Michigan passes 'financial martial law' bill - Jennifer Epstein - POLITICO.com

Michigan passes 'financial martial law' bill - Jennifer Epstein - POLITICO.com

"Supporters say the bill gives the state a way to step into distressed municipalities and schools before they collapse. It also gives emergency financial managers broad authority to end employee union contracts, and to nullify elected boards and councils.

The bill’s sponsor, Republican Rep. Al Pscholka, said Tuesday that it would give the state the power it needs to dig important institutions out of financial holes. “For years we have allowed cities and schools to be on the verge of bankruptcy without any intervention,” he told Reuters. “When the state finally does arrive, in many cases we find the financial records in disarray and leave emergency managers with very few good options to balance the books.”

Republican Sen. Jack Brandenburg last week said emergency managers would be deployed only in communities that need “financial martial law.”"