May 7 (Bloomberg) — As creditors prepare to vote on a plan to end Detroit's $18 billion bankruptcy, the city still needs help from state lawmakers to pay its obligations while avoiding a fire sale of its fine art collection.
Financially stricken Detroit must secure funding from a Republican-controlled legislature to shore up its pensions. Emergency Manager Kevyn Orr continues to try to lease Detroit's water system to generate cash to improve services that now leave residents waiting hours for buses and police on streets darkened by broken lights.
State lawmakers have yet to approve Governor Rick Snyder's plan to give $350 million over 20 years — or $195 million in a lump sum — to Detroit's employee pension systems. The money is necessary to secure an additional $466 million from private foundations and the Detroit Institute of Arts to defray pension cuts while shielding the museum's art collection from sale to pay creditors.
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