emergency manager

this one

Gerald R. Ford School of Public Policy, University of Michigan / Flickr

Detroit emergency manager Kevyn Orr resigned today. Gov. Rick Snyder had a little send-off for him in Detroit. Here to discuss that and other Michigan politics is the It’s Just Politics team, Rick Pluta and Michigan Radio’s resident political junkie Zoe Clark.

Click on the link above to hear Rick and Zoe discuss Orr's resignation and Michigan politics 

Detroit Public Schools

Detroit City Council recently voted to strip Kevyn Orr of most of his powers as the city's emergency manager. Now, the Detroit Public School Board is hoping to oust their emergency manager as well.

Under Michigan's current emergency manager law, local officials can vote to strip EMs of their power with a two-thirds vote after 18 months.

The Detroit school board voted Monday evening with the belief that Jack Martin’s tenure as emergency manager would end this week.

David Lewinski Photography

Q: What do Detroit, Allen Park, Flint, and Hamtramck all have in common?

A: The cities are all under the control of a state-appointed emergency manager. 

Last month, the city of Lincoln Park joined that list. But we didn't see the protests and outcry that we saw over the appointment of an emergency manager in Detroit. 

When the city of Lincoln Park was turned over to Brad Coulter, a consultant to corporate turnaround specialists O'Keefe & Associates, the mayor of Lincoln Park, Thomas Karnes, was positive.

Steve Carmody / Michigan Radio

Voters in Mount Clemens face a difficult choice on Tuesday: Approve a big property tax increase or risk a state takeover of their city.

The recession of 2008 cost Mount Clemens more than a quarter of its property tax revenues.   The city also saw a more than 40% drop in state revenue sharing between 2000 and 2012. 

Robert Bruner is Mount Clemens' interim city manager.   He says the city has only been able to balance its books in recent years by slashing employees and by dipping into the city’s reserves which are now nearly gone. 

Lindsey Smith / Michigan Radio

A state review team is hosting a public meeting today in Benton Harbor. The six-member team is trying to determine if Benton Harbor Area Schools is in financial stress.

The Benton Harbor school district has been running a deficit since 2006. It's cut costs, but at the same time, it also has low-performing schools that need to improve test scores to meet state and federal standards. Plus, it’s lost students every year.

It’s already closed buildings, privatized support services and gotten concessions in wages and benefits from teachers.

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?

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.

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. 

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.

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.

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.

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.

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.

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.

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.

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.

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.


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.  

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.

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.

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.

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”.

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."

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.

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.

User: Brother O'Mara / Flickr

Gov. Snyder shuts down NERD fund

"Governor Rick Snyder’s controversial NERD Fund will be shut down this week and replaced. Its official name is the New Energy to Reinvent and Diversify Fund. Governor Snyder used the fund to pick up costs he says should not be paid by taxpayers," Rick Pluta reports.

Highland Park could have an Emergency Manager soon

A state board has determined that the city of Highland Park has probable financial distress. Gov. Rick Snyder will next appoint a review team which could lead to an appointment of an emergency manager. According the Associated Press, "The Local Emergency Financial Assistance Loan Board also determined there is no probable financial distress in Ecorse Public Schools. A similar hearing is scheduled Wednesday for Royal Oak Township."

Detroit City Council rejects loan deal from EM

"The Detroit City Council has rejected a proposed $350 million loan deal. Emergency manager Kevyn Orr . . . planned to use most of the $ 350 million to pay off two banks. That’s controversial because he’s proposed much steeper cuts for other Detroit creditors. Bankruptcy court Judge Steven Rhodes will have to sign off on the deal," Sarah Cwiek reports.

Lindsey Smith / Michigan Radio

Benton Harbor Emergency Manager Tony Saunders is breaking months of silence on a proposed city income tax. Saunders says he has some concerns about the proposal.

“I want to make sure we have a strong climate for business investment here. Also, you know this is one of the poorest cities in Michigan, so the last thing I want to see is our citizens being taxed once again when they’re already struggling to make ends meet,” Saunders said.

Lindsey Smith / Michigan Radio

On average, students under the state’s first fully privatized public school district are learning at a faster rate than under the old system. That’s according to data released Monday night by the charter company running the Muskegon Heights district.

Muskegon Heights schools’ emergency manager set up the charter system in the summer of 2012, when the existing district couldn’t afford to open. Highland Park Public Schools is under a similar arrangement.

Steve Carmody/Michigan Radio

Flint is getting its third emergency manager in less than six months.

Flint’s current Emergency Manager announced his resignation today.

Mike Brown is in his second stint as Flint’s Emergency Manager. Governor Snyder appointed Brown to the post in 2011.   A change in the state law forced him to step down in 2012.   Another change opened the door to Brown replacing his own replacement a few months ago.    Mike Brown also briefly served as Flint’s interim mayor in 2009 after the resignation of former Mayor Don Williamson.  

www.mich.gov

The Ford Foundation has pledged $127,000 to hire the firm Public Consulting Group to help manage Detroit's federal grant money.

The city has lost money in the past because of poor oversight of its grants, like a $400,000 lapsed grant to the Detroit Police Department for an armored personnel carrier.

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