Introduced by Rep. Fred Durhal, III D-Detroit on December 1, 2011
To establish that when a fiscally failing school district enters an agreement with the state for direct payment to bondholders of future school aid money pledged to cover debt service on money borrowed by the district to cover deficit spending, the priority of these bondholders will be honored by the state, except that repayment is subject to any subsequent reduction of school aid payments to the district. See also House Bill 5194. Official Text and Analysis.
Referred to the House Appropriations Committee on December 1, 2011
Reported in the House on December 7, 2011
Without amendment and with the recommendation that the bill pass.
Amendment offered by Rep. Chuck Moss R-Birmingham on December 8, 2011
To clarify the application of the proposed law to school districts that have already engaged in borrowing to cover deficit spending.
The amendment passed by voice vote in the House on December 8, 2011