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Mark Schauer questions Detroit bankruptcy "Grand Bargain" with state


LANSING (WKZO) -- Democratic gubernatorial candidate Mark Schauer is hammering the administration of Governor Rick Snyder over the Grand Bargain deal signed last week to help guide the city of Detroit out of bankruptcy. The deal includes almost 200 million dollars in state money for the city in exchange for some temporary financial oversight and small cuts in pensions. Schauer says that the Snyder administration engineered the deal to include those pension cuts, which he views as a violation of the Michigan constitution.

"This governor threw pensioners under the bus," Schauer said. "Now they're faced with an untenable choice that they should never have had to make in the first place whether to take a lesser cut, or a much larger cut."

The pensioners themselves still get to vote on the plan, but Schauer says they essentially have no choice but to go with it, as any other deal would likely result in bigger cuts. He says their position is "between a rock and a hard place."