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Key Votes

HB 4214 - Fiscal Accountability for Local Governments and School Districts - Key Vote

Michigan Key Votes

Stages

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Issues

Stage Details

Legislation - Signed (Executive) -
Legislation - Bill Passed With Amendment (Senate) (26-12) - (Key vote)

Title: Fiscal Accountability for Local Governments and School Districts

Vote Smart's Synopsis:

Vote to pass a bill that authorizes the Governor to appoint an emergency manager to act on behalf of local governments in fiscal crisis.

Highlights:
  • Authorizes the Governor to appoint an emergency manager to act for the local government to rectify the financial emergency and to ensure the fiscal accountability of the local government (Sec. 15). 
  • Authorizes the emergency manager to issue any orders that the manager considers necessary in order to accomplish the purposes of this bill (Sec. 17).
  • Authorizes the state financial authority of a local government to conduct a preliminary review in order to determine the existence of a financial problem if one or more of the following occur (Sec. 12):
    • The governing board or chief administrative officer of a local government requests a preliminary review under this act;
    • The state financial authority receives a written request from a creditor with an undisputed claim that remains withstanding 6 months after its due date against the local government that exceeds the greater of $10,000 or 1 percent of the annual general fund budget of the local government;
    • The state financial authority receives a petition containing specific examples and an outline of local government financial distress signed by a number of registered electors residing within the local government's jurisdiction;
    • The state financial authority receives written notification that a local government has not deposited its minimum obligation payment to the local government pension fund as required by law;
    • The state financial authority receives written notification that the local government has failed for a period of 7 days or more after the scheduled date of payment to pay wages and salaries or other compensation owed to employees or benefits owed to retirees;
    • The local government fails to file an annual financial report or audit that conforms to the minimum procedures and standards of the state financial authority and is required for local governments;
    • A municipal government is behind in the distribution of tax revenues, as required by law, that it has collected for another taxing jurisdiction, and that taxing jurisdiction requests a preliminary review;
    • A municipal government has ended a fiscal year with a deficit;
    • A school district ended its most recently completed fiscal year with a deficit in 1 or more of its funds and the school district has not submitted a deficit elimination plan to the state financial authority within 30 days after the district's deadline for submission of its annual financial statement; and
    • The existence of other facts or circumstances that in the state treasurer's discretion for a municipal government are indicative of municipal financial stress, or, that in the superintendent of public instruction's sole discretion for a school district are indicative of school district financial stress.
Legislation - Concurrence Vote Passed (House) (62-48) - (Key vote)

Title: Fiscal Accountability for Local Governments and School Districts

Vote Smart's Synopsis:

Vote to pass a bill that authorizes the Governor to appoint an emergency manager to act on behalf of local governments in fiscal crisis.

Highlights:
  • Authorizes the Governor to appoint an emergency manager to act for the local government to rectify the financial emergency and to ensure the fiscal accountability of the local government (Sec. 15).
  • Authorizes the emergency manager to issue any orders that the manager considers necessary in order to accomplish the purposes of this bill (Sec. 17).
  • Authorizes the state financial authority of a local government to conduct a preliminary review in order to determine the existence of a financial problem if one or more of the following occur (Sec. 12):
    • The governing board or chief administrative officer of a local government requests a preliminary review under this act;
    • The state financial authority receives a written request from a creditor with an undisputed claim that remains withstanding 6 months after its due date against the local government that exceeds the greater of $10,000 or 1 percent of the annual general fund budget of the local government;
    • The state financial authority receives a petition containing specific examples and an outline of local government financial distress signed by a number of registered electors residing within the local government's jurisdiction;
    • The state financial authority receives written notification that a local government has not deposited its minimum obligation payment to the local government pension fund as required by law;
    • The state financial authority receives written notification that the local government has failed for a period of 7 days or more after the scheduled date of payment to pay wages and salaries or other compensation owed to employees or benefits owed to retirees;
    • The local government fails to file an annual financial report or audit that conforms to the minimum procedures and standards of the state financial authority and is required for local governments;
    • A municipal government is behind in the distribution of tax revenues, as required by law, that it has collected for another taxing jurisdiction, and that taxing jurisdiction requests a preliminary review;
    • A municipal government has ended a fiscal year with a deficit;
    • A school district ended its most recently completed fiscal year with a deficit in 1 or more of its funds and the school district has not submitted a deficit elimination plan to the state financial authority within 30 days after the district's deadline for submission of its annual financial statement; and
    • The existence of other facts or circumstances that in the state treasurer's discretion for a municipal government are indicative of municipal financial stress, or, that in the superintendent of public instruction's sole discretion for a school district are indicative of school district financial stress.
Legislation - Bill Passed (House) (62-47) - (Key vote)

Title: Fiscal Accountability for Local Governments and School Districts

Vote Smart's Synopsis:

Vote to pass a bill that establishes a plan for ensuring the fiscal accountability of local governments and school districts.

Highlights:
  • Authorizes the Governor to appoint an emergency manager to act for the local government to rectify the financial emergency and to ensure the fiscal accountability of the local government (Sec. 15).
  • Authorizes the emergency manager to issue any orders that the manager considers necessary in order to accomplish the purposes of this bill (Sec. 17).
  • Authorizes the state financial authority of a local government to conduct a preliminary review in order to determine the existence of a financial problem if one or more of the following occur (Sec. 12):
    • The governing board or chief administrative officer of a local government requests a preliminary review under this act;
    • The state financial authority receives a written request from a creditor with an undisputed claim that remains withstanding 6 months after its due date against the local government that exceeds the greater of $10,000 or 1 percent of the annual general fund budget of the local government;
    • The state financial authority receives a petition containing specific examples and an outline of local government financial distress signed by a number of registered electors residing within the local government's jurisdiction;
    • The state financial authority receives written notification that a local government has not deposited its minimum obligation payment to the local government pension fund as required by law;
    • The state financial authority receives written notification that the local government has failed for a period of 7 days or more after the scheduled date of payment to pay wages and salaries or other compensation owed to employees or benefits owed to retirees;
    • The local government fails to file an annual financial report or audit that conforms to the minimum procedures and standards of the state financial authority and is required for local governments;
    • A municipal government is behind in the distribution of tax revenues, as required by law, that it has collected for another taxing jurisdiction, and that taxing jurisdiction requests a preliminary review;
    • A municipal government has ended a fiscal year with a deficit;
    • A school district ended its most recently completed fiscal year with a deficit in 1 or more of its funds and the school district has not submitted a deficit elimination plan to the state financial authority within 30 days after the district's deadline for submission of its annual financial statement; and
    • The existence of other facts or circumstances that in the state treasurer's discretion for a municipal government are indicative of municipal financial stress, or, that in the superintendent of public instruction's sole discretion for a school district are indicative of school district financial stress.
Legislation - Introduced (House) -

Title: Fiscal Accountability for Local Governments and School Districts

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