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flint retiree

photo by Anna Strumillo Phuket - Thailand / www.fotopedia.com

Michigan’s cities and counties have made a lot of promises to their workers about retirement.

But when it comes to healthcare, local governments owe more than $7 billion dollars to retirees – money they just don’t have right now.

Michigan State University’s Eric Scorsone has been crunching the numbers.

Steve Carmody/Michigan Radio

Flint leaders say a federal court decision is threatening the city’s ability to recover financially.

Last week, a federal appeals court upheld a lower court ruling preventing the city from implementing cuts to retiree health care.  The plan would make Medicare-eligible city retirees pay higher monthly premiums, co-pays and deductibles.  

But the retirees sued.

Flint city leaders were hoping to reap $8.5 million over two years from the retiree health care cuts.