Skip Navigation
Attorney General Bill SchuetteMichigan.gov
Michigan.gov Home
close print view

Schuette: Constitutional Protections Must Be Maintained During Detroit's Bankruptcy

Contact: Joy Yearout 517-373-8060

August 19, 2013 

 

LANSING - Attorney General Bill Schuette today filed a 20-page Statement Regarding the Michigan Constitution and the Bankruptcy of the City of Detroit in U.S. Bankruptcy Court arguing that as the City of Detroit develops its bankruptcy plan, it must abide by the protections enshrined in the Michigan Constitution.

"No reasonable person can disagree that the City of Detroit is bankrupt and that federal bankruptcy proceedings under the leadership of Emergency Manager Kevyn Orr is the only aveune to rebuild the Motor City.  However, throughout this bankruptcy process, protections enshrined in the Michigan Constitution by the citizens of our state must be honored, respected and followed," said Schuette. 

Schuette emphasized that Article 9, Section 24 unequivocally provides that:

 The accrued financial benefits of each pension plan and retirement system of the state and its political subdivisions shall be a contractual obligation thereof which shall not be diminished or impaired thereby.  Financial benefits arising on account of service rendered in each fiscal year shall be funded during that year and such funding shall not be used for financing unfunded accrued liabilities.

 

Schuette continued,  "With Article 9, Section 24 of the state constitution, the People of Michigan approved crystal clear protections for retirees living on fixed incomes.  We all have a duty to uphold those protections, ensuring vulnerable pensioners do not fall victim to a financial crisis they did not create."

In his statement, Schuette argues the City has a duty to protect pensioners:

"According to the Detroit General Retirement System, general City workers like librarians and sanitation workers receive an average payment of roughly $18,000 per year.  For retired City police and firefighters, the figure is roughly $30,000 per year, and without the benefit of Social Security payments.  These retirees are among Michigan's most vulnerable citizens. The People of Michigan recognized as much and sought to protect them when enacting article IX, 24. Accordingly, the City of Detroit is constitutionally obligated to keep the People's promise as it proposes a plan that will allow the City to flourish while honoring the lifelong commitment of Detroit's retired public servants." (p. 4)

 

With this filing, Schuette informed the Court of his legal positions, and he stands ready to offer additional arguments and support on behalf of the Constitution and pensioners at successive stages of this important proceeding. 

[Click here to view a copy of Attorney General Bill Schuette's Statement Regarding the Michigan Constitution and the Bankruptcy of the City of Detroit]

 

-30-

 

 

 

Related Content
 •  Schuette Files Felony Charges Against Southeast Michigan Man for Soliciting a Minor for Sex Using Facebook
 •  Schuette Files Felony Embezzlement Charges Against Northern Michigan Funeral Home Owner
 •  Schuette: Beware Computer Ransomware Scams
 •  Schuette: Avoid Falling Victim to Foreclosure Rescue Scams
 •  Schuette Statement on Governor Snyder's Appointment of Tom Cameron to Wayne County's 3rd Circuit Court
 •  Schuette, Arwood Announce $100,000 Fine, Permanent Surrender of License for South Lyon Pharmacy Connected to Tainted Drugs Distributed in 2013
 •  Seniors: Protect Yourselves from Victimization, Financial Exploitation
 •  Schuette: Remember the Victims When Considering the Cost of Crime in Michigan
 •  Schuette Moves to Expedite Appeal of Ruling on the Michigan Marriage Amendment
 •  Schuette Issues Charges Against Detroit Man For Swindling Thousands in Fake Mortgage Assistance Scheme
 •  Schuette: Federal Asian Carp Report Flawed, Incomplete, Lacks Action Plan
 •  Schuette Statement on Representative Dave Camp's Decision Not to Seek Re-Election
 •  Schuette: Veterans Shouldn't Pay Building Inspector Fees
 •  Schuette Commends House for Passage of Victim Centered Human Trafficking Bills
 •  Schuette Seeks Emergency Stay, Appeal of Federal Court Ruling Striking Down Marriage Amendment to Michigan Constitution
 •  Schuette Issues Subpoenas in Probe Of Propane Industry
 •  Schuette Announces Felony Charges in Illegal Sports Betting Ring in Southeast MI
 •  Schuette Secures $114,542 for Victims of Mortgage Rescue Fraud
 •  Schuette Announces Conviction of Bay City Woman for Scamming Seniors Out of Millions
 •  Schuette: Modest Improvement But Fundraisers Still Take Too Much From Charities
QR code

Michigan.gov Home
PoliciesMichigan NewsMichigan.gov Survey


Copyright © 2001-2014 State of Michigan