Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

After Bankruptcy a 'Grand Bargain' Will Help Detroit to Rise Again

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

After Bankruptcy a 'Grand Bargain' Will Help Detroit to Rise Again

Article excerpt

A bipartisan coalition of politicians, philanthropists and civic- minded citizens has given Detroit a new chance - if the city can make it work. As Pittsburgh leaders wrestle with their own fiscal challenges, the near-death experience of Detroit is a cautionary tale for all U.S. cities.

Last week, U.S. Bankruptcy Judge Steven Rhodes accepted the "plan of adjustment" proposed by Detroit's emergency manager, Kevyn Orr, ending the city's bankruptcy battle more than a year after it began. Many allies of the city were responsible for that result.

Michigan Gov. Rick Snyder persuaded his fellow Republicans in the Legislature to invest $195 million in a "grand bargain" that helped shore up municipal pensions and preserve the Detroit Institute of Arts' treasures. City workers and retirees voted to give up part of their pensions and cost-of-living increases to help save the city.

Mr. Orr got the city's biggest creditors to accept far less than they were owed - albeit in some cases in return for some of the city's most desirable real estate. …

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