Michigan gov signs bill that gives local govts fiscal options

Thu Dec 27, 2012 4:25pm GMT

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Dec 27 (Reuters) - Michigan Governor Rick Snyder signed into law on Thursday a bill that gives options to cities and school districts for dealing with severe financial problems, including bankruptcy.

The law, which was passed by the Republican-controlled legislature earlier this month, allows local elected officials to choose between Chapter 9 municipal bankruptcy, if the move is approved by the governor; an emergency manager; arbitration with a neutral party; or a consent agreement laying out terms for fixing the government's finances.