Michigan Governor Rick Snyder defended Detroit's bankruptcy filing on Monday, stating in court that he followed the state and federal constitutions while addressing fiscal issues that had built up in Detroit for more than half a century, Reuters reported yesterday. Snyder said that the Michigan and U.S. constitutions do not prevent actions that he took, even though the Michigan constitution prohibits diminishing pension payments to retired employees. Detroit's emergency manager, Kevyn Orr, has indicated that cuts to pension benefits would be part of a Detroit bankruptcy restructuring plan. Unions, pension funds and retirees are opposing Detroit's bankruptcy petition, and Bankruptcy Judge Steven Rhodes will rule on Detroit's eligibility after a multi-day proceeding expected to last into next week.
