Mich. Pledges $350-Million to Detroit Bankruptcy Rescue

Michigan Gov. Rick Snyder announced plans Wednesday to contribute $350-million in state money toward achieving a deal to resolve Detroit’s bankruptcy that protects the city art museum’s prized collection, doubling the rescue fund launched by major philanthropies earlier this month, the Detroit Free Press reports.

The governor’s pledge must still win approval from a legislature that has been wary of anything resembling a bailout of the bankrupt city. Like the $330-million committed by the Ford, Kresge, and other foundations, the state money would be used to buttress city pensions and avert a sell-off of masterpieces from the Detroit Institute of Arts to satisfy creditors.

The foundation funding hinges on the city-owned institute being turned into a nonprofit institution, while state leaders are seeking guarantees that the museum will also contribute to the rescue pot. Citing sources close to continuing talks, the Free Press says the state wants $100-million over 20 years from the museum, but officials there consider that target unfeasible.

The museum said in a statement that it would make a “significant contribution” to the rescue effort. It currently receives about $12-million a year in donations and has committed to raising $200-million by 2022 for its endowment.

Read a Chronicle of Philanthropy opinion column by the leaders of the Ford, Knight, and Kresge foundations and the Community Foundation for Southeast Michigan on their decision to fund the Detroit rescue plan.