The organization, formed to fight big government and spending, is contacting 90,000 conservatives in Michigan and encouraging them to rally against a plan to provide $195 million in state money to help settle Detroit pension holders' claims in the case, a key element of the deal.
The group has threatened to run ads against members of the Republican-controlled Legislature who vote in favor of the appropriation before the state's August primary. An initial legislative vote may come this week.
Using public money for Detroit's case "is very toxic, especially to out-state and Republican, conservative-leaning individuals," said Scott Hagerstrom, director of the Americans for Prosperity's chapter in the state. "Even out-state Democrats, why send any more money to Detroit? Certainly other areas of the state have needs."
The group's move is a blow to Republican Gov. Rick Snyder, who proposed the state cash as a final ingredient to bring the 10-month-long bankruptcy case to a conclusion. Some creditors are fighting the "grand bargain," but it recently drew support from major retiree groups and unions. The bankruptcy court trial on the city's case will be held this summer.
"This is a settlement. This not a bailout," Snyder said. "And I want to be very, very clear about that."
