Legislation Introduced Ending State Oversight of Detroit

Liz Gullett

May 20, 2022

Senator Sylvia Santana (D-Detroit) introduced legislation to end the state’s oversight of Detroit, eight years after the “Grand Bargain” was signed. Under the 2014 agreement, the state provided the city $195 million to ease its way out of federal bankruptcy court, in return the state was given a nine-member commission to provide oversight of the city’s finances for 20 years, ending in 2034. The bill would end the state oversight after eight years and repeal other measures put on the city under the agreement, including:

- Repeal the Michigan Financial Commission Review Act
- Repeal the Michigan Settlement Administration Authority Act
- Repeal the position of chief financial officer on Detroit’s financial commission
- End the population threshold exclusion specific to Detroit regarding opting out of employer-provided health care for public employees
- Modify the restrictions placed on public pensions

The bill package has been referred to the Senate Appropriations Committee for consideration.

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