A judge still must hold a trial to determine if Detroit’s overall bankruptcy plan is fair and feasible, but support from retirees is vital.
The pledges bring the Detroit Institute of Arts to almost 80 percent of its grand bargain goal.
A major announcement is expected in a deal that promises millions of dollars to support municipal retiree pensions while protecting city-owned artwork from possible sale as part of Detroit’s bankruptcy.
Thousands of Detroit retirees and city employees must have their ballots on the city’s plan of adjustment in the bankruptcy case turned in this week.
Retirees supporting the plan used the bill-signing ceremony to urge pensioners to vote yes on the deal.
The governor, in Detroit Friday, has signed legislation committing $195 million to help push the city through bankruptcy and protect pensions.
Of the $26 million, $10 million will come from Ford Motor Co., $6 million from Chrysler Group LLC, $5 million from General Motors Co. and $5 million from the General Motors Foundation.
Some creditors want Detroit to sell the art to help settle the city’s debt.
Senator Coleman Young is one of two lawmakers who voted against the package.
Michigan’s Senate has approved spending $195 million to help shore up Detroit’s pension funds, a key legislative step in a deal designed to end the largest public bankruptcy in U.S. history.