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Posted by: Maricopa Lawyers on Jun 13, 2014

On July 18, 2013, the city of Detroit, Michigan filed for Chapter 9 bankruptcy in what went down in US history as the largest municipal bankruptcy filing, coming in at a whopping $20 billion. Hope may be in sight, however, has continued taking steps in the right direction to end its bankruptcy once and for all.

According to a recent article in the Detroit Beat, lawmakers in Lansing have passed what will hopefully be the last segment of the city’s adjustment plan, named the “Grand Bargain.” This partnership between private and public donors is the first of its kind and will combine funding from the Detroit Institute of Art, state government, as well as other private foundations. 

One of the biggest obstacles for this new plan is pleasing the pensioners of Detroit, as the Grand Bargain only accounts for 66% of what money is owed to former city employees, or 90% for ex police or fire employees.

The pension board for the city’s police and fire pension stated the following:

We believe the City of Detroit can afford much better treatment of its pension beneficiaries who dedicated years of their lives in service of the city.

Lawmakers in Detroit have warned pensioners of opposing the Grand Bargain, stating that if pension holders vote against the act, they could lose up to 70% of the money owed to them.

Despite its difficult times ahead, the city of Detroit still seems to be doing pretty well on a cultural level. Associate Director of the University’s Detroit Center Craig Regester says, “There’s a lot happening here, and there has been a lot happening in Detroit for a long time, and there continues to be, at the neighborhood level, at the arts and cultural musical level.”

via Michigan Daily News