The Snyder administration is preparing new legislation to help financially strapped cities and schools now that voters have rejected the original emergency manager law that was on the November ballot.
One lobbyist argues that's exactly what the voters wanted: a restoration of democracy.
"I think what the voters clearly said was they want democracy at the local unit of government. They expect their elected officials to have a clear role in decisions on any final problems that occur," said Nic Ciaramitaro, afscme lobbyist.
The republicans are offering two choices: vote for an emergency manager or vote for bankruptcy or work out a consent agreement such as the one in Detroit.
"We will offer something and one of them will be an emergency or a federal bankruptcy option and let them explain that to your constituents," said Senator Randy Richardville.
Unions oppose giving the emergency manager the right to cancel union contracts, but the administration believes that must stay.
"If they go that route it would be just like the bankruptcy court, that person would have to have the authority to cancel contracts in order to get the city back on sound footing," said Dick Posthumus, the governor's lobbyist.
The new law could be ready by the end of the year.