Snyder: Pensioner approval of grand bargain sets Detroit up for faster recovery
Gov. Rick Snyder is praising Detroit pensioners for approving the city's bankruptcy restructuring plan.
The so-called "grand bargain" is designed to prevent deep cuts to retirement benefits and protect city-owned artwork at the Detroit Institute of Arts.
Snyder says the vote this week makes it more likely the city will emerge from bankruptcy soon.
"I really appreciate retirees taking that positive vote because it was hard," he told reporters Tuesday at an appearance in Detroit.
"They're making sacrifices. And I really admire them and respect them for doing that. This will give them a much better solution and this was a critical step in hopefully making the bankruptcy get resolved sooner."
But Snyder admits it is far from a done deal. Other creditor groups are still opposed to the plan and are likely to fight it in court next month. That's when the trial phase of the bankruptcy begins, after which Judge Steven Rhodes will make the final decision on the restructuring plan.
The governor hopes this week's overwhelming vote in favor of the plan will make the next steps easier.
"As we go into the trial phase, which will be happening in mid-August, hopefully this will be a big encouragement to the judge to say let's wrap up the bankruptcy so we can get back to normal conditions in Detroit," he said.
Snyder says he's more confident than ever Detroit will emerge from bankruptcy this fall.