Detroit Bankruptcy-Grand Bargain

Jun 20, 2014

An effort by deep-pocketed philanthropists to save the bankrupt city of Detroit's art treasures culminated today when Michigan Governor Rick Snyder authorized $195 million in state help. 

City of Detroit
City of Detroit
Credit Wikipedia
The bill signing in Detroit was part of what's dubbed the Grand Bargain. The deal also includes $366 million from foundations and a $100 million fundraising pledge by the Detroit Institute of Arts.

Over the two-decade plan, the contributions are valued at $816 million and will help limit cuts to city retiree pensions if the restructuring plan is approved.

Retirees have until July 11 to vote on the proposal, which includes the foundation funding promises.

Kresge Foundation President Rip Rapson says the overall well-being of the city couldn't be dismissed. The Kellogg Foundation and the Ford Foundation are among those involved.