Forty-five new emergency financial officers are being hired to execute a plan of action for local cities and schools that are in or on the border of filing for bankruptcy, Michigan treasurer Andy Dillon said. The managers are being trained by his office, and may be used to counsel local officials on how to refrain from overspending in order to avoid having the state cease control of their finances.

Dillon requested that the legislature alter the law to give emergency managers including Detroit Public Schools’ Robert Bobb more control to implement change. According to Dillon about four communities are on the border of experiencing a financial collapse. He says changing the law would push communities to balance their budgets by placing legal obligations on them. Dillon says the state’s employee retirement benefit liabilities are about $40 billion.   Michigan Budget Director John Nixon said 13 percent of state payroll goes towards for health benefits.