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Local governments in Indiana could ask for a state takeover to fix financial troubles instead of declaring bankruptcy under a bill advancing in the Legislature.
The Senate Judiciary Committee voted 9-0 Wednesday to approve the bill, which allows a city or county to ask for the appointment of an emergency manager to take over its finances. That could be done after steps such as missing two consecutive payrolls or defaulting on bond payments.
The Times of Munster reports several Gary residents spoke to the committee and predicted that financially troubled city would be the first to seek a state takeover.
Bill sponsor Sen. Ed Charbonneau of Valparaiso says the legislation isn't targeted at Gary and if enacted would apply statewide. The bill now goes to the full Senate for consideration.
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