Introduced by Rep. Wayne Schmidt (R) on April 10, 2012
To allow local governments to borrow money to cover unfunded employee pension liabilities, and also to cover the post-retirement health insurance benefits promised by past or current officials. Unlike other local government borrowing (usually called “bonding” or “selling bonds”), no vote of the people would be required. Note: Although the Michigan constitution requires payment of government pension promises, this does not apply to retired government employee health insurance benefits. In contrast, the new debt the bill would authorize would be an enforceable obligation on taxpayers. Official Text and Analysis.
Referred to the House Local, Intergovernmental, and Regional Affairs Committee on April 10, 2012