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detroit institute of arts

For the first time in 15 years, the Detroit Institute of Arts has a staff of three in its contemporary art department.
Detroit Institute of Arts

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.

Detroit Institute of Arts
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.

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.

Paul Hitzelberger / United Photo Works

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, host Jennifer White discusses the latest developments in the Detroit bankruptcy case and examines the implications.

There was a significant breakthrough yesterday. A settlement was announced between the city of Detroit and three major bond insurers. The insurers will get about 74 cents on the dollar, a significant increase from what emergency manager Kevyn Orr originally offered, and the roughly $50 million in savings will go to support retirees.

The question now is whether retirees will accept further cuts to their pensions, given the fact that Gov. Rick Snyder has stated that the state will not put any money forward unless the retirees agree to cuts. Ken Sikkema says it's imperative that retirees back the plan.

Detroit skyline.
user JSFauxtaugraphy / Flickr

There have been two big developments this week in the high-stakes showdown over Detroit's pensioners, its art treasures and creditors who hope bankruptcy judge Steven Rhodes will pressure the city to put those art treasures on the table.

There's a lot to try to sort out. So, as we do each Thursday, we spoke to Detroit News business columnist Daniel Howes.

Listen to the full interview above.

The average gas mileage of new vehicles sold in the U.S. has steadily been improving, and greenhouse gas emissions are at an all-time low. The Environmental Protection Agency also recently set new emissions standards, scheduled to be phased in between 2017 and 2025, that will reduce the amount of sulfur found in gasoline.

But is the slow and steady climb in fuel economy and emissions enough? On today’s show, we ask if the Obama administration's 2016 and 2025 fuel efficiency goals setting the bar too low?

Then, a new documentary film brings us the story of the Great Lakes as seen through its ice.

And, last month, Gov. Snyder confirmed a financial emergency existed in Royal Oak Township. Can other communities learn from Royal Oak’s situation?

Also, the Share Art Project is a collaborative effort among artists at the Buckham Gallery, students and the Genesee Valley Regional Center. We spoke to a Buckham board member about the program and an upcoming exhibit.

First on the show, there have been two big developments this week in the high-stakes showdown over Detroit's pensioners, its art treasures and creditors, who hope bankruptcy judge Steven Rhodes will pressure the city to put those art treasures on the table.

There's a lot to try to sort out. So, as we do each Thursday, we spoke to Detroit News business columnist Daniel Howes.

Could tobacco settlement money help the DIA?
DIA

One group who stands to lose a lot in Detroit’s bankruptcy has upped the ante in the battle over the Detroit Institute of Arts.

The Financial Guaranty Insurance Corporation, a major bond insurer, has gone out and solicited bids for the museum’s assets.

And in papers filed in federal bankruptcy court Wednesday, FGIC said it’s received four tentative bids for the museum’s assets, or portions of them.

The bidders include:

If you aren’t following every twist and turn in the saga of Detroit’s bankruptcy, you may think things are well on track.

Today, in fact, came the good news that the city has apparently reached a deal with its unsecured bondholders, who are evidently going to settle for almost 75 cents of every dollar owed them. 

But the biggest and toughest challenges are ahead.

And if you think the Detroit Institute of Arts is now safe, think again.

Here is how things stand:

DIA/Flickr

Even before Detroit officially filed for bankruptcy last July, many Michiganders and outsiders feared for the future of the Detroit Institute of Arts – the city’s so-called "crown jewel."

With the city in financial turmoil, the newly appointed emergency manager of Detroit started a catalog of city assets. Many feared the DIA's status as a city asset would mean part of the museum’s collection could be sold off to satisfy creditors.

Ninety-five years ago, the Detroit Institute of Arts was in deep, deep financial trouble.

It kept the doors open by turning over the building and its art to the thriving city of Detroit in exchange for annual funding.

And now it stands, poised to flip that arrangement upside down, hoping to cut Detroit's ownership of the DIA in order to protect its treasures from hungry creditors.

There's quite a long and complicated history between the DIA and the city.

And yet, despite nearly a century tied together, the reaction of Detroiters to the proposed spin-off of the DIA is pretty muted – certainly much different than the reaction when the state took over operations of Belle Isle.

Detroit Free Press writer Mark Stryker explored this in his piece for last Sunday's paper.

Listen to the full interview above.

Detroit Institute of Arts / Detroit Institute of Arts

A 17th century painting recently discovered in suburban Detroit is now on display at the Detroit Institute of Arts.

DIA Executive Director of Collection Strategies and Information Salvador Salort-Pons spotted “The Infant Saint John the Baptist in the Wilderness,” a painting by Spanish artist Bartolome Esteban Murillo last year while lecturing at Meadow Brook Hall in Rochester.

The painting, which experts date to 1670, was purchased by Alfred and Matilda Wilson – the original owners of Meadow Brook Hall – in 1926. Matilda, the widow of Dodge co-founder John Francis Dodge, was a big art collector. She also co-founded the Oakland campus of Michigan State University, which is now Oakland University.

As part of a deal with OU, DIA conservators allowed art students at the university to get a rare glimpse of the entire conservation process. Though the museum often brings in high-school and college students, it's not often a group gets to watch a treatment from start to finish.

"Students were able to follow a full treatment and do this in more depth," Alfred Ackerman said, head of conservation at the museum. 


* "This is not a bailout"

Gov. Rick Snyder used the phrase “this is not a bailout” five times in the 26 minutes he used to announce the first details of a “grand bargain” to settle the Detroit bankruptcy and the fight over pension benefits.

The governor’s plan would commit as much as $350 million over 20 years to help dig Detroit out of bankruptcy and keep the assets of the Detroit Institute of Arts off the auction block.

The money would most likely come from what Michigan is getting from the national tobacco settlement, that 15-year-old cash cow that’s been tapped for college scholarships, economic development, Medicaid – the list goes on. And now it might be part of the Detroit bailout (but don’t call it a “bailout").

So, there’s this plan and a revenue stream to go along with it. Now, the governor just has to sell it to the Legislature.The Michigan Constitution requires every dollar that goes to the state to go through the Legislature’s appropriations process.

And we wouldn’t exactly call this a done deal or an easy sell. After all, this is an election year. And Republicans, especially those west of Lansing and north of Clare, have little reason to go along with a political hot potato like aid for Detroit. At least two Senate Republicans, probably more, are looking at primaries. Plenty of House Republicans are also looking over their shoulders for a Tea Party primary challenge. Politically speaking, there are probably more reasons not to do this than to do this.

Big news out of Lansing yesterday: Gov. Rick Snyder has proposed committing up to $350 million of state money to guarantee city of Detroit pension benefits and to keep Detroit Institute of Arts art off the auction block.

Big news, but not altogether surprising.

Detroit News business columnist Daniel Howes has been writing about this possible cash infusion for weeks now. He joined us today to discuss the issue.

Listen to the full interview above.

Gov. Rick Snyder has proposed committing up to $350 million of state money to guarantee city of Detroit pension benefits and to keep Detroit Institute of Arts' art off the auction block. On today's show, we spoke to Daniel Howes about what this cash infusion would mean. 

And, the recently passed farm bill is cutting Supplemental Nutrition Assistance Program (SNAP) funding by more than $4 billion over the next 10 years. We looked into how this cut will affect people in Michigan who rely on food assistance.

Also, we heard Andy Soper's  story of failure from Failure:Lab Grand Rapids.

First on the show, Michigan's unemployment rate dropped to 8.4% last month. That December number brings the state's 2013 average jobless rate to 8.7%.   

That's down from 8.9% the year before.

And that means Michigan's annual jobless rate has gone down now for three years in a row.

But are these numbers a good indication of how Michigan's overall economy is faring?

Ballard joined us today to help us answer that question.

There was a lot of rejoicing yesterday at the news that the governor had signed on to a so-called “grand bargain” to help save the collections of the Detroit Institute of Arts.

Detroit is, of course, going through bankruptcy.

Creditors want as much as possible of the money owed them. Those counting on city pensions want to make sure they get their money, even if the DIA’s world-class collections have to be sold.

Selling the art would be devastating not only to art lovers, but it might deal the city a cultural blow from which it could never recover.

Gov. Snyder

Update 5:00 p.m. from Rick Pluta:

Governor Rick Snyder has proposed committing up to $350 million to help mitigate cuts to Detroit pension benefits – as well as keep assets of the Detroit Institute of Arts off the auction block.

The state’s offer would play out over 20 years and would match money raised from private donations to make sure DIA paintings, sculptures, and other works of art don’t get sold off to pay pension benefits that are central to the bankruptcy negotiations.

“This is not bailout,” he said. “This is a settlement. I want to be very clear about that.”

Snyder said one of the conditions would have to be creditors dropping any legal claims to DIA asserts.

“This is not geared toward the bondholders, bankers, or people on Wall Street,” he said. “This is geared towards Michiganders that worked really hard in our state and have a pension and are looking at a difficult situation – how do we improve that situation?” 

The governor says he hopes the state’s offer will help move the city through bankruptcy more quickly, which would be a good deal for the state.

The proposal must still be adopted by the Legislature. Republican leaders say hearings will begin very soon.

“We have some questions, some ‘t’s’ that need be crossed, some ‘i’s’ that need to be dotted, but in general is something that’s very positive and being received that way,” said state Senate Majority Leader Randy Richardville (R-Monroe). “So, we will consider it over the next few weeks. We will look in detail, and consider it as best we can.”

The governor’s offer came as Detroit bankruptcy judge Steven Rhodes refused to allow an evaluation of DIA assets to go ahead. Detroit’s creditors could still challenge the plan in bankruptcy court.

The state’s share would match contributions from private donors. It would come from money the state gets annually from the 1998 nationwide settlement between states and tobacco companies. The plan will be part of the governor’s budget proposal to be delivered Feb. 5.

Update 4:44 p.m.

Gov. Snyder and Sen. Majority Leader Randy Richardville (R-Monroe), and Speaker of the House Jase Bolger (R-Marshall) announced that they plan to support legislation aimed at saving Detroit pensions and DIA art.

From their press release:

Snyder, Senate Majority Leader Randy Richardville and House Speaker Jase Bolger announced they are working with the Michigan state legislature to allocate up to $350 million over the next 20 years to be combined with funds raised by private Michigan foundations to assist in saving retiree pensions. The governor recommends these state funds would come from tobacco settlement revenues...

“We are working on a fiscally sound mediation solution with clear conditions.  We will not participate in a bailout, nor allow these funds to go anywhere other than directly to retiree pensions,” said Snyder.  “This is an opportunity to work together to find solutions that will allow Detroit to get on a firm foundation faster, help pensioners, and ultimately save the Michigan taxpayers millions in the long run.  I want to applaud the foundations for taking this unprecedented and generous step and the mediators for facilitating these discussions.”

Snyder said there would be "strict conditions on any funds allocated towards the settlement." Money from the state, he said, must solely go toward pensions and that "independent fiduciaries manage the pension funds going forward."

Detroit's emergency manager released a statement after today's announcement saying in part:

"The level of proposed investment by the philanthropic community and the State will go far in helping reach a timely and positive resolution of the City's financial emergency.  A mutually agreed resolution to outstanding bankruptcy issues is the best way to help the City restore basic and public safety services to its 700,000 residents.  It is now time for the remaining parties to set aside the bargaining rhetoric and step forward and join this settlement to help this great city regain its footing and become once again an attractive place to live, work and invest."

MPRN will have more for us later.

11:43 a.m.

Many political deals have been dubbed a "grand bargain."

This "grand bargain" involves private money and potential state money to save Detroiters' pensions and the artwork at the Detroit Institute of Arts.

This morning federal mediators involved in the Detroit bankruptcy released a statement saying in part:

"We are advised that the governor of the State of Michigan, Rick Snyder, intends to announce soon his support for significant state participation in the plan to help protect the pensions of city of Detroit retirees, support the DIA, and revitalize the city in the aftermath of the bankruptcy. The governor  has indicated that he will engage with the Michigan Legislature to help secure this support for the plan."

Gov. Snyder is expected to hold a press conference at 3:30 announcing more details of the plan.

He'll be joined by Sen. Majority Leader Randy Richardville (R-Monroe), and Speaker of the House Jase Bolger (R-Marshall). It's a sign that these legislative leaders are supportive of the plan.

Chief bankruptcy mediator Judge Gerald Rosen struck a deal with private foundations that pledged more than $300 million to help Detroit solve the pension/art problem.

With that money pledged, state leaders took note and are deciding whether to try to match the money pledged by the foundations.

Earlier reports stated that the plan calls for sending Detroit $350 million over 20 years. 

We'll find out more details later today.

How Michigan legislators will react to this plan is anyone's guess. In their statement, federal mediators urged that "all parties approach the issue with an open mind."

Gov. Rick Snyder formed a workgroup that made 69 recommendations on how the state of Michigan should manage and improve its mental health care system. The question is, how many of those recommendations will be turned into actual policies?
gophouse.com

Foundations and individuals have stepped up to pledge big dollars to the struggling city of Detroit, and now Gov. Rick Synder is floating a plan to send Detroit $350 million over 20 years.

The Detroit Free Press named an anonymous source when reporting the plan this morning.

Michigan Senate Majority Leader Randy Richardville (R-Monroe) confirmed today that Snyder has floated the plan.

Yesterday, on Michigan Radio, we discussed the news that a group of philanthropists and foundations have raised more than $300 million to try to save works from the Detroit Institute of Arts and protect city worker pensions.

However, in the course of our conversation, we had a couple errors.

AnneMarie Erickson is the Chief Operating Officer of the Detroit Institute of Arts and she joined us to help clarify the situation.

*Listen to the audio above.

Governor Rick Snyder
Rick Snyder for Michigan / Facebook Page

This Week in Michigan Politics, Jack Lessenberry and Christina Shockley talk about Governor Rick Snyder's upcoming State of the State address, a new effort to save Detroit pensions and the Detroit Institute of Arts, and how abortion right advocates are backing off efforts to block a law that requires women to buy a separate health insurance rider to cover abortions.

Ever since Detroit’s bankruptcy filing was announced last summer, there has been one major concern in the art world.

What will happen to the Detroit Institute of Arts and its world-class collection, something previously assumed to be untouchable and priceless? When emergency manager Kevyn Orr said the collection needed to be inventoried and appraised, it caused greater shock in some circles than the bankruptcy itself.

At first, I assumed this was a bluff, possibly designed to demonstrate how deep the city’s crisis really was.

But it quickly became clear that the creditors want their money by any means necessary. And for many, art takes a back seat to their stomachs. One former council member, a highly educated woman and a single parent, told me “I am tired of hearing that the pension I worked for is less important than your right to drive down here and see a Van Gogh.”

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

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.

user Eldacar / Flickr

America’s top female chess player will be competing against 50 children tonight at the Detroit Institute of Arts.

International Grandmaster Irina Krush will be playing simultaneous matches, or simul, against 50 members of the Detroit City Chess Club, the Associated Press reported. Members of the club, ranging from elementary school students to high schoolers, have earned impressive awards of their own, including two recent state titles.

In December, Detroit Public TV was awarded a national grant to cover the Detroit City Chess Club, following the team and the impacts of chess on the students. The short documentary will be shown at the DIA later this year.

Can’t make it out to the DIA tonight for the chess extravaganza? No worries. For players looking to boost their chess skills at home, Krush released a series of pun-tastic training videos entitled “Krushing Attacks.” 

- Melanie Kruvelis, Michigan Radio Newsroom

DIA

That's one of the sad questions people are asking themselves in the face of Detroit's restructuring under Chapter 9 bankruptcy.

Detroit pensioners stand to lose their quality of life, and the community stands to lose a significant source of culture and pride.

All the interested parties are working closely with federal bankruptcy mediators to find a solution to the prickly question, but they needed information first.

Part of that information arrived this week.

Christie's delivered its final evaluation of part of the art collection in the Detroit Institute of Arts. The estimated value is somewhere between $454 million and $867 million - a fraction of Detroit's $18 billion debt.

The auction house only looked at part of the collection.

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.

Leaders at the Detroit Institute of Arts praised the efforts of federal mediators today saying they're working toward a solution that protect's the museum's collection while giving relief to the city of Detroit.

The collection has been seen as a potential source of revenue by some creditors who are poised to lose a lot of money in the Detroit bankruptcy.

More from the DIA's press release:

At a meeting with the mediators on Tuesday, the DIA expressed enthusiastic support for the work that has been done to date, and pledged to help refine and implement the plan in the weeks ahead. The plan engages national and local foundations among other funding sources to create a mechanism for providing cash for the City, while ensuring the present and future safety of the DIA collection. Details of the plan are still in process, as meetings with the foundation community and others continue. The DIA has begun to mobilize its considerable public support to help implement a fundraising strategy that will satisfy the City’s needs, while ensuring the well-being of the museum for the residents of Detroit, southeast Michigan and beyond.

The state House is expected to take up a controversial telecommunications bill. 

The measure would let AT&T end traditional landline phone service as long as there is Internet phone service that can take its place. But, in some rural areas in Michigan, Internet phone service can be spotty. On today's show, we took a look at what the legislation could mean for you.

Then, could private philanthropy save the art at the DIA?

And, how would Shakespeare’s play King Lear look like if it were set in Flint? One professor and her students found out.

Also, we spoke to meteorologist Mark Torregrossa about which parts of the state will be getting snow this week.

First on the show, what happens when a child is struggling to read at his or her grade level?

In too many cases, the student moves up a grade anyway and the struggle continues, resulting in high school graduates who are poor, ineffective readers. And that can impact that student's chances of going to college and then getting a job that provides a good level of pay over a lifetime.

There's a package of bills sponsored by Holland Republican Representative Amanda Price now working through the State that tries to tackle this problem. It's called the "read-or-flunk law."

In a nutshell, if third-grade kids aren't reading, hold them back.

Ron French reported on the pros and cons of these bills for Bridge Magazine, and he joined us today to discuss the issue.

DIA

There's been a new development in the unfolding story about Federal Judge Gerald Rosen and his bid to protect the DIA collection and the pensions of Detroit city retirees.

Judge Rosen is serving as the mediator in the Detroit bankruptcy case. We've heard how he is trying to craft together a plan wherein at least 10 national and local charitable foundations would chip in to create a $500 million fund, a fund that could be leveraged to not only protect the DIA treasures but to lessen the pain of retiree pension cuts.

Late last week, a former Wayne State Chemistry professor stepped forward with an offer.

Dr. A. Paul Schaap developed a molecule that created light through chemistry. His discovery proved very useful in a wide range of medical tests. He then founded the company Lumigen, and he made many millions as a biotech entrepreneur.

Over the years, Paul Schaap has given many millions back to Wayne State, to Hope College, to professors and researchers. Now, Paul Schaap is donating $5 million to help the DIA and the city retirees.

Dr. A. Paul Schaap joined us today.

Listen to the full interview above.

User: Brother O'Mara / flickr

State Senate approves bill making it easier to end land line service

"Phone companies would have an easier time discontinuing traditional land lines under legislation that has passed the Michigan Senate. The bill approved yesterday is designed to loosen regulations on AT&T and other providers as more customers forgo land lines and just carry cellphones," the Associated Press reports.

House is close to vote on issue ads and campaign finance bills

"State House Speaker Jase Bolger says the House is close to a vote on legislation that would double the amount of money people can give to political campaigns. The bill would also block a proposal that would require groups who pay for so-called 'issue ads' to disclose their donors," Jake Neher reports.

Philanthropists encouraged to save DIA and pensioners

One Michigander has offered to donate $5 million to help protect the DIA and Detroit retiree pensions. As the Detroit Free Press reports,

"Millionaire A. Paul Schaap said he plans to meet today with U.S. Chief District Judge Gerald Rosen, who is serving as mediator in Detroit’s bankruptcy case. Rosen has been trying to persuade at least 10 charitable foundations to put up $500 million to spin off the DIA from the city, which could then use the money to reduce pension cuts and improve services."

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. 

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