Foundations Aim to Save Pensions in Detroit Crisis
Source: NY Times
By RANDY KENNEDY, MONICA DAVEY and STEVEN YACCINO
National and local philanthropic foundations have committed $330 million toward a deal to avoid cuts to Detroit retirees’ pensions and to save the Detroit Institute of Arts’ renowned collection, federal mediators involved in the city’s bankruptcy proceedings announced on Monday.
The plan was a first both in the foundation world, which has not been a source of money to shore up public-sector pensions in the past, and in municipal bankruptcy cases, experts said. It also offered the first indication of progress in the intense mediation with Detroit’s creditors to resolve the city’s financial crisis. Those talks have been proceeding under strict secrecy guidelines.
Related Coverage
Nine foundations, many with ties to Michigan — including the Ford Foundation, the Kresge Foundation and the John S. and James L. Knight Foundation — have pledged to pool the $330 million, which would essentially relieve the city-owned Detroit Institute of Arts museum of its responsibility to sell some of its collection to help Detroit pay its $18 billion in debts. In particular, the foundation money would help reduce a portion of the city’s obligations to retirees, whose pensions are at risk of being reduced in the bankruptcy proceedings. By some estimates, the city’s pensions are underfunded by $3.5 billion.
As part of the plan, which negotiators have been working on quietly for more than two months, the museum would be transferred from city ownership to the control of a nonprofit, which would protect it from future municipal financial threats. The foundations would stipulate that Detroit must put the money into its pension system, said Alberto Ibargüen, president of the Knight Foundation.
FULL story at link.
Read more: http://www.nytimes.com/2014/01/14/us/300-million-pledged-to-save-detroits-art-collection.html?partner=EXCITE&ei=5043&_r=0
slideshow
Photographs: Christie’s Appraises Detroit Institute ArtworksDEC. 19, 2013
“The Wedding Dance,” at Detroit Institute of Art, was valued at $200 million.
A Bruegel, a Rembrandt, a van Gogh: Appraisal Puts Prices on the Priceless in DetroitDEC. 19, 2013
A Diego Rivera mural at the Detroit Institute of Arts. Part of the collection may be auctioned off.
Fate of Detroit’s Art Hangs in the BalanceDEC. 3, 2013
“The Wedding Dance,” at the Detroit Institute of Arts, was valued at $100 million to $200 million. Fabrizio Costantini for The New York Times
= new reply since forum marked as read
that GREED & PUBLIC/PRIVATIZATION of all has somehow been turned around.
We shall see...but, thanks for posting what "on it's face" seems a hopeful thing that the Pensioners of Detroit can be saved and if this happens elsewhere in strapped cities, going forward....then an example has been set for those who have money to give to those who worked and face their foundations jerked out from under them by Wall Street Greed and Unsophisticated Pension Managers seeking yield as Wall Street gouged America and brought down our Financial System.
It's truly such good news...if there isn't some catch lurking.
This, along with "The Nut Gatherers" and the Diego Rivera mural are 3 of my favorite pieces.
I really hope they can stay at the D.I.A.
