FOCUS ON EMERGENCY FINANCIAL MANAGERS (EFMs) GROWS

Public Act (PA) 72, the portion of Michigan statute allowing for an emergency financial manager (EFM) to be put in place for a financially troubled local unit (such as a municipality or a school district), has been receiving considerable attention since Governor Snyder called for changes prior to even taking office.

State Representative Al Pscholka (R-Stevensville) has legislation (HBs 4214 – 4218) to provide very broad powers to EFMs, including entering and breaking contracts, setting minimum staffing levels, entering into service consolidation agreements and selling assets. State Treasurer Andy Dillon has called on the Legislature to pass legislation to the Governor’s desk by March 1^st. The House Committee on Local, Intergovernmental & Regional Affairs took testimony; however, they did not act on the bills while the Senate committees on Education and Local Government & Elections held a joint meeting this week, which also including testimony by Department of Treasury Legislative Affairs Director Howard Ryan.

Preparation for a spike in local units under the control of an EFM has been a visible priority for Treasurer Dillon who had previously suggested too few proper professionals were available. The answer – a training program which was launched this week and saw 65 attendees complete extensive coursework and receive certification in the first of three scheduled seminars.

posted by PAA Online , Friday, February 11, 2011 1:11 PM
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