There are two types of Financial Planning and Supervision Commissions: those that are formed to help school districts and those that are created to assist units of local government. In both cases, a commission is created after the Auditor of State declares the entity to be in a state of fiscal emergency.
For school districts, the Financial Planning and Supervision Commission consists of five members: a representative of the State Superintendent; a representative of the Director of the Office of Budget and Management; a business person appointed by the Governor; a parent with a child in the district, who is appointed by the State Superintendent; and a business person appointed by the mayor or county auditor. By law, the commission chair is the representative of the State Superintendent.
- Helps commission review or assume responsibility for school district's finances to ensure a balance budget.
- Helps commission make reductions in force to bring the school district's budget into balance.
Units of Local Government
For units of local government, including cities, villages, townships and counties, a seven-member commission is appointed. A representative of the Director of the Office of Budget and Management, a representative of the Treasurer of State and three locally nominated gubernatorial appointees serve on all local government Financial Planning and Supervision Commissions. For cities and villages, the mayor of the municipality and the presiding officer of the local legislative body are also Commission members. For townships, a member of the board of trustees and the county auditor serve on the Commission. For a county, the president of the board of commissioners and the county auditor are Commission members.
- Helps units of local government prepare plans to overcome financial difficulties.
- Provides Chairman for each financial planning commission.