Treasury
Secretary To Show 'Commitment' To Detroit In Visit
Send a link to a friend
[April 22, 2014]
WASHINGTON (Reuters) — Treasury
Secretary Jack Lew will visit bankrupt Detroit this week to highlight
the Obama administration's "continued commitment to the city's
revitalization and explore ways to promote job creation and economic
growth," according to an advisory his department released on Monday.
|
Lew will meet with leaders from philanthropic foundations on
Thursday to discuss economic development in the city that filed for
the largest municipal bankruptcy in U.S. history last July. Then on
Friday, he will tour a metal stamping business to promote his
department's small business credit initiative.
In a draft of its plan for restructuring $18 billion in debt and
other obligations released last week, Detroit outlined how it will
tap philanthropies for $816 million to cover pension costs and avoid
selling pieces from the Detroit Institute of Arts.
![](http://archives.lincolndailynews.com/2014/Apr/22/images/ads/current/sparks_sda.png)
President Barack Obama has not pledged direct funds to the Motor
City, but his administration and Congress are using existing federal
programs to provide aid. Last week, local media reported the state
of Michigan would send the city $100 million for blight removal from
a federal fund designed to help states cope with the foreclosure
crisis. That, in turn, would free up money to ease pension cuts for
retirees.
"We continue to provide technical advice to the city and state on a
range of topics, including efforts to leverage existing federal
funding sources for blight elimination," said a White House
official. "As we've said, there is no bailout coming from
Washington, but we continue to support the efforts by state and
local officials as they work on Detroit's revitalization."
[to top of second column] |
![](http://archives.lincolndailynews.com/2012/Sep/18/images/ads/current/demay_inv-lda081412.png)
The assistance comes as Detroit zeroes in on formulating a final
restructuring plan that can win approval from Bankruptcy Judge
Steven Rhodes.
"I have urged President Obama to examine all options for executive
action to help the city of Detroit overcome its fiscal challenges,
and I am pleased that he is seeking to take positive action," said
Representative John Conyers, a Democrat from Michigan. "I will be
discussing further legislative options with my colleagues in
Congress."
(Reporting by Lisa Lambert; editing by Tom Brown)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
![](http://archives.lincolndailynews.com/2014/Apr/22/images/ads/current/iga_sda032409.png) |