Don't worry folks they'll just print more FRN's....
Union leaders in Detroit want $100 million in federal funding earmarked for homeowner assistance to help make up a $3.5 billion shortfall in the retirement system for city workers, The Wall Street Journal reported Wednesday.
Under the plan being discussed by federal and state officials, Michigan would give Detroit $100 million earmarked for the state from a U.S. Treasury Department fund established in 2010 to provide relief to struggling homeowners in the wake of the housing crisis, according to the report.
Officials familiar with the discussions told The Wall Street Journal that Detroit emergency manager Kevyn Orr could use the unspent funding earmarked for blight elimination to help reduce pension cuts for city employees.
The Obama administration previously announced nearly $300 million in federal and private funding for Detroit, largely drawn from existing resources. The city filed for bankruptcy last July, citing $18 billion in unmanageable long-term liabilities.
"There is no bailout coming from Washington, but we continue to support the efforts by state and local officials as they work on Detroit's revitalization," the White House said in a statement Wednesday.
Under the proposed deal for federal money, many officials at the local and state level in Michigan would need to agree with transferring $100 million to free up additional money for the pension system, The Wall Street Journal reported.
Full story: http://www.foxnews.com/politics/2014...-pension-deal/