Detroit has long been in the economic doldrums. As a former powerhouse of automotive production, Detroit now has approximately 27 jobs per every 100 people, whereas other American cities, such as Philadelphia, have 35 jobs per every 100 people or more. It is a city where only 12% of the population has a bachelor's degree, and 20% don't even have a high school diploma.
Now, Michigan Governor Rick Snyder has signed a bill, entitled the Grand Bargain, which would release state funds to aid the ailing city. $194.8 million of state aid and $466 million from private donations, including funds from the Detroit Institute of Arts, Kresge, the Kellogg Foundation, and the Ford Foundation, will go to save the broken pension system, which is set to see a 27% cut in benefits. The money is contingent on a vote by city employees and pensioners, and should it be successful, cuts will instead be limited to 4.5%.
The money would stop bond insurers and lenders from absconding with and selling off valuable art owned by the city located in the Detroit Institute of Arts, such as paintings by Van Gogh, Monet, Degas, and Rembrandt, all of which is valued at over $900 million.
The paintings will go into a charitable trust.
Not all city employees and pensioners agree with the bill, however; some have expressed extreme doubt that the bill is about saving the pensions, and is instead about saving the artwork. The bill itself would strip pensioners of some of their rights, such as the right to fight against cuts, which has understandably incensed the community.
The deal is set to expand over the course of a decade, meaning those in the twilight years of their careers in Detroit will be dependent on this bill being approved. Should it not be approved, many are worried that pensioners may run the risk of extreme poverty or, in certain cases, homelessness.
Shirley Lightsley, president of the Detroit Retired City Employees Association, has stated that a vote 'yes' is the only logical decision for the city's retirees.
"Even now, we are not happy to give up some of our promised benefits and legal rights," she said on stage with Governor Snyder, "but it's now time to use wisdom and discernment we all have. I now know that the only way to vote is yes. When you look at a 4.5% reduction versus 27%, just look at the money."
This article is copyrighted by Travelers Today, the travel news leader
