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Monday, Michigan lawmakers will continue discussing ways to balance the state's budget and prevent another government shutdown.
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Emergency Managers in Pontiac PDF Print E-mail
Written by John Joyce   
Wednesday, 17 October 2012 15:43

In examining the effectiveness of Michigan's Emergency Financial Manager Law, one city to look at in detail is Pontiac. On March 19, 2009, the Local Emergency Financial Assistance Loan Board appointed Fred Leeb as the EFM (Emergency Financial Manager). Then in 2011, Rick Snyder appointed Louis Schimmel to be the new EM under Public Act 4, Snyder's revised version of the law.

When Public Act 4 was put up for referendum in August of this year, the Board appointed Schimmel as EFM under the original law. However, the city council sought to remove the position of EFM, believing that the referendum suspended both the old and new form of the law (as reported by MLive). The six member council voted unanimously to remove Schimmel, but Pontiac Mayor Leon Jukowski vetoed their measure. Jukowski had long advocated for an EFM and was disappointed by the council's special meeting, saying that "it's going to demonstrate to the governor's office that we're completely incapable of governing ourselves...the City Council has acted in an unlawful manner, in my opinion". This tension between the council and the mayor (who serves as an advisor to the EFM) has been noticed by residents of the city, who feel that the EFM diminishes their participation and involvement in the decision-making process.

The decisions that the EFM have made during the past few years have had a large impact on Pontiac. An Emergency Manager Report released on December 31st, 2011 details the initiatives and policies implemented by Schimmel in his first three months on the job. One of these policies was to shift responsibility for firefighting services to the Charter Township of Waterford, which saves three million dollars a year (according to the manager's report). A press release from the Michigan Township Association describes the move as a success, saying that "This is a new era in the state where more townships are providing services to cities. It shows great fiscal responsibility by both units of government"(as quoted in the Waterford Township release). Measures such as this one show why having an Emergency Manager can be a good thing, because without his authority in getting something like this done, it might not have happened so quickly or effectively. The fact that it was able to come to pass in such a short timeframe and with such support from both fire unions shows is a great example of how the community can get behind an EM's plan and stories like this are the reason why the EM law was created. Where problems come up, however, is when the expansive powers of the Emergency Manager interfere with policies that the council feels strongly about, as Schimmel made "dramatic moves to balance the city budget" without the council's approval, according to the Detroit Free Press. They believe that this violates the democratic process, as they were elected to do a job that they no longer have the authority to do.

http://www.mlive.com/news/detroit/index.ssf/2012/08/pontiac_city_council_attempts.html

http://www.pontiac.mi.us/pdf/Emergency%20Manager%20Report%2012-31-12.pdf

http://www.mrgmi.com/WaterfordTownship_Release-F.pdf

http://www.freep.com/article/20120813/NEWS03/120813077/Pontiac-city-council-votes-to-reclaim-power-over-emergency-manager

 

 
Who is Next? Emergency Managers and Local Government Fiscal Stress PDF Print E-mail
Written by Evan Gross   
Saturday, 12 May 2012 11:41

There are two court cases this week that are being closely watched by policymakers and citizens on both sides of the Emergency Manager debate. As the Emergency Management program continues with Muskegon Heights School District getting an Emergency Manager and the Pontiac School District starting the process with a preliminary review, a basic premise of the law is being tested. The argument being presented to the State Appeals Court is that the Treasury's Review Teams, which have gone into fiscally stressed cities and investigated deficits, finances, and operations without public oversight and in many cases recommended the use of an emergency manager, violate the Open Meetings Act. The Open Meeting Act broadly applies to all commissions, councils, or other decision making groups that operate under the authority of state or local government, and prohibits such groups from meeting in secret in most cases. In the court cases, the State has argued that the Review Teams play only an advisory role, and do not make any final decisions, only "recommending" different courses of action. However, the lawsuit brought by Highland Park School Board Member Robert Davis alleges that Review Teams, which have been used for over a decade in Michigan, serve more than an advisory role, and have decision making authority under the Emergency Manager Law that would subject it to Open Meetings Act provisions. The governor, after all, cannot appoint an emergency manager without the Review Team's determination, and the Review Teams have the power to work out (or not work out) binding consent agreements with local units. These determinations can have serious effects on local units and citizens from operational changes to losing local control completely. The case is currently in the appeals process after a circuit court judge ruled that Review Teams must comply with the Act and meet publically.

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Policy Brief: Who's in Charge? PDF Print E-mail
Written by Evan Gross   
Thursday, 29 March 2012 17:27
April: It is now finally crunch time for Detroit. On Wednesday, Governor Snyder held a town hall meeting in Detroit to discuss what could turn out to be the defining issue of his term in office. The City will be in severe threat of bankruptcy unless some agreement with the State is worked out to address the shortfall. The story has made the newspaper headlines from Boston to San Francisco this week. Here in Michigan, Detroiters have been waiting for some time for a Consent Agreement that would be worked out between the City and State. We are expecting a deal soon detailing large scale restructuring with the City borrowing millions of dollars to keep afloat under authorization from the State.
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Downtown Development Authority Farm Market Legislation PDF Print E-mail
Written by Kathryn Rundblad   
Monday, 27 February 2012 18:14

In April of 2011, the Michigan Legislature was introduced to House Bill 4531; a piece of legislation, that, if enacted, would allow Downtown Development Authorities across the state to borrow and spend money to develop and improve local agricultural markets. For some areas this could mean a broadening of a current farmer's market program to draw more business and attention to local crops and products, and for others could be a much larger project involving building new facilities and creating programs, like farmers markets, from the ground up. Being that agriculture is important to our state's economy, this would seem to be a good idea, though it could prove to be rather costly in some cities.

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Policy Brief: Pontiac and Detroit PDF Print E-mail
Written by Evan Gross   
Monday, 30 January 2012 06:33

On their Friday night broadcast, NBC Nightly News featured the City of Pontiac in a special report on municipal fiscal crisis. Pontiac has been under emergency management by the state for nearly three years, losing 10% of its population in the last decade as the city’s employment base, and life, has largely dried up. The City reported a property tax revenue decline of $2.6 million last year (for FY2010), and to add insult, currently owes over $1.8 million in tax refunds to GM. [1] "In a struggling city synonymous with the American car, a fire sale,” reports Kevin Tibbles for NBC News, “Today in Pontiac, Michigan, you can buy the police station, library, golf course, cemetery, even city hall… so far, nothing's sold." [2] The city website has a message that reads “If any person has a suggestion how to address the deficit in a different manner, please submit those suggestions in writing at any time to the Emergency Manager.” [3]

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