Detroit's plan to deal with $18 billion of debt so it can exit municipal bankruptcy faces a crucial test on Wednesday, when a panel of Michigan state lawmakers votes on legislation, opposed by some conservatives, to provide state funding for the city, Reuters reported yesterday. A special Michigan House committee on Detroit's Recovery and Michigan's Future began hearings last week on a package of bills authorizing a $195 million lump sum contribution by the state, and creation of an oversight commission for the city. The state's contribution is a key component of a “grand bargain” that includes $466 million pledged by philanthropic foundations and the Detroit Institute of Arts to help ease pension cuts for city retirees and avoid a sale of artwork to pay creditors.
http://www.reuters.com/article/2014/05/20/usa-detroit-bankruptcy-idUSL1…
In related news, JPMorgan Chase & Co. will invest $100 million during the next five years in Detroit, the latest effort by an outside private institution to assist the Motor City as it struggles through the nation's largest municipal bankruptcy, the Wall Street Journal reported yesterday. About half of the $100 million — a mix of loans and grants — will be used by one of the nation's largest banks to lend money for projects in targeted neighborhoods, including construction of new housing and rehabilitation of vacant and dilapidated homes mostly outside the city's central core. (Subscription required.)
http://online.wsj.com/news/articles/SB100014240527023044227045795739517…