Senate Bill 153 Summary

• Establishes the "Local Government and School District Fiscal Accountability Act" to address financial crises in municipalities and school districts through state oversight and intervention.

• Creates a preliminary review process initiated by the state financial authority (State Treasurer for municipalities, Superintendent of Public Instruction for school districts) when specific financial distress indicators are present, including unpaid creditors, pension fund failures, and missed payroll payments.

• Authorizes appointment of review teams and emergency managers with broad powers to restructure operations, modify contracts, reject collective bargaining terms, consolidate services, and develop financial recovery plans for local governments in financial emergency.

• Allows placement of severely distressed local governments into receivership under state control, with emergency managers authorized to suspend local elected officials' powers and make major operational decisions without local approval.

• Repeals the prior 1990 Local Government Fiscal Responsibility Act and conditions enactment on passage of companion bills SB 154-158.