The Michigan House Local, Intergovernmental and Regional Affairs Committee last week began considering a bill to increase the amount a troubled municipality could borrow from the state to $20 million from $3 million.

The legislation, introduced by Rep. Cindy Denby, R-Fowlerville, would also increase the state’s annual municipal loan fund to $100 million from $5 million. School districts would also be allowed to apply for the loans, which are currently restricted to local municipalities.

Denby said the state treasurer and governor’s office helped her craft the bill, according to local reports.

The recently signed consent decree between Detroit and the state allows the city to apply for an emergency loan, though city officials said they had no current plans to do so.

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