Earlier this year, the Michigan House created a special committee chaired by Rep. John Walsh, R-Livonia, to assist bankruptcy negotiations between the City of Detroit and the state while protecting Michigan’s taxpayers. The committee on Detroit’s Recovery and Michigan’s Future came to its conclusion on the Detroit Riverfront in June, when Gov. Rick Snyder signed historic bankruptcy legislation into law, and the city is now in the finishing stages of its bankruptcy proceedings.
The city’s bankruptcy trial has been trudging onward fairly rapidly throughout the fall, wrapping up just this week. Key components of the case included making provisions and plans to repay creditors who have intertwined with Detroit financially as the city reevaluates its fiscal responsibilities.
The current settlement plan awaiting the judge’s decision allows Detroit to improve essential services for its residents while resolving more than $7 billion in debt. It also helps the city — and its pensioners — move forward more quickly, distancing the community from the decades of financial mismanagement that led Detroit to file for bankruptcy out of necessity.
We think we made our case and we met our burden. […] I think we’ve met all the conditions we need to meet, but here again, [Judge Steven Rhodes is] the final voice in this matter. He’s got a lot of work to do, a heavy decision.
–Detroit emergency manager Kevyn Orr, via Freep
The city of Detroit’s government, residents and pensioners have faced a number of hardships in recent years, especially with their city struggling to recover from population decline and disappearing jobs.
However, if the city’s plan to remove debt is approved by the judge on Nov. 7, the settlement will allow Detroit to continue rebuilding and attracting new people and new businesses. In fact, optimism for the city’s future continues to grow, as evidenced by today’s announcement that Fifth Third Bank will move its regional headquarters to downtown Detroit, bringing new jobs and investment to the city.
The entire state of Michigan will benefit from a happier, healthier Detroit. With this knowledge, Michigan House Republicans made tough, responsible financial decisions to help improve Detroit’s challenging situation, and now all of Michigan waits to see what Detroit’s future holds.
Read more on Detroit’s bankruptcy settlement from Michigan House Republicans
+Legislative package to settle Detroit’s bankruptcy introduced in state House
+Walsh leads introduction of Detroit committee bills
+Walsh, Orr kick off House committee meetings on Detroit’s Recovery, Michigan’s Future
+Committee on Detroit’s Recovery and Michigan’s Future hears from bill sponsors
+Walsh welcomes public comment at third committee meeting this week
+Bankruptcy expert presents to committee on Detroit settlement package
+Committee approves historic bankruptcy settlement package for city of Detroit
+Landmark bill package passes House to help settle Detroit’s bankruptcy
+Momentous Detroit settlement package signed into law