Michigan Governor Signs Bill Giving Local Governments Fiscal Options

Michigan Governor Rick Snyder signed into law on Thursday a bill that gives options to cities and school districts for dealing with severe financial problems, including bankruptcy.
December 28, 2012
 

Michigan Governor Rick Snyder signed into law on Thursday a bill that gives options to cities and school districts for dealing with severe financial problems, including bankruptcy.

The law, passed by the Republican-controlled legislature earlier this month, allows local elected officials to choose between Chapter 9 municipal bankruptcy, if the move is approved by the governor; an emergency manager; arbitration with a neutral party; or a consent agreement laying out terms for fixing the government's finances.

It replaces a controversial law repealed by Michigan voters on November 6 that made it easier for the state to intervene in fiscally troubled cities and schools and gave state-appointed emergency managers running the governments the power to suspend collective bargaining agreements with workers.

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