Introduced
by
To allow local governments to borrow money to cover unfunded employee pension liabilities, and also to cover the post-retirement health insurance benefits promised by past or current officials. Unlike other local government borrowing (usually called “bonding” or “selling bonds”), no vote of the people would be required. Note: Although the Michigan constitution requires payment of government pension promises, this does <i>not</i> apply to retired government employee health insurance benefits. In contrast, the new debt the bill would authorize <i>would</i> be an enforceable obligation on taxpayers.
Referred to the Committee on Local, Intergovernmental, and Regional Affairs
