In a significant move to address the severe public debt crisis in Michoacán, Governor Alfredo Ramírez Bedolla has submitted a constitutional reform initiative to the local Congress. This reform aims to prohibit the state administration from contracting public debt that extends beyond the governor's elected term, effectively ending the practice of passing financial burdens onto future administrations. Over the last 25 years, Michoacán has experienced a staggering 640% increase in public debt, which has hampered investment in vital services and infrastructure by compromising future revenue streams.

The reform proposal adds two paragraphs to Article 44 of the local Constitution, which legislators deemed necessary to combat the poor financial management that has characterized previous state administrations. The michoacán legislature has already given general and specific approval to the initiative, highlighting a bipartisan recognition of the dire need to change the state’s fiscal practices. By addressing the historical issue of debt inheritance, this reform represents a notable shift towards more sustainable governance in the region.

If enacted, the new law will create stricter guidelines for future borrowing, aimed at improving fiscal responsibility and ensuring that future governments do not inherit unsustainable debt levels. This initiative could be pivotal in restoring confidence in Michoacán’s financial management and might pave the way for improved public investment in essential services that have been neglected due to the overwhelming burden of debt. The outcome of this reform will likely impact the state's economic stability and growth prospects for years to come.