Michigan Studying Implications Of Failed Local Governments: Eye-Popping Options

This story from the Michigan Messenger is interesting because, in an era of stressed government finances, a leading Wisconsin law firm is listed among those helping along the planning in Michigan if local governing bodies there become insolvent.

Sections of the story:

"The Treasury Dept. is in the process of training potential Emergency Managers, so the Messenger asked for some details of the training in hopes of better understanding the motivations and priorities of the folks who may soon take over our schools and towns.

"It turns out the training itself was mostly outsourced to the law and accounting firms — Plante & Moran, Plunkett & Cooney, Miller Canfield, Foley & Lardner — already involved in emergency financial management of Michigan towns...

"Kevin Lucey of the Bloomfield Hills accounting firm O’Keefe and Associates, a member of the Michigan Chapter of the Turnaround Management Association, provided an agenda for the day and half long event which was held at MSU’s Henry Center for Executive Development on Feb. 9 and 10.


"About 60 people, mostly accountants, lawyers, former city managers, and “private sector turnaround specialists” attended the event which featured “war stories” by many current and former Emergency Financial Managers, Lucey said.

"Though the House had not yet finalized its bill to expand Emergency Manager powers at the time of the training many participants were excited about the tools it seemed ready to extend to them, Lucey said.

“The legislation as it previously was didn’t give you much of a sword, it did not really allow you to deal with the biggest items like pension and post retirement options,” Lucey said. “Going after the contracts is kind of what everyone has been waiting for.“

"Lucey said that attendees were also excited about a provision of the bill (removed in the House but slated for reconsideration in the Senate) that would ban elected officials in towns where financial emergency is declared from running for office for 10 years."