Mich. Comp. Laws » Michigan Compiled Laws / Chapter 141 / Act 436 of 2012
Michigan Compiled Laws

Mich. Comp. Laws § 141.1554 (2026)

School district in receivership; additional actions.

✓ current as of July 2026
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LOCAL FINANCIAL STABILITY AND CHOICE ACT


Act 436 of 2012


141.1554 School district in receivership; additional actions.

Sec. 14.

    In addition to the actions otherwise authorized in this act, an emergency manager for a school district may take 1 or more of the following additional actions with respect to a school district that is in receivership:

    (a) Negotiate, renegotiate, approve, and enter into contracts on behalf of the school district.

    (b) Receive and disburse on behalf of the school district all federal, state, and local funds earmarked for the school district. These funds may include, but are not limited to, funds for specific programs and the retirement of debt.

    (c) Seek approval from the superintendent of public instruction for a reduced class schedule in accordance with administrative rules governing the distribution of state school aid.

    (d) Subject to section 19, sell, assign, transfer, or otherwise use the assets of the school district to meet past or current obligations or assure the fiscal accountability of the school district, provided the use, assignment, or transfer of assets for this purpose does not impair the education of the pupils of the school district. The power under this subdivision includes the closing of schools or other school buildings in the school district.

    (e) Approve or disapprove of the issuance of obligations of the school district.

    (f) Exercise solely, for and on behalf of the school district, all other authority and responsibilities affecting the school district that are prescribed by law to the school board and superintendent of the school district.

    (g) With the approval of the state treasurer, employ or contract for, at the expense of the school district, school administrators considered necessary to implement this act.

History: 2012, Act 436, Eff. Mar. 28, 2013

Compiler's Notes:

    Enacting section 2 of Act 436 of 2012 provides:

    "Enacting section 2. It is the intent of the legislature that this act function and be interpreted as a successor statute to former 1988 PA 101, former 1990 PA 72, and former 2011 PA 4, and that whenever possible a reference to former 1988 PA 101, former 1990 PA 72, or former 2011 PA 4, under other laws of this state or to a function or responsibility of an emergency financial manager or emergency manager under former 1988 PA 101, former 1990 PA 72, or former 2011 PA 4, under other laws of this state shall function and be interpreted to reference to this act, with the other laws of this state referencing former 1988 PA 101, former 1990 PA 72, or former 2011 PA 4, including, but not limited to, all of the following:

     (a) The charter township act, 1947 PA 359, MCL 42.1 to 42.34.

     (b) 1966 PA 293, MCL 45.501 to 45.521.

     (c) 1851 PA 156, MCL 46.1 to 46.32.

     (d) The general law village act, 1895 PA 3, MCL 61.1 to 74.25.

     (e) The home rule village act, 1909 PA 278, MCL 78.1 to 78.28.

     (f) The fourth class city act, 1895 PA 215, MCL 81.1 to 113.20.

     (g) The home rule city act, 1909 PA 279, MCL 117.1 to 117.38.

     (h) The metropolitan transportation authorities act of 1967, 1967 PA 204, MCL 124.401 to 124.426.

     (i) 1947 PA 336, MCL 423.201 to 423.217."

Notes of Decisions
Cited in 8 cases, 2014–2020 · leading case: Kincaid v. City of Flint, 874 N.W.2d 193 (Mich. Ct. App. 2015).
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Kincaid v. City of Flint, 874 N.W.2d 193 (Mich. Ct. App. 2015). “, MCL 141.1554(c). The EM is not an appointed member of the financial assistance loan board or review team.”
Lm v. State of Michigan, 307 Mich. App. 685 (Mich. Ct. App. 2014). “1551(l)(e) to include in a “financial and operating plan” “an educational plan” for school districts, MCL 141.1554 suggests that the role is financial in nature, encompassing the negotiation of contracts, disbursement of funds, reductions in class schedules, closing of schools,…”
Gary B. v. Snyder, 329 F. Supp. 3d 344 (E.D. Mich. 2018). “§ 141.1554(f). 3. Priority Schools and the Education Achievement Authority The State's interventions have not always been finance-driven.”
Gary B. v. Gretchen Whitmer (6th Cir. 2020). “” Mich. Comp. Laws § 141.1554 (f); see also Gary B.”
Gary B. v. Snyder, 313 F. Supp. 3d 852 (E.D. Mich. 2018). “§ 141.1554(f). 3. Priority Schools and the Education Achievement Authority The State's interventions have not always been finance-driven.”
S S v. State of Michigan (Mich. Ct. App. 2014). “” (Emphasis added.) While an emergency manager is authorized by MCL 141.”
S S v. State of Michigan (Mich. Ct. App. 2014). “” (Emphasis added.) While an emergency manager is authorized by MCL 141.”
S S v. State of Michigan (Mich. Ct. App. 2014). “” (Emphasis added.) While an emergency manager is authorized by MCL 141.”
— Mich. Comp. Laws § 141.1554(c) — 1 case
Kincaid v. City of Flint, 874 N.W.2d 193 (Mich. Ct. App. 2015). “, MCL 141.1554(c). The EM is not an appointed member of the financial assistance loan board or review team.”
— Mich. Comp. Laws § 141.1554(f) — 2 cases
Gary B. v. Snyder, 329 F. Supp. 3d 344 (E.D. Mich. 2018). “§ 141.1554(f). 3. Priority Schools and the Education Achievement Authority The State's interventions have not always been finance-driven.”
Gary B. v. Snyder, 313 F. Supp. 3d 852 (E.D. Mich. 2018). “§ 141.1554(f). 3. Priority Schools and the Education Achievement Authority The State's interventions have not always been finance-driven.”
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