MI SB0687

Amends 2012 PA 436 (Local Financial Stability and Choice Act) to add provisions for financial management teams as an alternative to emergency managers for underfunded municipal governments.

Creates a three-member financial management team appointed by the governor when the state treasurer declares a financial emergency exists in a municipal government due to underfunded status, with members requiring financial expertise, local government experience, and community residency.

Grants financial management teams broad powers to address underfunding, including requiring budget amendments, asset sales, personnel changes, and other operational modifications, while prohibiting actions that endanger public health/safety or unconstitutionally impair bonds and obligations.

Allows financial management teams to enter consent agreements with municipal governments that may delegate some powers to local officers and provide for consultant retention, with teams continuing until the municipality achieves sustainable non-underfunded status as approved by the state treasurer.

Appropriates $250,000 to the Department of Treasury for fiscal year 2018 to implement the financial management team provisions and requires creation of a website for public input on affected municipalities.