Michigan House approves Detroit bankruptcy bills - KMSP-TV

Michigan House approves Detroit bankruptcy bills

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LANSING, Mich. (AP) - The Michigan House has approved Detroit bankruptcy legislation that commits $195 million in state money to prevent deeper cuts in retiree pensions and the sale of city-owned art.

The House voted 74-36 Thursday to spend money to match contributions from foundations and the Detroit Institute of Arts. Eleven bankruptcy-related bills cleared the Republican-led chamber and go to the Senate.

One bill puts Detroit's finances under the oversight of a state-led commission for at least 13 years. The board could go dormant sooner if the city has balanced budgets.

Republican Rep. Al Pscholka of Stevensville says it's better to settle the bankruptcy rather than potentially leave Michigan liable for billions in pension debt. But Democratic Rep. David Nathan of Detroit says he fears Michigan's "takeover" of Detroit could go on forever.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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