LANSING, MI (MPRN)-- The $195 million dollar state contribution to the Detroit bankruptcy settlement cleared its first major hurdle today as the state House approved the payment by a wide margin.
Applause erupted as the final bill in the Detroit package was approved by a lopsided majority.
There were plenty of complaints about parts of the bills – such as years of post-bankruptcy state oversight, and the big withdrawal from the state’s “rainy day” savings.
But state Representative Harvey Santana (D-Detroit) said there’s too much at stake to say “no” to the settlement.
“Do you really want to open the gates of financial Armageddon and see what’s on the other side? Do you really want to do that? Do you really want to play chicken with this situation?”
That “other side” included the prospect of pensioners forced onto welfare, auctioning off masterpieces owned by the Detroit Institute of Arts, and additional months or years of litigation.
State Representative John Walsh (R-Livonia) was a main architect of the package. He says easy passage shows the entire state is aware that it cannot turn a blind eye to the problems facing its largest city.
“I think the state has some responsibility in this matter. Detroit is a legal part of our state, and it effects all of us. So we have to consider that. Detroit remains a very large economic engine for our state. It represents 7 percent of our population.”
A handful of Democrats voted against most of the bills – largely over strict post-bankruptcy oversight provisions.
State Representative David Nathan (D-Detroit) said that was too much for him to support.
“Imposing this legislation on the city of Detroit is not right. This is something that the city of Detroit, the elected officials that are here, will have to live with for a very long time if this passes. The vote that they take will be a vote for oversight and takeover of the city of Detroit.”
Nathan was one of seven Democrats who voted “no” on the main bill in the package.
There was also some controversy surrounding a bill that prevents the Detroit Institute of Arts from seeking a new operating millage. The state money helps avert big cuts to the city’s pensioners.
The 11-bill package now moves to the state Senate, where hearings could begin next week. Governor Rick Snyder and legislative leaders say they want the state’s part in the deal wrapped up by early June.