2005 Senate Bill 392

Exempt Detroit from state bankrupt city receivership law

Introduced in the Senate

April 19, 2005

Introduced by Sen. Hansen Clarke (D-1)

To exempt Detroit from the law that authorizes the governor to (indirectly) appoint an emergency financial manager for a local government experiencing a “serious financial problem” (insolvency). (The actual appointment is made by a board of three cabinet members who serve at the pleasure of the governor.) The City of Detroit faces a $300 million deficit on a $1.5 billion budget.

Referred to the Committee on Government Operations and Reform