Granholm OKs higher bond limit for Mich. cities

DETROIT (AP) -- Gov. Jennifer Granholm has signed legislation increasing the cap for cities issuing fiscal stabilization bonds.

Spokeswoman Liz Boyd says Public Act 4 of 2010 was signed and filed last Friday.

It raises the cap from $125 million to $250 million and allows Detroit to sell more bonds as a way to help the city out of its budget deficit. State revenue-sharing funds would pay off the bonds within 20 years.

Boyd says the city now may apply for state Treasury Department approval to issue the bonds. State Administrative Board approval also is required.

The bill passed the Senate last Thursday by a 30-6 vote and the House by a 75-30 vote.

Detroit faces a deficit of about $300 million. Mayor Dave Bing urged state lawmakers in December to raise the cap.

Published: Tue, Feb 9, 2010