Judge dismisses suit challenging EFM appointments - WNEM TV 5

Judge dismisses suit challenging EFM appointments

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A judge has dismissed a lawsuit challenging the state's appointment of emergency financial managers in Michigan's cash-strapped cities and school districts.

The Flint Journal reports (http://bit.ly/VF59tW) Ingham County Circuit Judge Rosemarie Aquilina's ruling came Wednesday.

Michigan voters in November rejected an emergency manager law and the state has been operating under a previous law that gives managers fewer powers. The lawsuit was brought on behalf of elected officials in some cities with state-appointed managers, saying the old law couldn't be revived.

The judge's ruling sided with the arguments from Michelle Brya, an assistant attorney general who represented the state

Meanwhile, a proposed replacement for an emergency manager law rejected by Michigan voters has been approved by a state House panel.

The House Local, Intergovernmental and Regional Affairs Committee voted 9-5 Thursday along party lines with one "pass" vote on what's known as The Local Financial Stability and Choice Act. The legislation now goes to the full House for consideration.

Republican Gov. Rick Snyder and legislative leaders unveiled it on Wednesday. The plan gives four choices to communities and school districts found to be in a financial emergency: accept an emergency manager, bankruptcy, mediation or a consent agreement with the state like the one in Detroit.

Voters decisively rejected Proposal 1 in November. The state since has been operating under a previous law that gives managers fewer powers.

Copyright 2012 Associated Press. All rights reserved.

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