CHICAGO – A week after Michigan voters overturned the state’s emergency management law for distressed governments, at least two emergency managers say they are likely to leave their diminished posts, and state officials are warning that the repeal could set the stage for the state’s first municipal bankruptcies.

The repeal of the controversial law, Public Act 4, leaves uncertain the future of the eight local governments that are currently under state control. Detroit operates under a consent agreement with the state that has ties to Public Act 4 but does not rely on it. Opponents of the financial stability agreement, including some members of the Detroit City Council, said they plan to challenge the state’s new authority.

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