LANSING – The Michigan House approved a package of bills by huge margins on Thursday allowing $194.8 million from the Budget Stabilization Fund to go toward the “Grand Bargain” designed to get Detroit out of bankruptcy and alleviate cuts to pensioners.
Representatives were so supportive of the package that the chamber erupted in applause after the 11th bill in the package passed.
Several foundations have offered to put up about $365 million as part of the Grand Bargain, and the Detroit Institute of Arts has committed $100 million. Some unions also have committed to helping in some capacity.
HB 5571 , the first bill to pass, heard the most opposition. It would prohibit the Detroit Institute of Arts from renewing its 2012 millage, approved by voters in Wayne, Oakland and Macomb counties, when it expires. The measure passed 66-44.
All Republicans voted yes on the bill joined by Democrats Rep. Theresa Abed of Grand Ledge, Rep. Winnie Brinks of Grand Rapids, Rep. Scott Dianda of Calumet, Rep. John Kivela of Marquette, Rep. Collene Lamonte of Montague and Rep. David Nathan of Detroit. Rep. John Olumba (I-Detroit) also voted yes.
Some House Democrats said the bill had nothing to do with the Grand Bargain. Rep. Jon Switalski (D-Warren) said the bill is telling voters in Wayne, Oakland and Macomb counties they are not “intelligent enough” to make the decision on the millage.
Rep. Sam Singh (D-East Lansing) offered an amendment to strip language from the bill prohibiting the DIA from renewing its millage, but it was defeated.
Governor Rick Snyder said at a news conference in his Capitol office that the entire package was good policy, but he wouldn’t comment on if he would veto HB 5571 or if he thought it disrupted the Grand Bargain. He was joined at the conference by Rep. John Walsh (R-Livonia), Rep. Thomas Stallworth III (D-Detroit, House Speaker Jase Bolger (R-Marshall) and House Minority Leader Tim Greimel (D-Auburn Hills).
Bolger said the bill does not undermine the voters and it does not disrupt the Grand Bargain.
“We have representatives who say that if my taxpayers are going to contribute to this settlement, and the result would be the independence of the DIA, then it’s reasonable for the relief they should see that that 10-year promise is upheld,” Bolger said.
Snyder praised the work that was done on the bills and thanked all who were involved, including Walsh, who chaired the House committee that took up the bills and spearheaded the issue. Snyder also thanked Stallworth, Detroit Mayor Mike Duggan and Emergency Manager Kevyn Orr.
“This is truly a bipartisan, team effort that wasn’t about politics,” Snyder said. “It’s about doing the right thing for all of the citizens in the state of Michigan. I am very proud of the effort.”
All 11 bills will now go to the Senate for consideration. Snyder said he hopes the Senate acts quickly on the package, but said it is their prerogative whether they do so or not.
Snyder also said having the package passed would help current retirees who will vote on whether to approve the Plan of Adjustment that includes the state funds.
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