LANSING, Mich. (AP) - LANSING, Mich. (AP) — Michigan lawmakers plan to take an initial step toward helping bankrupt Detroit by committing $195 million in state money to protect city retirees from steep pension cuts.
A legislative committee is expected to change the bankruptcy legislation before approving it Wednesday. The panel's chairman, Republican Rep. John Walsh of Livonia, says one revision makes room for a city council designee on a board that would review Detroit's budgeting.
Another change gives the oversight committee dominated by state appointees flexibility to not approve all city contracts above $750,000. Another change forces the oversight board to go dormant if Detroit continually makes sound financial decisions.
Walsh tells The Associated Press he feels good about the committee's bipartisan work, but "we're going to have our hands full" gaining support in the Republican-led House.