State Evaluates How Many Districts Need Emergency Financial Managers
LANSING (WWJ) – Now that Michigan has the controversial emergency financial manager bill to keep cities and schools out of bankruptcy, the guessing begins as to which districts may be getting this law applied to them.
Under the new law, emergency financial managers will be appointed by the state, with Governor Rick Snyder’s approval, to take control of struggling municipalities and school districts.
The Governor said the bills will let the state offer help earlier when governments are in financial distress, instead of having to wait until they are on the brink of bankruptcy.
Prior to the bill getting passed, only Pontiac, Benton Harbor, Ecorse and the Detroit Public Schools had state-appointed emergency financial managers in place.
Now that the bill has passed, many are wondering how many schools facing bankruptcies are going to have this law applied to their districts.
WWJ Lansing Bureau Chief Tim Skubick caught up with State Treasurer Andy Dillon to ask him that very question.
“There’s two cities I met with that were not on our radar, that expressed that they have a cash shortage problem that will happen in the next three or four months. So, if I give you a number it’s not necessarily reality, it’s just a number that I can give you is one based on what I know today… and it’s less than ten,” Dillon said.
Skubick said that at less than ten, it is not exactly a booming list of bankruptcies.