State preparing to borrow and transfer $600 million for Flint water fund
Michigan Strategic Fund selling bonds for the state’s share of the settlement fund
LANSING, Mich. (WJRT) - The state is making final preparations to borrow $600 million and transfer it to the Flint water settlement fund soon.
The money is Michigan’s share of the $641.2 million settlement for claims related to the Flint water crisis. A federal judge gave preliminary approval to the settlement earlier this year and registration for shares of the fund have been completed.
The Michigan Strategic Fund, which is part of the Michigan Economic Development Corp., approved a plan Tuesday for borrowing the $600 million by selling bonds on behalf of the state. The money will go into the Flint Water Advocacy Fund and be sent to the claims administrator working for U.S. District Court.
The bonds will be paid back over 30 years at $35 million annually, which will come out of the state budget.
“Providing relief for the people of Flint has been a top priority for me since taking office and I’m encouraged to see this step taken in the settlement process,” said Michigan Attorney General Dana Nessel. “This agreement serves as a new chapter in our state’s history—one focused on the healing process for the city of Flint, its children, and its future.”
The settlement fund currently includes $600 million from the state, $20 million from Flint’s insurers, $20 million from McLaren Flint Hospital and $1.25 million from Rowe Professional Services.
The next step for Flint residents and businesses will be formal application for a share of the settlement, which will require evidence showing they were affected by the water crisis from April 2014 to November 2015. Evidence can be as simple as showing they lived or attended school in Flint.
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