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MLive: New Emergency Manager Law Can Help Michigan Avoid 'the Next Detroit'

LANSING, MI -- Michigan is one of just 19 states with a law allowing it to intervene in municipal finances, according to a new report from The Pew Charitable Trusts released on the heels of Detroit's state-sanctioned bankruptcy filing.

Michigan realizes many other localities are experiencing financial struggles, and they want to figure out a way to help their localities so they don't become the next Detroit," Kil Huh said Wednesday, describing the state's latest emergency manager law.

Michigan was one of the first states in the nation to adopt a formal program for intervening in local financial crises. It has had an emergency manager law on the books since 1990.

Many of the other states with intervention laws are located in the northeast portion of the United States, "which may reflect the distress in many older cities that is aggravated by the decline of manufacturing," according to Pew.


As the Pew report notes, Michigan emergency manager laws have been highly controversial in the cities where they have been applied. State appointees currently run six Michigan cities and three local school districts.

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States' Fiscal Health

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