EM http://michiganradio.org en State Treasury officials brace for suspension of EM law http://michiganradio.org/post/state-treasury-officials-brace-suspension-em-law <p align="LEFT">The state Supreme Court could decide soon whether a challenge to Michigan&#39;s new emergency manager law will go before voters in November.</p><p align="LEFT">State treasury officials are assuming that it will, and they are preparing for the worst.</p><p align="LEFT">Roger Fraser is Deputy State Treasurer. He oversees the work of the state&#39;s eight emergency managers.</p><p align="LEFT">Fraser&nbsp;says if a challenge to the law goes on the ballot, the state&#39;s old emergency manager law will go into effect until November.</p><p align="LEFT">Current emergency managers will keep their jobs, but they will no longer have the authority to&nbsp;suspend union contracts, which Fraser says is only done if absolutely necessary.</p><p align="LEFT">Fraser says a suspension of the emergency manager law puts into question the budgets that the emergency managers completed with the help of the new law.&nbsp;</p><p align="LEFT">He also thinks things will go from bad to worse if voters repeal the law.</p><p align="LEFT">&quot;Well, I think then you&#39;re gonna see more of what&#39;s happening in California,&quot; says Fraser.&nbsp; &quot;Local units will have no choice but to go to bankruptcy.&quot;</p><p align="LEFT">Fraser says&nbsp;if Michigan cities&nbsp;go bankrupt,&nbsp;it could raise interest rates for all cities&#39; debt, as ratings agencies increase the risk associated with cities&#39; municipal bonds.</p><p align="LEFT">And a city bankruptcy would put the state on the hook for paying&nbsp;the city&#39;s bills.</p><p align="LEFT">Opponents of the emergency manager law say it is undemocratic.&nbsp;<span style="display: none;">&nbsp;</span></p><p align="LEFT">There are five Michigan cities that have emergency managers&nbsp;right now - Highland Park, Pontiac, Ecorse, Benton Harbor, and Flint.</p><p align="LEFT">Three school districts are also currently run by emergency managers: Detroit Public Schools, Highland Park Schools, and Muskegon Heights Schools.</p><p align="LEFT">The state has entered into a consent agreements with the cities of River Rouge, Inkster, and Detroit.</p><p align="LEFT">The state also has a watch list&nbsp;for schools, counties and cities&nbsp;that are on the&nbsp;brink of requiring a financial review.</p><p align="LEFT">State officials are working closely with Wayne County to determine the state of its finances.</p><p align="LEFT">Allen Park, Hamtramck, Muskegon Heights, Royal Oak Township, Dearborn Heights, and Harper Woods&nbsp;are in shaky financial shape, too.&nbsp; Two additional school districts are&nbsp;also on the list: Benton Harbor, and East Detroit. Wed, 11 Jul 2012 22:07:12 +0000 Tracy Samilton 8235 at http://michiganradio.org State Treasury officials brace for suspension of EM law