IPR News

House Bill Makes Bankruptcy an Option for Cities

by IPR News

April 19, 2011

(STATEHOUSE) – THE HOUSE JUDICIARY COMMITTEE APPROVEDA BILL ALLOWING INDIANA CITIES STRUGGLING TO PAY THEIR BILLS TO DECLARE BANKRUPTCY. THE MAYOR AND CITY COUNCIL WOULD HAVE TO AGREE TO LET THE STATE APPOINT AN EMERGENCY MANAGER TO TAKE ONE LAST TRY AT SLASHING THE BUDGET, RENEGOTIATING CONTRACTS, AND DOING WHATEVER ELSE IT TAKES TO BALANCE THE BOOKS. GOING BANKRUPT WOULD BE THE MANAGER‘S DECISION. OTHER LOCAL GOVERNMENTS, SUCH AS COUNTIES OR SCHOOL CORPORATIONS, COULD TAKE THE SAME STEP WITH APPROVAL FROM THEIR EXECUTIVE AND LEGISLATIVE BODIES. THE SENATE HAS ALREADY PASSED A SIMILAR BILL. THE HOUSE VOTES WEDNESDAY OR THURSDAY.

(From Network Indiana)