To greatly increase the level of borrowing from the state that school districts and local governments can use to cover “deficit spending” that exceeds their current revenues. Specifically, under House Bills 5566 to 5570, a $5 million annual cap on this state lending would increase to $100 million each year through 2018, and the maximum amount per loan would increase from $3 million to $20 million.   Official Text and Analysis.

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

To limit the application of some of the proposed requirements and restrictions to Detroit and the Detroit school district.

To prohibit pay raises for employees of a city or school district that is given a deficit spending loan authorized by the bill until the loan is repaid.

To require a city that is given a deficit spending loan authorized by the bill to comply with the 2011 law that required higher employee health insurance contributions. That bill allowed cities (but not schools) to opt-out of its provisions.

To revise details of loans to a school district from advances from the state school aid fund.

To require that interest on loans authorized by the bill be no less than the average rate on 10 year municipal bonds, and allow higher rates.

To allow the state to raise the rates or accellerate the required repayment period of a loan if the municipality or school district is not in compliance with deficit reduction plans required by the bill.

With the recommendation that the substitute (S-5) be adopted and that the bill then pass.

To replace the previous version of the bill with one that increases the amount of deficit spending loans by a slightly lesser amount.

To greatly increase the level of borrowing from the state that school districts and local governments can use to cover “deficit spending” that exceeds their current revenues. Specifically, under House Bills 5566 to 5570, a $5 million annual cap on this state lending would increase to $85 million each year through 2018, and the maximum amount per loan would increase from $3 million to $20 million. Short term, this would primarily authorize state money for the Benton Harbor, Muskegon Heights, Highland Park and Pontiac school districts.

To give the bill immediate effect.

To concur with the Senate-passed version of the bill, which authorizes slightly less new state debt.