Breaking News Emails

Get breaking news alerts and special reports. The news and stories that matter, delivered weekday mornings.
 / Updated 

Michigan Gov. Rick Snyder on Wednesday proposed investing $350 million over 20 years as part of a broader settlement in the Detroit bankruptcy case to protect the pensions of city retirees as well as the city-owned art collection at the Detroit Institute of Arts.

Michigan Gov. Rick Snyder proposed an aid package to protect Detroit's pension funds. Detroit filed the largest Chapter 9 municipal bankruptcy case in U.S. history.JOSHUA LOTT / Reuters

The settlement should go to retirees, and require independent management of pensions, he said at a news conference announcing the plan.

"The answer to our long-term situation is a thriving Detroit .... That's going to help every corner of Michigan," he said.

The settlement would be funded by tobacco settlement funds or a similar source, not tax revenue, Snyder said.

The announcement follows word last week that a group of private foundations has pledged more than $330 million to rescue the city.

With Detroit sinking under more than $18 billion of debt and liabilities, its state-appointed emergency manager Kevyn Orr filed the biggest Chapter 9 municipal bankruptcy in U.S. history in July.