Home » News

 LANSING - In an effort to help communities rebound from a financial crisis as quickly as possible, State Representative Tim Melton (D-Pontiac) today introduced a plan that promotes cooperation between municipal Emergency Financial Managers (EFMs) and local officials.

 "When facing financial emergencies, everyone needs to be working together to put their community back on the road to recovery," Melton said. "These bills will help clear up a lot of the confusion swirling around the authority of Emergency Financial Managers. It is absolutely critical to struggling communities that all officials are on the same page and working together to create long-term positive solutions."

 Melton's legislation is intended to clear up a number of inconsistencies with the Local Government Fiscal Responsibility Act, and provide a greater level of scrutiny, clarity and cooperation in decisions made by EFMs.

The legislation would:

• Require EFMs to have a financial plan for the community in place within six months of being appointed.
• Require approval from the state before EFMs can sell municipal assets or enter into contracts longer than one year.
• Allow the chief administrative officer to oversee day-to-day operations subject to financial limitations set by the EFM.

"Communities around the state have been financially stressed in this economy, and some have needed financial managers to put them back on track," Melton said. "However, the process can be quite confusing and cause problems that delay recovery and growth. I look forward to working on these bills to ensure greater cooperation and accountability when working with an EFM - everyone's goal should be getting our communities back to fiscal solvency."

###