The city filed an updated Plan of Adjustment this week, and it reflects the myriad happenings since the previous version was entered into the court record in early May:
The Michigan Legislature passed and Gov. Rick Snyder signed a package of bills providing $195 million for pension funding as well as oversight of the city’s finances. Part of the so-called “Grand Bargain,” the arrangement also protects the collection of the Detroit Institute of Arts from sale and creates a new, separate entity to operate the museum.
Creditors, including 32,000 pensioners had a chance to vote on the plan. About half the pensioners eligible returned their ballots, overwhelmingly approving cuts to their pension payments, cost-of-living increases and health care benefits and waiving current and future suits involving the Michigan Constitution’s provision protecting pensions and PA 436, the emergency manager law.
The city has reached agreements with several creditors, and how those affect ongoing city operations are outlined, to some extent.
Below is the “red-lined” version of the latest Plan of Adjustment, showing changes from the previous version. Judge Steven Rhodes will consider the plan at the confirmation hearing, now scheduled to begin Aug. 21.