Struggling Communities, Schools Can Apply for More Low-Interest Loans Under Legislation

Struggling Michigan school districts and municipal governments can receive low-interest emergency loans to help maintain their ability to provide services to students and residents under a legislative package approved by the state Legislature this week.

State Rep. Mark Ouimet, chairman of the House Local, Intergovernmental and Regional Affairs Committee, shepherded the bills through the committee process and introduced one of the bills in the package. House Bills 5566-69 allow the state treasurer to make $85 million available to schools and governments in distress.

"Michigan schools and municipal governments that are struggling due to limited funding must be able to continue services to local residents, especially when it comes to our schools," said Ouimet, R-Scio Township. "Increasing funding for this important loan program is an important way to help our schools and communities."

A total of $50 million will be made available to schools and $35 million to municipalities under the bills. The extra funding may be issued until Sept. 30, 2018, under the legislation.

Ouimet said no local governments have ever defaulted on a loan in the existing program. The program currently contains $5 million annually in funding for the loans.

The bills now go to the governor for consideration.