Detroit's pension board is attempting to block state emergency managers from restructuring the city's finances.If the board loses its bid the state could rewrite union contracts. In March, Michigan enhanced a law that enables the state to take over local governments' finances, thus giving the state the same power as a bankruptcy court, or court-appointed receiver. Mayor Bing's plan to avoid a possible takeover of the city's finances include his budget proposal which includes $200 million in cuts in FY 2011-FY 2012 and reductions in employee benefits phased in over the next few years.
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Copyright © 2013 Manhattan Institute for Policy Research, Inc. All rights reserved.
52 Vanderbilt Avenue, New York, N.Y. 10017
phone (212) 599-7000 / fax (212) 599-3494
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