Holy shit.

[UPDATE] The MI Senate passed the bill, too. It goes to Snyder for signing shortly.
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This is...wow:

Republicans in Michigan have come up with a revolutionary solution to the state’s growing budget crisis: claim the right to auction off entire municipal entities, like cities, counties, school districts and water systems.

In a new bill being pushed by Governor Rick Snyder (R), the governor, or a company hired by the governor, would have the power to declare municipal entities insolvent. Amid the fiscal emergency, the governor or the governor’s agent would then be empowered to appoint an emergency manager to oversee all financial matters.

Under language in the bill, that individual would be able to cancel any and all contracts — including collective bargaining rights for unions — and outright dis-incorporate whole cities, dismissing lawfully elected officials in the process.

I mean, why doesn't he just call himself "King" and be done with it?

The Michigan House has already passed this bill. I was perusing the Senate bill (it is SB 0153) and it's just as bad as it sounds:

The emergency manager shall have broad powers in receivership to rectify the financial emergency and to preserve the local government's capacity to provide necessary governmental services essential to the public health, safety, and welfare. Upon the declaration of receivership and during the pendency of receivership, the governing body and the chief administrative officer of the local government may not exercise any of the powers of those offices except as may be specifically authorized in writing by the emergency manager and are subject to any conditions required by the emergency manager.

5) All of the following apply to an emergency manager:

(a) The emergency manager shall be chosen on the basis of competence.
(b) The emergency manager may but need not be a resident of the local government.
(c) The emergency manager may be an individual or firm.
(d) The emergency manager shall serve at the pleasure of the state treasurer, with the concurrence of the superintendent of public instruction if the local government is a school district.
(e) The emergency manager's compensation and reimbursement for actual and necessary expenses shall be paid by the local government and shall be set forth in a contract approved by the state treasurer.

You're going to pay for your new ruler!

Anyway...

6) In addition to staff otherwise authorized by law, an emergency manager shall appoint additional staff and secure professional assistance as the emergency manager considers necessary to fulfill his or her appointment.

[...]

(2) If an order of the emergency manager to officials or employees of the local government under subsection (1) is not reasonably carried out and the failure to carry out an order is disrupting the emergency manager's ability to manage the local government, the emergency manager, in addition to other remedies provided in this act, may prohibit the official or employee from access to the local government's office facilities, electronic mail, and internal information systems.

Sec. 18. (1) The emergency manager shall develop and may amend a written financial and operating plan for the local government. The plan shall have the objectives of ensuring that the local government is able to provide necessary governmental services essential to the public health, safety, and welfare on an ongoing and sustainable basis, and protecting the continued financial viability of the local government.

The next section, Section 19 is really, really long. It details how the "emergency manager" can take over everything, federal payments and their disbursements, for example ("Receive and disburse on behalf of the local government all federal, state, and local funds earmarked for the local government."). And:

(g) Make, approve, or disapprove any appropriation, contract, expenditure, or loan, the creation of any new position, or the filling of any vacancy in a permanent position by any appointing authority.
(h) Review payrolls or other claims against the local government before payment.
(i) Notwithstanding any minimum staffing level requirement established by charter or contract, establish and implement staffing levels for the local government.
(j) Reject, modify, or terminate 1 or more terms and conditions of an existing contract. After meeting and conferring with the appropriate bargaining representative and, if in the emergency manager's sole discretion and judgment, a prompt and satisfactory resolution is unlikely to be obtained, reject, modify, or terminate 1 or more terms and conditions of an existing collective bargaining agreement. The rejection, modification, or termination of 1 or more terms and conditions of an existing collective bargaining agreement under this subdivision is a legitimate exercise of the state's sovereign powers [...]

This is just...incredible. And not in a good way.