MI HB5626

Authorizes cities and counties to issue general obligation bonds or revenue bonds to fund operating deficits from past fiscal years or projected current-year deficits without voter approval if issued as limited tax bonds.

Requires cities to meet three conditions before applying to the state administrative board: accumulated deficit exceeding emergency municipal loan fund limits, deficit exceeding tax anticipation note capacity, and board approval within 7 days of complete application.

Sets maximum bond issuance limits at 3% of state equalized property valuation or $125,000,000, with a temporary exception allowing cities to issue up to $250,000,000 between January 1, 2010 and September 1, 2010.

Allows cities and counties to pledge distributable state aid (shared revenues) to secure bond payments, with statutory liens on pledged aid that are superior to other liens for bonds issued after January 1, 2010 and before September 1, 2010.

Permits legislative bodies to establish special funds from property tax collections to pay principal and interest on bonds without voter referendum, and allows pledging of unencumbered revenues, taxes, and distributable aid to secure repayment.