[quote=harvey]I don’t see anywhere where it says the state has any obligation to pay Detroit’s debts.
If it were just a question of the state cutting the check vs. the city, I don’t think the creditors and pensioners would be as concerned as they appear to be.[/quote]
Michigan constitution has an awkwardly worded section:
§ 24 Public pension plans and retirement systems, obligation.
Sec. 24. 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.
This can be read to mean that pensions of political subdivisions {cities} are an obligation of the state. I’d be lying if I said this is clearly what it says. But neither do I think that it’s clear that it says something different.
