emergency manager

Stateside
2:31 pm
Thu July 10, 2014

A deep dive into Michigan’s emergency manager law

Detroit emergency manager Kevyn Orr's term is expected to be over this fall. So what next?
Credit State of Michigan

Three years ago, only a half-dozen cities and school districts in Michigan were being run by state-appointed emergency managers.

Today, 17 are in some phase of receivership.

That proves not only cities and schools in Michigan are facing tough times, but that Governor Snyder is making vigorous use of Public Act 436, the state's emergency manager law.

Bridge magazine writer Chastity Pratt Dawsey examines the effectiveness of the law and how it measures up to similar laws in other states in a report for the magazine's latest issue. She joined us today.

We also had Lou Schimmel on the show. He's served as emergency financial manager or emergency manager for Ecorse, Hamtramck and Pontiac. Right now he's on the transition advisory board for Pontiac. Our two guests explores a number of questions:

First off, why does the appointment of an emergency manager result in such emotional responses from residents?

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Education
7:27 am
Thu June 26, 2014

Muskegon Heights schools has lots to do as charter company departs

Credit Lindsey Smith / Michigan Radio

Mosaica Education, the charter company running Muskegon Heights schools, only has a few days left in its contract. But the district still has lots to do to get everything in place for the fall.

Last night the district hired its superintendent at a special board meeting. But it still has to finalize agreements with a staffing agency to hire all of its teachers and few other vendors by Monday.

This summer it has to finish building repairs, and rearrange all the grade levels because an elementary school building will close.

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Education
5:45 pm
Mon June 23, 2014

Review team to determine what district already knows: Benton Harbor schools in financial stress

Benton Harbor Area Schools Superintendent Leonard Seawood discusses the district's finances in front of the Emergency Loan Board in April 2014.
Credit Lindsey Smith / Michigan Radio

Benton Harbor Area Schools has taken the next step in process that could result in an emergency manager.

Gov. Rick Snyder announced today his appointment of a six-member review team. The team has 60 days to determine if the district is in financial stress.

The district’s superintendent, Leonard Seawood, told state officials a few weeks ago it is. 

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Education
3:28 pm
Tue June 17, 2014

Emergency manager says new arrangement at Muskegon Heights schools will be more economical

(right to left) Superintendent Alena Zachery-Ross, Parent Team president Kaja Thornton, High School principal Carla Turner-Laws and King Elementary Principal Stacey Pallett. All the principals hope to be re-hired by the staffing agency next year.
Credit Lindsey Smith / Michigan Radio

Muskegon Heights schools’ emergency manager thinks a new setup to run the district next year will be more economical than hiring another charter company.

For the last two years, a for-profit company ran Muskegon Heights schools. But it ran into cash flow problems. The state had to give the district two cash advances this spring to pay staff and give it an emergency loan to keep schools open through the end of the school year.  

“We are in a survival mode,” Muskegon Heights schools emergency manager Gregory Weatherspoon said at a press conference Tuesday. “We will go for whatever will work and save us money and this was a cost savings to us,” he said.

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Education
8:03 am
Tue June 17, 2014

Muskegon Heights schools rejects for-profit charter bids in favor of (some) local control

Credit Lindsey Smith / Michigan Radio

Updated: Emergency manager says new arrangement will be more economical than charter school company

Muskegon Heights schools will not hire another for-profit charter company to run the district. Instead, the district plans to hire its own superintendent, a staffing company and the intermediate school district in Muskegon County to run schools for the next three years.

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Education
6:30 am
Thu May 15, 2014

Already run by emergency manager, Highland Park schools face new budget shortfall

Credit Steve Carmody / Michigan Radio

Despite a previous state takeover, a slew of surprise costs and a dramatic drop in student enrollment have led to a new budget deficit for the public school district in Highland Park.

A multi-million dollar deficit prompted a state takeover of Highland Park Public Schools in 2012. The state appointed emergency manager restructured the district’s deficit into long-term debt with over $7 million in emergency loans from the state.

The manager created a new charter school district to educate students. In 2012  The Leona Group LLC., a charter company,was hired to run the entire district for an annual fee of $780,000.

But now the district is running a deficit again.

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Education
12:04 pm
Sat April 26, 2014

Muskegon Heights ends contract with charter school company

Credit Lindsey Smith / Michigan Radio

Updated 5:10 p.m.

Mosaica Education and Muskegon Heights Public School Academy have come to a mutual agreement to end their working relationship.

“This was a difficult decision for us and our board,” Mosaica Chief Executive Officer Michael Connelly said in a written statement.

“We are very proud of the academic turnaround we were able to achieve under the leadership of Alena Zachery-Ross, our regional vice president and the superintendent for the system,” he said.

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Education
5:04 pm
Wed April 23, 2014

Benton Harbor schools in danger of not making payroll, state reopens financial review

Benton Harbor High School (file photo)
Credit Lindsey Smith / Michigan Radio

Benton Harbor Area Schools has been running a deficit since 2007. A review in 2011 found financial stress, but the district was in the middle of making changes to save money. No emergency manager was appointed under a previous version of the law.

But State Superintendent Mike Flanagan says BHAS isn’t making enough progress on the deficit.

The deficit is $14.7 million. For perspective, its revenues this year were $31.8 million.

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Education
7:22 am
Tue April 22, 2014

Muskegon Heights charter board president: Schools will stay open, “That’s a promise.”

Muskegon Heights Public School Academy school board; from left to right Arthur Scott, Carmella Ealom and Darryl Todd (file photo)
Credit Lindsey Smith / Michigan Radio

Muskegon Heights' charter school board acknowledged at a meeting Monday night it doesn’t know how it’ll fund operations for the rest of this school year. But it is reassuring the community it’ll figure something out by next week at the latest.

“As soon as we have something I will share it with you. That’s a promise,” Muskegon Heights Academy’s school board president Arthur Scott said.

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Education
10:03 am
Mon April 21, 2014

Charter school CEO says Muskegon Heights schools owes company $2 million

A loss of students has contributed to cash flow problems. (Data from Michigan Department of Education)
Lindsey Smith Michigan Radio

The Muskegon Heights charter school district owes the company that’s operating its schools a little more than $2 million. That’s according to Mosaica Education’s CEO. 

The new charter district was created in Muskegon Heights when severe cash problems prompted a state takeover of the traditional school district by an emergency manager in 2012. Now the charter district is having cash flow problems of its own.

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Politics & Government
2:52 pm
Wed March 19, 2014

Gov. Snyder declares financial emergency in Royal Oak Township

The red pin shows the location of Royal Oak Township.
screenshot Google Maps

Now that Gov. Rick Synder has confirmed that a “financial emergency” exists in the Detroit suburb, Royal Oak Township officials have seven days to decide how to move forward.

Under the state’s emergency manager law, known as the Local Financial Stability and Choice Act, there are four options the township can choose:

  • a consent agreement,
  • an emergency manager,
  • neutral evaluation,
  • or Chapter 9 bankruptcy

From the governor’s office:

On January 30th, Governor Snyder determined that a financial emergency exists in Royal Oak Township after reviewing a report from an independent financial review team. Following a hearing township officials requested, as allowed under PA 436, State Treasurer Kevin Clinton recommended that the governor confirm his determination of a financial emergency.

State officials say the township board has until 5 p.m. on Wed., March 26  to make a choice on how to move forward.

Newsmaker Interview
5:22 pm
Mon March 10, 2014

Audio: A conversation with former Benton Harbor emergency manager

Benton Harbor
Wikimedia Commons

The city of Benton Harbor is no longer in a financial emergency. Gov. Snyder today announced the appointment of a Receivership Transition Advisory Board.

Behind the turnaround is Benton Harbor’s former emergency manager, Tony Saunders II. He spoke with the host of All Thing Considered, Jennifer White.

Interview with Tony Saunders II, former Benton Harbor emergency manager.

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Economy
4:52 pm
Mon March 10, 2014

Benton Harbor's financial emergency ends

Benton Harbor's financial emergency is over, according to Governor Rick Snyder.
Google Maps

Gov. Rick Snyder says Benton Harbor's financial emergency is over.

It's been four years since the state appointed an emergency manager to run the city's finances. 

Snyder attributes Benton Harbor's success, in part, to the new emergency manager law he signed after voters repealed a former version. The law gives managers broad powers to fix the finances of the cities and school districts. 

Snyder also gives Benton Harbor's most recent emergency manager credit for building trust in the community.

Listen to the audio above.  

Economy
10:37 am
Tue February 11, 2014

Review team to look over Lincoln Park's finances

Lincoln Park Post Office, Lincoln Park MI
Andrew Jameson

LINCOLN PARK, Mich. (AP) - Governor Rick Snyder has appointed a review team to look at the finances of Lincoln Park.

The review is part of the process under state law that could lead to the appointment of an emergency manager. The review team was announced Monday.

A loan board determined last month that "probable financial stress" exists in Lincoln Park, southwest of Detroit.

Lincoln Park borrowed $2.5 million from its water and sewer fund for a pension payment in fiscal year 2013, and 46 percent of its general fund revenues in fiscal 2012 went to debt payments and retirement obligations.

The review team has 60 days to report back to Snyder.

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Politics & Government
6:20 am
Wed February 5, 2014

With $2.3 million state loan, Benton Harbor emergency manager prepares an exit

Benton Harbor City Hall pictured in the summer of 2011.
Lindsey Smith Michigan Radio

Benton Harbor’s emergency manager is planning his exit. That’s after the state agreed to loan the city more than $2 million.

When Benton Harbor officially began its financial emergency, Jennifer Granholm was the governor. During the last four years, the city has operated under three different versions of Michigan’s emergency manager law. That’s how long it’s been.

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Politics & Government
11:52 am
Fri January 17, 2014

Flint's special blue ribbon committee will continue to meet 'behind closed doors'

(file photo)
Steve Carmody/Michigan Radio

Flint’s emergency manager says a special blue ribbon committee looking at ways to better run the city should continue to meet behind closed doors.

Emergency Manager Darnell Earley appointed the 23 member committee this month. The panel will be meeting for the next several months to study how best to run the city. And those meetings are taking place behind closed doors.

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Politics & Government
2:35 am
Mon January 13, 2014

Flint City Council to start on the path to 'self-governance'

Flint city council (file photo)
Steve Carmody/Michigan Radio

The Flint City Council meets tonight, and for the first time in two years, the council will actually have something to do.

Flint has been under a state-appointed emergency manager for two years.

Current emergency manager Darnell Earley says it’s time for the City Council to get more involved in decisions.

“The way to do that is for them to begin some of their meetings on some issues that we want ultimately the council to have some impact on,” says Earley.

Recently, Earley required the City Council members to attend a session on “good governance”.

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Politics & Government
6:11 am
Tue December 17, 2013

Highland Park financial review team to meet with public

Credit City of Highland Park

This afternoon, the public will have an opportunity to address the state panel looking into Highland Park's finances. 

Governor Snyder appointed the review team earlier this month  after a preliminary review found the city in "probable financial stress."

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Politics & Government
2:57 pm
Tue November 19, 2013

Benton Harbor emergency manager asks state for loan; city commissioners reject the plan

Benton Harbor City Hall pictured in the summer of 2011.
Lindsey Smith Michigan Radio

Elected leaders in Benton Harbor are rejecting the emergency manager’s plan to take on debt to pay down the city’s deficit.

Benton Harbor has been under state control for three years. It's cut its deficit by a third; from $3.4 million in 2010 to $1.2 million, according to the latest audit.

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Politics & Government
7:38 am
Mon November 4, 2013

Benton Harbor leaders at odds over proposed income tax; voters decide Tuesday

The City of Benton Harbor has been under the control of a state-appointed emergency manager since March 2010.
Lindsey Smith Michigan Radio

A southwest Michigan city under state control will decide whether to impose a new city income tax in Tuesday's election. An emergency manager has been running Benton Harbor since March 2010.

If the proposal passes, people who live or work in Benton Harbor will pay a small percentage of their income to the city government. More than 20 other Michigan cities have an income tax.

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