Detroit bankruptcy

Inside the Michigan Senate.
Lester Graham / Michigan Radio

The $195 million Detroit rescue package moves to the Michigan Senate this week after easily clearing the state House by wide margins.

Gov. Rick Snyder is hoping for speedy action to get the deal wrapped up no later than early June.

“I would remind people our work is not done,” Snyder said. “I’d like to thank the House for their wonderful work, but we still have work to get done in the Senate. Hopefully, we can get that done in a prompt fashion, but this is a great opportunity to move Michigan ahead.”

Detroit Mayor Mike Duggan says he “completely supports” the Detroit aid package being debated in Lansing, despite the conditions attached to it.

The 11-bill package would put $195 million in state funds toward the $816 million “grand bargain:” a deal to smooth Detroit’s trip through bankruptcy by minimizing cuts to retiree pensions, and shielding the Detroit Institute of Arts’ assets from city creditors.

Detroit Skyline
Shawn Wilson / Wikimedia Commons

This Week in Review, Jack Lessenberry and Rina Miller discuss the latest with the Detroit bankruptcy including political push back from the Koch brothers and money from JPMorgan Chase, and the ongoing debate about Michigan's crummy and crumbling roads.


In Lansing yesterday with the state House approving that $195 million for Detroit, a lot of us were anticipating a close vote. A very close vote.

There was a lot of back and forth about how many votes the Republicans would have to put up and how many the Democrats would have to put up. But, in the end, it wasn’t even close.

Other than the dust-up over the Detroit Institute of Arts millage the package passed by big lopsided margins and overwhelming Republican support. Which, when you think about it, is a very interesting dynamic: overwhelming GOP support for the state coming to the aid of a city run by Democrats.

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.

Detroit Skyline
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 Skyline
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.

Lester Graham / Michigan Radio

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.

The Michigan House of Representatives.
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.

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.

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.

Lester Graham / Michigan Radio

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. 

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.

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

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.

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.

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. 

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.

Detroit skyline.
user 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. 

Lester Graham / Michigan Radio

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.

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.

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.

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.

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.

User: mattileo/flickr

It’s Thursday, the day we talk Michigan politics with Ken Sikkema, former Senate Majority Leader and senior policy fellow at Public Sector Consultants, and Susan Demas, publisher of Inside Michigan Politics.

This week, Jennifer White, host of All Things Considered, examines the latest developments surrounding the Detroit bankruptcy case. Emergency manager Kevyn Orr spent two days in Lansing this week, trying to galvanize lawmakers to support a grand bargain to reinforce Detroit pensions while protecting the Detroit Institute of Arts. The state is being asked to contribute $350 million, but House Speaker Jase Bolger has balked at the proposal.

Ken Sikkema emphasizes that because it is an election year, Speaker Bolger will have a difficult time getting full Republican support to contribute state money to help with Detroit’s financial woes, and that in order for a deal to proceed where the state will contribute financially, it will rely on bipartisan support.

“The speaker is walking a fine line here, between driving a hard bargain to show that Republicans actually got something in the way of more accountability so that this doesn’t happen again,” Sikkema explains. “Down in Detroit, the pieces are starting to fall into place to make this happen and the last big piece is state participation. But he’s never going to get full Republican support for this, particularly in an election year, it’s going to have to be a bipartisan vote.”

Lester Graham / Michigan Radio

Kevyn Orr has wrapped up his two days of meeting with lawmakers in Lansing. His goal was to win support for some $350 million as the state's share in the so-called grand bargain. 

We shift our focus to money not from the state capitol, but the nation's capitol. 

Republicans, even some Democrats, are dead-set against the idea of a federal bailout for Detroit. GOP Senator David Vitter of Louisiana tried and failed last fall to get a law passed to prevent federal money from ever going to the city. 

But are the tides changing? 

The Obama Administration and Michigan officials are now in talks to give Detroit $100 million federal dollars for blight remediation, and just last week Treasury Secretary Jack Lew visited Detroit. 

Detroit Free Press Washington, D.C. reporter Todd Spangler joined us.

Listen to the full interview above. 

Could tobacco settlement money help the DIA?
DIA

Should money from a national tobacco settlement go toward fighting tobacco use and improving our health?

Or can the state raid that tobacco settlement "piggy bank" to help save works from the Detroit Institute of Arts works and help City of Detroit retirees?

That's the question Gary Heinlein addressed in a recent story for the Detroit News.

Heinlein joined us today.

*Listen to our conversation with her above.

LiveStream

Detroit emergency manager Kevyn Orr is spending a couple of days in Lansing for closed-door meetings with state officials. His primary mission is to convince reluctant state lawmakers to support the Detroit bailout package.

The state’s share, which would have to be approved by the Legislature, is $350 million dollars. That would help mitigate cuts to pension benefits as part of the city’s bankruptcy, and ensure the assets of the Detroit Institute of Arts are safe from the auction block.

One of the most important aspects of the Affordable Care Act is consumer choice. More choice means more competition among insurers, and that can lead to lower costs for consumers.

But if you live in a rural area, you may not have a whole lot of choices when it comes choosing a health plans. On today's Stateside, we took a look at health care in Michigan's rural areas.

Then, Michigan’s new crowdfunding law opens the door to everyday people who want to invest in Michigan-based startups and small businesses. We heard about the benefits and risks that come with crowdfunding for equity.

And, we spoke with Garrison Keillor about the 40th anniversary of A Prairie Home Companion and his upcoming book.

First on the show, Detroit Emergency Manager Kevyn Orr is in Lansing today and tomorrow, getting face-time with the lawmakers whose vote is crucial to the so-called grand bargain, the complicated deal to protect city retirees and the collection at the Detroit Institute of Arts.

Orr heads to Lansing with a new piece of the puzzle in hand: a tentative five-year deal reached Monday with AFSCME, Detroit's largest employee union.

Detroit News reporter Chad Livengood joined us today to give us an idea of what progress has been made and what lies ahead for the city.

Kevyn Orr
Sarah Cwiek / Michigan Radio

Detroit Emergency Manager Kevyn Orr is in Lansing today and tomorrow, getting face-time with the lawmakers whose vote is crucial to the so-called grand bargain, the complicated deal to protect city retirees and the collection at the Detroit Institute of Arts.

Orr heads to Lansing with a new piece of the puzzle in hand: a tentative five-year deal reached Monday with AFSCME, Detroit's largest employee union.

Detroit News reporter Chad Livengood joined us today to give us an idea of what progress has been made and what lies ahead for the city.

Listen to the full interview above.

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