The city that President Obama was credited with “saving” – before it turned out that he hadn’t – is getting a little help from Washington as it struggles through the largest municipal bankruptcy in American history.
As reported by Reuters:
Michigan officials and President Barack Obama'sAdministration are discussing a plan to free up $100 million in federal money to aid Detroit's retired city workers, the Detroit Free Press reported on Tuesday.
Citing two people familiar with the talks, the newspaper said the talks were centered around federal money flowing to Michigan for blight removal. Under the plan, $100 million would be earmarked for Detroit, reducing the $500 million the city's emergency manager, Kevyn Orr, plans to use to eliminate blight over the next 10 years.
The $100 million saved could then be used by Orr to ease pension cuts for retirees under the city's plan to adjust its $18 billion of debt and exit the biggest municipal bankruptcy in U.S. history, according to the report.
It isn’t much money, measured against how prosperous the Motor City once was and how deep the hole now is, after years of corrupt, one-party rule.
But you have to start somewhere.Washington looks after its friends and figures, no doubt, that taxpayers a generation from now will understand and be good for the money.
And, anyway, they’ll have no choice.