Detroit bankruptcy

Politics & Government
4:08 pm
Thu May 1, 2014

Federal money may be on the table for Detroit

The city of Detroit.
Credit 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. 

Stateside
4:47 pm
Wed April 30, 2014

Using tobacco settlement money to help Detroit

Could tobacco settlement money help the DIA?
Credit 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.

Politics & Government
5:09 pm
Tue April 29, 2014

Detroit EM tries to sell bailout to lawmakers

Gov. Snyder and Detroit emergency manager Kevyn Orr need to convince reluctant Republican lawmakers to send $350 million to Detroit.
Credit 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.

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Politics & Culture
4:36 pm
Tue April 29, 2014

Stateside for Tuesday, April 29, 2014

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.

Stateside
4:35 pm
Tue April 29, 2014

Kevyn Orr reaches tentative deal with Detroit's largest employee union

Credit 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.

Politics & Government
11:25 am
Mon April 28, 2014

Mediators in Detroit bankruptcy reach tentative deal with city's unions

Detroit Skyline
JSFauxtaugraphy/Flickr

The city of Detroit has reached a tentative deal with more than a dozen unions that represent thousands of workers in the city.

Mediators for the federal court overseeing Detroit’s reorganization under Chapter 9 bankruptcy announced the tentative deal this morning.

They say the coalition of unions includes 13 civilian unions and the American Federation of State, County and Municipal Employees union. AFSCME is the city’s largest union.

The mediators say the city and the unions have agreed on the "major aspects" of a five-year collective bargaining agreement. The deal still has to be approved by the federal bankruptcy judge Steven Rhodes and by the union's members.

Details of the deal will be released once it’s approved. Chad Livengood of the Detroit News reports he spoke with a source with knowledge of the agreement:

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Politics & Government
2:19 pm
Sat April 26, 2014

Before it moves ahead on parking, Detroit might want to take a close look at Chicago

Credit wikihow

If you’ve had a frustrating experience with a Detroit parking meter, you’re definitely not alone--about half those meters aren’t working at any given time.

The situation has the bankrupt city looking for outside operators to fix, and possibly run, its parking system.

It’s likely such a deal would get done fast. But experts warn Detroit might want to take a close look at Chicago’s recent experience first.

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Politics & Government
2:17 pm
Sat April 26, 2014

Retirees' committee will back Detroit pension cuts

Detroit skyline
Credit Peter Martorano / Flickr

DETROIT (AP) - A committee representing Detroit retirees has agreed to endorse the city's plan to cut pensions in bankruptcy. The committee is supporting deals struck last week that would cut the pensions of general retirees by 4.5 percent and eliminate cost-of-living payments. Police officers and firefighters would see a cut only in their annual inflation allowance. Detroit also wants to recover certain generous annuity payments made since 2003.

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Opinion
11:20 am
Fri April 25, 2014

To really understand Detroit's problems, you should read this book

I flew to Florida early last month, and while in the air re-read from cover to cover the one indispensable book that explains as nothing else what really happened to Detroit.

Eighteen years ago, University of Pennsylvania historian Thomas Sugrue published a volume mind-blowing in its brilliance of analysis and depth of research.

The title, “The Origins of the Urban Crisis,” is somewhat misleading.

This really is the book on how Detroit was destroyed - and destroyed itself - over the last 70 years.

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Politics & Government
9:57 am
Fri April 25, 2014

Detroit bankruptcy in cruise control – but there are big speed bumps ahead

Detroit’s historic bankruptcy case has picked up steam in the past couple of weeks.

The city reached tentative agreement with some of its major creditors, clearing the way for a relatively quick exit from bankruptcy court.

But there are still some key missing pieces that could derail the process, and now they’re mostly outside the city’s control.

“Now is the time to negotiate”

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Politics & Government
9:51 pm
Wed April 23, 2014

Gov. Snyder and Senate leader not embracing Bolger’s union demands

Bolger's GOP colleagues are distancing themselves from the speaker's call for unions to contribute to Detroit's "grand bargain."
Credit Michigan Municipal League / Flickr

Republican leaders in Lansing are not joining House Speaker Jase Bolger’s calls for unions to contribute to Detroit’s bankruptcy settlement.

Gov. Rick Snyder and several foundations have signed off on a complicated deal to protect retiree pensions and artwork at the Detroit Institute of Arts. The state’s contribution to the so-called “grand bargain” would be about $350 million, and state lawmakers would have to approve that money.

Bolger, R-Marshall, says it’s only fair for unions to contribute to the deal as well.

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Stateside
5:35 pm
Wed April 23, 2014

Stryker of the Detroit Free Press talks DIA art and bankruptcy

Detroit Institute of Arts
Credit Photo courtesy of the DIA

As Detroit's bankruptcy battle continues to unfold, a question remains: what will happen to the city-owned pieces at the Detroit Institute of Arts?

The city recently reached a tentative agreement with its retirees and pensioners. Could the agreements impact the possible sale of DIA work to satisfy Detroit's bondholders and other creditors?

Mark Stryker explored that question in The Detroit Free Press and we spoke with him today.

*Listen to the audio above.

Stateside
5:32 pm
Wed April 23, 2014

Detroit watches as Delaware Art Museum sells pieces to repay debts

The Rivera court in the Detroit Institute of Arts.
Credit Maia C/Flickr

The reality of worried creditors eyeing the treasures at the DIA has the museum world watching very closely.

There are few people who want to see the museum's art leave Detroit.

But in the face of monstrous debt, should it be a case of "hands off the art"?

Recently, the Delaware Art Museum announced it had decided, "with heavy hearts, but clear minds" to sell up to four works from its collection to repay debt from an expansion and thus, keep its door open.

We wanted to get a museum expert's view in this debate, so we welcomed the director of the University of Michigan's Museum Studies Program, Ray Silverman.

Listen to the full interview.

Politics & Culture
4:27 pm
Tue April 22, 2014

Stateside for Tuesday, April 22, 2014

Big news out of Washington, D.C. today: The U.S. Supreme Court has upheld Michigan’s ban on race- and gender-based affirmative action. The Court's majority held that Michigan voters were within their rights to amend the state constitution to ban the college admission policies. We dove into the decision on today's show.

Then, we checked in with Michigan Radio's auto-beat reporter Tracy Samilton about big changes that are likely in the leadership at Ford.

And, on this Earth Day, what moths can tell us about the world's changing climate.

Also, we spoke with author Joseph Tirella about his book Tomorrow-Land: The 1964-65 World's Fair and the Transformation of America.

First on the show, it's taken months of bargaining, bickering and posturing, but there have been promising advances in the Detroit bankruptcy journey.

Pieces are starting to fall into place that could complete the so-called "grand bargain" that would protect the DIA collection and soften the blow for Detroit's retirees.

First came word of a tentative deal between the city and its pensioners. A day later, the board that represents police and fire retirees gave unanimous approval to the deal.

Now it's on to the next hurdle: getting state lawmakers to approve Michigan's share of the grand bargain – $350 million.

Chris Gautz, Capitol Correspondent of Crain's Detroit Business, joined us today.

Stateside
4:06 pm
Tue April 22, 2014

Will state lawmakers approve the Detroit bankruptcy "grand bargain?"

Credit Peter Martorano / Flickr

It's taken months of bargaining, bickering and posturing, but there have been promising advances in the Detroit bankruptcy journey.

Pieces are starting to fall into place that could complete the so-called "grand bargain" that would protect the DIA collection and soften the blow for Detroit's retirees.

First came word of a tentative deal between the city and its pensioners. A day later, the board that represents police and fire retirees gave a unanimous approval to the deal.

Now it's on to the next hurdle: getting state lawmakers to approve Michigan's share of the grand bargain –$350 million.

Chris Gautz, Capitol Correspondent of Crain's Detroit Business, joined us today.

Listen to the full interview above.

Politics & Government
9:07 am
Sat April 19, 2014

The week in review

Credit Jarrad Henderson / Detroit Free Press

This Week in Review, Jack Lessenberry and Rina Miller discuss the latest with the Detroit bankruptcy, road funding and the state's foreclosure rate.

Read more
Politics & Government
10:58 am
Thu April 17, 2014

Detroit bankruptcy judge revives talks on regional water agency

A Detroit Water and Sewerage manhole cover.
Credit user rob zand / Flickr

DETROIT (AP) - A judge has ordered the city of Detroit and the suburbs to further explore the creation of a regional water department.

Bankruptcy Judge Steven Rhodes granted Wayne County's request Thursday to have the parties sit down with a mediator.

Detroit's water department provides water to Wayne, Oakland and Macomb counties. Detroit emergency manager Kevyn Orr has expressed interest in spinning off the department as a regional agency.

But some suburban leaders are concerned about future financial burdens on their residents.

The judge says the bankruptcy case is a "unique opportunity" to keep negotiating. Otherwise, Rhodes says the opportunity "will be lost forever."

Politics & Government
7:00 am
Thu April 17, 2014

Now it's up to Lansing to make Detroit's "grand bargain" work

Credit Sam Beebe

Now that Detroit’s bankruptcy is moving along, Gov. Rick Snyder is moving to secure the state’s end of a so-called “grand bargain.”

It would use $816 million to minimize city pension cuts, and protect the Detroit Institute of Arts from potential liquidation to pay off creditors.

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Politics & Government
6:00 am
Thu April 17, 2014

With major settlements piling up, Detroit bankruptcy moves along at lightning speed

Detroit retirees protesting pension cuts.
Credit Sarah Cwiek / Michigan Radio

This has proven to be a watershed week in Detroit’s bankruptcy case, which is now moving along at lightning speed.

On Tuesday, representatives for Detroit’s two pension funds reached tentative settlements with the city.

The deals would spare Detroit’s retired police officers and firefighters any direct cuts to their pensions, while non-uniform retirees would take 4.5% cuts.

Read more
Stateside
3:43 pm
Wed April 16, 2014

With deals made with creditors, what's next in Detroit's bankruptcy?

Detroit's skyline.
Credit Lester Graham / Michigan Radio

It's turning into a momentous week in Detroit's quest to exit bankruptcy.

First came a deal with two global banks: UBS and Bank of America.

Then, an agreement with leaders of Detroit's retired police and firefighters.

That was followed late yesterday by a settlement with the remaining Detroit retirees.

Daniel Howes, a business columnist with The Detroit News, talks with us about the next challenges in the Detroit bankruptcy saga.

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