Michigan lawmakers approve $1 billion borrowing plan for Flint water settlement
LANSING, Mich. (AP) - Michigan legislators have finalized a plan to borrow $600 million to finance the state’s proposed settlement with the residents of Flint, whose water was contaminated with elevated levels of the neurotoxin lead.
The legislation received House approval on 105-3 and 104-4 votes Wednesday. It would authorize a loan from a state economic development fund, costing more than $1 billion to repay over 30 years -- or $35 million annually.
The legal settlement is believed to be the state government’s largest ever, pending approval from a federal judge. The legislation now heads to Gov. Gretchen Whitmer for her signature.
The proposed Flint water crisis settlement fund has reached a total of $641.2 million, including $20 million more from the city of Flint, $20 million from McLaren Flint Hospital and $1.2 million from Rowe Professional Services.
The Flint City Council has been debating whether to approve the city’s $20 million contribution, which would come from its insurance carriers, for more than a week. Council members are hoping to vote on the issue later this week.
A federal judge has not formally approved the settlement. No money from the settlement fund can be disbursed until the court sets up a payment procedure, which will be managed by a court-appointed official.
Copyright 2020 The Associated Press. All rights reserved.