(Indianapolis, Ind.) - He says he hopes it does not happen, but Indiana Governor Mitch Daniels wants cities to be able to go bankrupt if neccessary.
State Senator Ed Charbonneau (R-Valparaiso) plans to file a bill during the upcoming 2011 Legislative Session that would allow cities to declare bankruptcy and be taken over by the state until they become financially solvent again.
Gov. Daniels is backing the plan.
Cities would go to the Indiana Distressed Unit Appeals Board who would appoint an emergency manager to cut budgets and renegotiate labor contracts.
Since a permanent cap on property tax caps was overwhelmingly approved by Hoosier voters in November, governments around the state have expressed concerns how the measure could limit tax revenue.