Gov. Rick Snyder addresses the media during a press conference, Jan. 22, 2014, at The George W. Romney Building, 111 South Capitol Ave., in Lansing. Snyder addressed the decision to work with state legislature to allocate funds to assist in saving retiree pensions and to keep the city of Detroit on a path to revitalization. Danyelle Morrow/The State News
—LANSING – Gov. Rick Snyder, Senate Majority Leader Randy Richardville and House Speaker Jase Bolger announced this afternoon that state officials are working toward a plan to protect Detroit retiree pensions.
The proposal involves the allocation of $350 million over the next 20 years to be combined with funds raised by private Michigan foundations to assist in saving the pensions.
“Detroit pensioners live all across Michigan and the future of Detroit impacts our entire state,” Richardville said.
Snyder suggested part of the funds could come from the revenues of tobacco settlements, according to a press release.
“We are working on a fiscally sound mediation solution with clear conditions. We will not participate in a bailout, nor allow these funds to go anywhere other than directly to retiree pensions,” Snyder said.
“I won’t cut off taxpayers’ noses to spite Detroit’s face, but I also will not ask the state’s taxpayers to make a bad investment. That’s why we must look at how we can work together to move Detroit out of bankruptcy as quickly as possible,” Bolger said.
Snyder, Richardville and Bolger all pledged at the conference to work with the Michigan legislature to reach a settlement quickly.
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