Flint water settlement borrowing plan approved by lawmakers

Flint water settlement borrowing plan approved by lawmakers
December 17, 2020 The Associated Press

LANSING, Mich. (AP) — Michigan legislators on Wednesday 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 and will be signed by Democratic Gov. Gretchen Whitmer. It would authorize a loan from a state economic development fund, costing more than $1 billion to repay over 30 years — $35 million annually. The legal settlement is believed to be the state government’s largest ever, 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.

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 manager following Republican then-Gov. Rick Snyder’s declaration of a financial emergency. 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 were detected in children, and at least 12 people died in a Legionnaires’ disease outbreak that experts suspected was linked to the improperly treated water.

“A settlement does not turn back the clock and it does not right these grave wrongs. No amount of money can do that,” said one of the bill sponsors, Senate Democratic Leader Jim Ananich of Flint. “However, it is a powerful acknowledgment of the real harm done to us. … I am glad and relieved to see this bill cross the finish line in the Legislature, and I expect the governor to take swift action when it reaches her desk.”


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Catch up on more Flint news on Great Lakes Now:

Michigan will borrow $600M for Flint water settlement

What should justice look like for Flint after the water crisis? Residents weigh in

How does a $641 million Flint water settlement get to residents? Attorneys give answers

Flint water lawsuit settlement now totals about $641 million

Judge: Flint must check water lines in newer neighborhoods

Court: Flint class-action can proceed over lead in water

Featured image: In this March 21, 2016, file photo, the Flint Water Plant water tower is seen in Flint, Mich. (AP Photo/Carlos Osorio, File)


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