Michigan's governor proposed Wednesday that the state provide up to $350 million to help Detroit exit bankruptcy and protect city pensions.
"This is not a bailout of paying the debts directly of the city of Detroit. This is not a bailout of banks and other creditors," said Governor Rick Snyder, who was joined at a press conference by top lawmakers. "This is focused on helping reduce and mitigate the impact on retirees."
In the wake of the city's bankruptcy, employees and retirees face the possibility of deep cuts in promised pension benefits and health care coverage. At the time of the filing in July, the city had about $11.5 billion in unsecured liabilities.
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