LANSING — On Tuesday, the Michigan Senate passed a package of bills that includes state money to aid Detroit retirees, a key element in the city’s plan to adjust its debt and exit the biggest municipal bankruptcy in U.S. history.

The action by the republican-controlled Senate sends the nine bills to Gov. Snyder, who has pushed lawmakers for state money for Michigan’s biggest city. The measures won approval from the republican-controlled House of Representatives on May 22.

Under the so-called grand bargain in Detroit’s debt adjustment plan, Michigan’s nearly $195 million lump sum contribution, along with $466 million pledged over 20 years by philanthropic foundations and the Detroit Institute of Arts, would be used to ease pension cuts for city retirees. The deal would also protect city-owned works of art from being sold to raise money to pay city creditors; and includes commitments from two unions to raise money for retiree healthcare costs.

“People around the world know of our largest city’s proud past as well as the struggles of its difficult but necessary bankruptcy,” Snyder said. “May this proposed settlement now cast Detroit forever as an example of a community and a state pulling together and making tough decisions to create a brighter future.

“…We saw lawmakers from across the state stepping up to approve legislation that helps Detroiters – and all Michiganders. This settlement plan will allow Detroit to build a solid fiscal foundation for its continuing comeback. The bipartisan package shows the commitment of our partners in the Legislature to assist Detroit pensioners, ultimately save taxpayers millions of dollars and improve the quality of life for the city’s 700,000 residents.”