The cash infusion by the federal government is actually going to help the city pay pensions, even though they’re playing a kind of shell game with the money.

As for “blight removal,” perhaps they could start with city hall.

Reuters:

Michigan officials and President Barack Obama’s Administration are discussing a plan to free up $100 million in federal money to aid Detroit’s retired city workers, the Detroit Free Press reported on Tuesday.

Citing two people familiar with the talks, the newspaper said the talks were centered around federal money flowing to Michigan for blight removal. Under the plan, $100 million would be earmarked for Detroit, reducing the $500 million the city’s emergency manager, Kevyn Orr, plans to use to eliminate blight over the next 10 years.

The $100 million saved could then be used by Orr to ease pension cuts for retirees under the city’s plan to adjust its $18 billion of debt and exit the biggest municipal bankruptcy in U.S. history, according to the report.

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