MI SB0838

Extends through December 31, 2023 the authority for counties, cities, villages, and townships to issue municipal securities without voter approval to pay unfunded pension liabilities (up to 95% of the difference between liabilities and assets) or unfunded health care liabilities (up to 60% of the difference).

Requires municipalities to prepare and publicly post a comprehensive financial plan before issuance that includes analysis of obligations, evidence of sufficient funds, debt calculations, projected net present value savings of at least 15% for pensions or 20% for health care, and certification of compliance with reporting requirements.

Mandates that municipalities obtain departmental approval and have an A-rated or higher credit rating from at least one nationally recognized rating agency before issuing securities under this section.

Restricts use of proceeds to pension trust funds, health care trust funds, or restricted trust funds, with investments subject to public employee retirement system guidelines and reporting requirements under generally accepted accounting principles.

Prohibits municipalities from rescinding pension or health care plan closures while securities remain outstanding and limits benefit structure changes to only future accruals after issuance.