Koch Brothers Group Prepares to Fight Detroit Deal
Source: Associated Press
Koch Brothers Group Prepares to Fight Detroit Deal
LANSING, Mich. May 20, 2014 (AP)
By DAVID EGGERT Associated Press
Americans for Prosperity, the conservative advocacy group supported by the Koch brothers, has launched an effort to torpedo a proposed settlement in the Detroit bankruptcy case, potentially complicating chances for completing the deal just as its prospects seemed to be improving.
The organization, formed to fight big government and spending, is contacting 90,000 conservatives in Michigan and encouraging them to rally against a plan to provide $195 million in state money to help settle Detroit pension holders' claims in the case, a key element of the deal.
The group has threatened to run ads against members of the Republican-controlled Legislature who vote in favor of the appropriation before the state's August primary. An initial legislative vote may come this week.
Using public money for Detroit's case "is very toxic, especially to out-state and Republican, conservative-leaning individuals," said Scott Hagerstrom, director of the Americans for Prosperity's chapter in the state. "Even out-state Democrats, why send any more money to Detroit? Certainly other areas of the state have needs."
The group's move is a blow to Republican Gov. Rick Snyder, who proposed the state cash as a final ingredient to bring the 10-month-long bankruptcy case to a conclusion. Some creditors are fighting the "grand bargain," but it recently drew support from major retiree groups and unions. The bankruptcy court trial on the city's case will be held this summer.
Read more: http://abcnews.go.com/US/wireStory/koch-brothers-group-prepares-fight-detroit-deal-23789408
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