CHICAGO — Michigan would issue nearly $4 billion of tax-exempt bonds to pay off a $3.7 billion obligation to the federal government for unemployment insurance under a proposal being considered by state Treasurer Andy Dillon.

Dillon, the former Democratic House speaker, was tapped by Republican Gov. Rick Snyder for the treasurer position in December. He said last week that the borrowing is under consideration as one way to replenish the state’s federal unemployment trust fund and to avoid a looming $117 million interest payment and a federal tax on states with shortfalls.

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