CHICAGO - Local governments in Michigan would have the ability to sell bonds without voter approval to establish trusts that would be used to finance their accrued retiree health-care benefits under a package of bills that the House passed last week and is now pending in a Senate committee.

Under the three-bill package, municipalities could issue revenue or limited-tax general obligation bonds to finance up to 75% of their unfunded accrued other post-employee benefits liabilities. Bond proceeds would be used to set up an irrevocable health-care trust fund to cover the cost of annual payments.

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