The package of bills known as the “Grand Bargain,” to help seal the bankruptcy deal in Detroit, passed the Michigan Senate this afternoon in a bipartisan fashion after the House passed it last week.
The move by the Michigan legislature brings an end to weeks of speculation about the direction Lansing lawmakers would take on an issue that is central to addressing Detroit’s fiscal crisis.
Part of the deal would be an oversight committee to govern the financial affairs of the city with appointments from the governor, mayor and city council.
Detroit Mayor Mike Duggan hailed the vote by the Senate as guided by a bipartisan spirit.
“Today’s vote by the Senate to approve $195 million in financial aid for the city of Detroit will help us honor the contract we made with our city retirees. We all owe a debt of gratitude to Senate Republican Leader Randy Richardville and Democratic Leader Gretchen Whitmer for their leadership on this issue,” Duggan said. “The kind of bipartisan support we are seeing in Lansing right now is a clear sign of a new beginning for the city of Detroit.”
Business Leaders for Michigan, the organization of CEOs, welcomed the development.
“This package will help continue the momentum, progress and cooperation building in Detroit by helping the city get through the largest municipal bankruptcy in history in sound fiscal condition. Senate Majority Leader Randy Richardville and Senator Gretchen Whitmer provided tremendous leadership in securing passage of this important legislation,” said Doug Rothwell, president and CEO of Business Leaders for Michigan.
“Detroit is critical to Michigan’s turnaround. This legislation allows for meaningful and positive change to occur in our state’s largest city. When it comes to Michigan’s turnaround, we are all Detroiters now.”
The passage of the “Grand Bargain,” was viewed by some political insiders as a political landmine for incumbent Republican Governor Rick Snyder, especially if it failed, becoming a major issue in the gubernatorial campaign.
“People around the world know of our largest city’s proud past as well as the struggles of its difficult but necessary bankruptcy. May this proposed settlement now cast Detroit forever as an example of a community and a state pulling together and making tough decisions to create a brighter future,” Snyder said.
“Today we saw lawmakers from across the state stepping up to approve legislation that helps Detroiters — and all Michiganders. This settlement plan will allow Detroit to build a solid fiscal foundation for its continuing comeback. The bipartisan package shows the commitment of our partners in the legislature to assist Detroit pensioners, ultimately save taxpayers millions of dollars and improve the quality of life for the city’s 700,000 residents.”
The governor also credited both Democrats and Republicans for working on the deal.
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