While there are many moving parts to state-appointed emergency manager Kevyn Orr’s restructuring plan, the pension agreement is viewed as a centerpiece. If the retirees and employees do not support it, $816 million from the state, foundations and the Detroit Institute of Arts would vanish and deeper pension cuts could become inevitable.
The trial on the city’s case will be held this summer.
“This has been unbelievable,” U.S. District Judge Gerald Rosen, the chief mediator between the city and its creditors, said of legislators coming through with the financial package.
Despite conservative groups’ opposition to bailing out Detroit, the Republican-led Senate voted 21-17 to pass the main bill allocating the $194.8 million.
Snyder said he will sign the legislation in a day or two.
“This is a good solution. This is a way we can support one another and again make it Detroit, Michigan, instead of Detroit versus Michigan,” he said.