Again, while not quite in line with State Treasurer Andy Dillon’s hope for enactment by the end of February, the Senate Committee on Education took a step closer by passing House Bills 4214, 4216, 4217 and 4218, the final pieces of a legislative package to reform the statutes governing emergency financial managers (EFMs) for school districts and municipalities. The action means the House and Senate are now in agreement on the differences that had remained and the package could be bound for the Governor’s desk as soon as next week.
In addressing many of the controversial aspects of the package, including eliminating the measure allowing a private firm to serve as an EFM and altering the powers of an EFM in regard to asset sales (anything over $50,000 and the closure of a school building would now require approval by the State Treasurer), Republicans had hoped to obtain some Democratic support – a goal not-yet achieved.
Governor Rick Snyder’s budget recommendations include a $471 per-pupil funding cut to school districts as well as cuts to revenue sharing for counties and municipalities – a proposal that has many close to the issue agreeing that the recommendations, if adopted, could result in a drastic increase in the amount of local governmental units finding themselves under the control of an EFM.
Labels: EFM, emergency financial manager reform