In this week’s Metro Times we took a look at the state legislature’s role in Detroit’s ongoing bankruptcy — in particular, how it must approve a $350 million pledge for the so-called “grand bargain” to remain intact. And, with last night’s announcement of a significant deal between the city and Detroit’s pension boards and retiree groups, the ball is Lansing’s court now. The new deal, first reported by the Freep, would cut general employees monthly pension checks by 4.5 percent and eliminate their cost-of-living increases. Police and fire retirees would see no cuts to monthly checks, while their cost-of-living increases would be reduced from 2.25 percent to 1 percent. Under the original offer, police and fire retirees cuts were as high as 14 percent, with general retirees as high as 34 percent, that is, if the groups rejected the “grand bargain,” an $816 million proposal funded by foundations, the state, and the DIA to shore up pensions. The sweeter deal for pensions, though, it must be noted, entirely relies on the state legislature approving $350 million for Detroit’s bankruptcy. And while this broke after Metro Times went to press, that was the focal point of this week’s News Hits column — so, it’s worth repeating: The […]
The post Detroit’s grand bargain still needs Lansing’s approval appeared first on Metro Times Blogs.