In the increasingly likely event that Michigan Forward and Stand Up For Democracy secure enough petition signatures for the referendum to repeal Public Act 4, the law immediately goes on hold. This leaves the question “what now?” Will the previous law go back into effect or, because PA 4 replaced that law, will there simply be no law allowing for Emergency Managers for nearly-bankrupt cities?
Yesterday, in what they are calling a move to allow for a “soft landing” for cities and school districts after the departure of an Emergency Manger (EM), Senate Republicans passed SB 865. As I have written before, this bill has the following features:
The bill would create a new act to do the following, with respect to a local government (a municipal government or a school district) for which an emergency manager had been appointed under the Local Government and School District Financial Accountability Act:
- Authorize the Governor to remove the local government from receivership or appoint a receivership transition advisory board, if the local government’s financial emergency had been rectified.
…