Massachusetts lawmakers filed legislation late Thursday that would dissolve the Hampshire Council of Government.
Sate Senator Jo Comerford, one of several co-sponsors, said the council has more liabilities than assets.
"It did not have income necessary to maintain the kind of expenses it was incurring," she said. "So very shortly, the Hampshire Council of Government will be out of money. It is unable to sustain itself. So we had to take action."
The proposed law is designed to ensure that health benefits continue for former employees and retirees of the council. It also addresses retiree pensions.
Comerford said the bill also calls for selling the Hampshire County Courthouse.
"The legislation conveys the Hampshire County Courthouse to the state with the provision that the city of Northampton has first refusal in the sale."
The legislation also says the courthouse grounds will "remain open to the public."