Mayor Dave Bing says he’s pleased with how his administration has “moved the needle forward on Detroit’s future.”

Bing talked about his accomplishments and challenges as mayor in a farewell speech to the Detroit Economic Club Wednesday.

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Politics & Government
8:44 pm
Fri December 6, 2013

Bankruptcy judge gives go-ahead for Detroit lighting plan

DETROIT (AP) - A federal judge has cleared the way for Detroit's Public Lighting Authority to immediately sell $60 million in bonds to begin fixing thousands of broken streetlights.

Judge Steven Rhodes issued his order Friday - three days after he allowed Detroit to become the largest U.S. city to enter bankruptcy.

Total financing for the lighting plan is expected to reach $210 million.

Rhodes' ruling also means $12.5 million in annual utility taxes approved by the state Legislature to back the bond sale will not be affected by the bankruptcy.

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Stateside
4:49 pm
Thu December 5, 2013

Detroit is not the only city in Michigan facing enormous budget challenges

The financial woes Detroit is facing aren't isolated.
Steve Carmody Michigan Radio

All eyes are on Detroit this week, following Tuesday’s historic ruling on Detroit’s eligibility for bankruptcy. For those living outside the city, it's easy to separate themselves from Detroit's problems. 

But many experts say Detroit is not alone.

Detroit is not Michigan's only city that faces enormous budget challenges. Unfunded liabilities and retiree debt are adding up all across our state.

Ted Roelofs, a contributing writer to Bridge Magazine, recently wrote a piece that argues that other cities in Michigan will not be immune to rising legacy costs that, in part, did Detroit in.

Roelofs and John Pottow, a bankruptcy expert at the University of Michigan, talk with us about the future of other Michigan cities in the wake of Detroit’s bankruptcy.

Listen to the full interview above.

Stateside
4:47 pm
Thu December 5, 2013

Will the DIA survive Detroit's bankruptcy? A Detroit News columnist shares his thoughts

The Detroit Institute of Arts.
Flickr

What’s going to happen with the Detroit Institute of Arts?

That’s the question on the minds of many Michiganders after the city of Detroit was deemed eligible for Chapter 9 bankruptcy on Tuesday.

Daniel Howes, a business columnist with The Detroit News, talks with us about all things DIA — a recent appraisal of the institute’s collection, Emergency Manager Kevyn Orr’s interest in the museum, and a possible rescue plan cooked up by a federal judge.

Listen to full interview above. 

Arts & Culture
5:26 pm
Wed December 4, 2013

Detroit music legend Derrick May says bankruptcy is just a new angle to an old story

May at the 'Free Your Mind' festival in 2009.
Rene Passet Flickr

There was another plot turn in the long story of Detroit's struggles yesterday.

A federal bankruptcy judge looked at all the evidence and declared, yep, the city of Detroit is indeed insolvent.

It's new, for sure, but for many who have lived and worked in Detroit, it's just more of the same.

Derrick May is one the founding fathers of techno music. Detroit was the birthplace of the genre, and May has achieved a lot of success traveling around the world playing shows. (Listen to his breakout hit here.)

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Opinion
1:24 pm
Wed December 4, 2013

What happens now for bankrupt Detroit

Lessenberry commentary for 12/4/13

When I was growing up in the 1960s, there was a popular genre of fiction: Novels about the world when and after the presumably inevitable nuclear war happened.

One that I remember was set in rural Florida, one of the few places that avoided total destruction. The survivors set up what amounted to a working subsistence and barter economy. 

But for some, the psychological adjustment was impossible. The town banker sat among piles of paper money that he had always revered as sacred, and which suddenly had no value whatsoever. Unable to adjust, he kills himself.

Things are not nearly that bad in Detroit. But yesterday, there were clear signals that sacred cows really are going to be sacrificed. Public pensions were thought to be sacrosanct, protected by the state constitution. Well, they aren’t, according to Federal Bankruptcy Judge Steven Rhodes. Federal law trumps state law. 

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Business
8:43 am
Wed December 4, 2013

Detroit's bankruptcy & the municipal bond market

Downtown Detroit (file photo)
Steve Carmody/Michigan Radio

The judge’s decision to let the city of Detroit pursue Chapter Nine bankruptcy protection could have an effect on the municipal bond market.

Municipal bonds have long been viewed as one of the safest investments out there. But bond holders may be among the biggest losers in Detroit’s bankruptcy.

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Politics & Government
8:38 am
Wed December 4, 2013

Lessenberry talks Detroit bankruptcy

Peter Martorano Flickr

This Week in Michigan Politics, Jack Lessenberry and Christina Shockley discuss Detroit's bankruptcy eligibility.

As many observers expected, Judge Steven Rhodes ruled yesterday that Detroit is bankrupt, and that the city can proceed with its Chapter 9 filing.  Judge Rhodes said the city did not negotiate in good faith with the creditors and it was clear the state planned the inevitable bankruptcy as soon as Kevyn Orr was named emergency manager for Detroit. Judge Rhodes also said public employee pensions can be cut as part of the restructuring. He also ruled Michigan's Emergency Manager law constitutional.

Click here to listen to the full interview

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Politics & Culture
5:03 pm
Tue December 3, 2013

Stateside for Tuesday, December 3rd, 2013

On this historic day, Detroit, Michigan's largest city, is found eligible for Chapter 9 bankruptcy protection. Federal Judge Stephen Rhodes saying, "It is indeed a momentous day. We have here a judicial finding that this once proud and prosperous city is insolvent."

But, just what does all this mean for Detroit? For our state? What happens next?

This hour, we'll get answers to those questions as we're joined by Jack Lessneberry, Michigan Radio's Political Analyst, and Eric Scorsone joins us for a look at the economic consequences of the nation's largest Chapter 9 bankruptcy ever.

Stateside
4:59 pm
Tue December 3, 2013

How does Detroit's bankruptcy fit into the city's past, present, and future?

Streets of Detroit.
user Daviddje Flickr

Let's take time now to put today's ruling by Judge Rhodes into historical context. How does the painful journey into Chapter 9 bankruptcy fit into Detroit's past, present, and most importantly, its future?

We're joined by someone who has covered the news in Michigan for five decades: Michigan Radio's political analyst Jack Lessenberry.

Listen to full interview above.

Stateside
4:58 pm
Tue December 3, 2013

What happened inside the courtroom during today's Detroit bankruptcy trial

U.S. Bankruptcy Judge Steven Rhodes
John Meiu Detroit Legal News Publishing LLC

Michigan Radio’s Sarah Cwiek was in the courtroom today when U.S. Bankruptcy Judge Steven Rhodes ruled that Detroit was eligible for Chapter 9 bankruptcy.

Stephen Henderson, the editorial page editor of the Detroit Free Press, has been covering the bankruptcy trial on the pages of the Freep.

Sarah and Stephen talk with us in the studio today to discuss what happened today, and what it means for Detroiters.

Listen to full interview above. 

Stateside
4:47 pm
Tue December 3, 2013

Detroit can file for Chapter 9 bankruptcy. Now what?

Detroit Mayor Dave Bing, Gov. Rick Snyder, and the city's Emergency Manager Kevyn Orr.
mich.gov Michigan Government

Today, U.S. Bankruptcy Judge Steven Rhodes ruled that Detroit is eligible to enter Chapter 9 bankruptcy protection, and to cut the pensions of city retirees.

What does it mean for residents? Current city employees? City pensioners?

Eric Scorsone, a municipal finance expert from Michigan State University, talks to us about what lies ahead after today’s ruling.

Listen to full interview above.

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