http://www.wthitv.com/dpp/news/local/bankruptcy-bill Will your city declare bankruptcy? A new law may allow it Updated: Tuesday, 28 Dec 2010, 6:34 PM EST Published : Tuesday, 28 Dec 2010, 3:00 PM EST * Kate Greene INDIANA, (WTHI) - It's not uncommon to see families or companies filing for bankruptcy, but you could see your own city in the mix. A new bill is being proposed that would allow Indiana cities to fill for bankruptcy. This new bill backed by Governor Mitch Daniels could be local governments way out of financial trouble. The bill would allow cities to file bankruptcy and allow the state to takeover. What this means is local government can seek an "emergency manager" from the state to help cut the budget. If the emergency manager can not do it, then they can file for bankruptcy. It's an emergency action, the state currently does not allow. A few Wabash Valley cities told News 10 it's an option they hope they will never have to face. "I'm not saying it won't happen, but if the state keeps bugging me it might happen," Mayor of Clinton Art Lindsay said. "But as long as I'm around I don't see us filing for bankruptcy in Clinton, Indiana." As for Mayor Duke Bennett, he said although things are tough in Terre Haute, it's no where near bankruptcy He thinks the bill makes sense because it's more likely for cities to go bankrupt today than in years past. However, Mayor Bennett said he's concerned about what it could mean for taxpayers. "It would be a big tab the state would have to pick up which kind of drains some other resources that may come to us through state funding," Terre Haute Mayor Duke Bennett said. "Or that burden's going to come back on individual taxpayers because they'll have to pick up an additional share to bail them out." Mayor Ann Bradshaw of Brazil, Indiana gave News 10 this statement concerning the proposed bill: "I, as a mayor would investigate this to the fullest, it is hard to juggle funds--and to know that again in the next year cuts are mandated down from the state. With these cuts, what are cities to do? Elected officials work hard to accommodate the citizens in their cities. I would work extremely hard to keep our city from going bankrupt." Governor Daniels said he hopes local governments will not seek bankruptcy as an option, but he believes the state needs the law in case it happens.