- Associated Press - Monday, January 27, 2014

DETROIT (AP) - Michigan Attorney General Bill Schuette is urging a federal appeals court to immediately jump into Detroit’s bankruptcy and consider whether pensions can be cut.

In a court filing Monday, Schuette backs the bankruptcy case but says he strongly believes reducing pensions would violate the Michigan Constitution.

Federal Bankruptcy Judge Steven Rhodes says pensions are like any other contract that can be broken as Detroit develops a plan to deal with $18 billion in debt. Foundations have pledged more than $300 million to patch up pension funds and prevent the sale of art. Gov. Rick Snyder is trying to win approval for millions more in state aid.

Nonetheless, Detroit retirees still would suffer a hit.

An appeals court is considering whether to grant an immediate appeal or wait.


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