The saga in Detroit could be coming to an end as long as several key factors align in the courts. After months of collaborative planning and financial restructuring efforts between bankruptcy lawyers and financial experts, State Legislature and numerous private organizations have bestowed their blessing to the bankruptcy plan that provides Detroit with $18 billion to revitalize the city. Now, the decision lies in the hands of the city: its employees and retirees.
The People of Detroit
In addition to taking a pay cut for the city, employees and retirees also have to promise not to take legal action against the city. While this might sound like a bad deal, agreeing not to sue the city of Detroit will actually lessen the amount of pension cuts.
In April, the city was able to make deals with retired police offices and firefighters who agreed to take the monthly pension cuts of 4.5% and sacrificed cost-of-living payments in favor of the $18 billion bankruptcy settlement. Hopefully, the outstanding ballots will be returned marked “yes” in favor of instituting these types of pension cuts across the city.
Detroit: Looking Forward
Bankruptcy lawyer and emergency manager of Detroit, Kevyn Orr, called the people of Detroit to action by saying, “We’ve got to get the vote in. I need every vote of every retiree and every active employee, safety and non-safety, to vote ‘yes.'”
The city of Detroit will hopefully be in luck. The people have proven to be resilient throughout the entire bankruptcy and financial restructuring process, so if they continue in their normal routine, they will support their city and take the pension cuts in return.
