LANSING (WKZO-AM) — The Michigan Senate has unanimously passed legislation authored by Sen. Mike Nofs, R-Battle Creek, that would allow municipalities to keep more money in their rainy day funds.
Nofs said, currently, cities can only save money equal to 15 percent of previous general fund budgets in their emergency accounts.
“The cities came to us and said that we’re good stewards of the money and we’re saving it, and we’d like to increase that by five percent to 20 percent,” Nofs said.
But the restrictions on that cash are not slated for change.
“Money can only be used in case of a general fund shortfall, expenses that arise from a natural disaster or other public services,” Nofs said.
It was referred to a House committee after passage Wednesday.
– Anthony Pollreisz
