On Election Day, Michigan voters repealed a law that allowed the state to take control of struggling municipalities. With that option now gone, struggling Michigan municipalities may view a bankruptcy filing as their only option. Those who supported the enactment of the law and opposed its repeal, including the governor, said its repeal may result in the state being caught by surprise when a municipality faces extreme financial difficulty. And, this surprise may prevent the state from effectively administering aid to the municipality before an eleventh hour bankruptcy filing becomes a necessity.
Even more uncertain is what this means for the districts and municipalities that are currently being overseen by emergency managers operating under the now-repealed law. For more on this law and the questions it presents, click here.