Tag Archives: finanial martial law

Michigan declares ‘Financial Martial Law’

Under the law whole cities or school districts could be eliminated without any public participation or oversight, and amendments designed to provide minimal safeguards and public involvement were voted down.

By Elspeth Reeve
National Journal

Michigan’s legislature has passed a bill declaring “financial martial law,” as one legislator put it, which allows the state to appoint emergency managers who can break union contracts in school districts and cities having money trouble, Politico‘s Jennifer Epstein reports. The bill’s sponsor, Rep. Al Pscholka, says the hope is that financial managers can stage an intervention before municipalities are so underwater there are few options to balance the books. The managers will also have the power to nullify elected councils and boards, or dissolve whole cities or school districts without a public vote. Gov. Rick Snyder will likely sign the bill soon.

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