x

Economy

Michigan Will Borrow $600M for Flint Water Settlement

December 9, 2020

LANSING, Mich. — Michigan lawmakers on Wednesday planned to begin swiftly passing a plan to borrow $600 million to fund the state's proposed settlement with the residents of Flint, who sued after their municipal water supply was contaminated with elevated levels of lead for 18 months.

Under the bipartisan legislation, the loan from a state economic development fund would cost more than $1 billion to repay over 30 years — $35 million annually. It is believed to be the state government's largest-ever legal settlement, pending approval from a federal judge.

Other defendants contributing to the $641 million deal include the city of Flint and McLaren Flint Hospital, which each will pay $20 million, and Rowe Professional Services Co., an environmental consulting company that will pay $1.25 million.

"We all determined together that that was the quickest way to get the money to be available for the families and to fulfill the settlement requirements," said Senate Minority Leader Jim Ananich, a Flint Democrat who is sponsoring one bill. The mechanism, he said, will avoid a large drawdown from Michigan's savings account, known as the "rainy day" fund.

Flint switched its drinking water source in 2014 from Detroit's system to the Flint River in a money-saving move while under supervision of a state financial manager. City workers followed state environmental officials' advice not to use anti-corrosive additives. Without those treatments, water from the river scraped lead from aging pipes and fixtures, contaminating tap water.

Elevated levels of lead, a neurotoxin, were detected in children, and 12 people died in a Legionnaires' disease outbreak that experts suspect was linked to the improperly treated water.

Officials said this week that Flint has taken important steps toward resolving the crisis, such as replacing more than 9,700 lead service lines.

RELATED

LONDON — Tesla CEO Elon Musk says his deal to buy Twitter can't move forward unless the company shows public proof that less than 5% of the accounts on the social media platform are fake or spam.

Top Stories

General News

FALMOUTH, MA – The police in Falmouth have identified the victim in an accident involving a car plunging into the ocean on February 20, NBC10 Boston reported.

General News

NEW YORK – Meropi Kyriacou, the new Principal of The Cathedral School in Manhattan, was honored as The National Herald’s Educator of the Year.

General News

PHILADELPHIA – The Federation of Hellenic Societies of Philadelphia and Greater Delaware Valley announced that the Evzones, the Presidential Guard of Greece will be participating in the Philadelphia Greek Independence Day Parade on March 20.

Video

Mitsotakis Meets with Biden at the White House (Video)

WASHINGTON, DC – Greek Prime Minister Kyriakos Mitsotakis met with US President Joe Biden at the White House on Monday, in the first day of an official two-day visit to the American capital.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. abc@xyz.com

You may unsubscribe at any time using the link in our newsletter.