emergency manager

Commentary
1:25 pm
Thu March 10, 2011

Emergency Financial Managers

Nobody in Lansing was neutral yesterday when the Michigan senate completed passage of new, tougher Emergency Financial Manager legislation on a straight, party line vote.

State Senator Phil Pavlov said this is needed to maintain “vital services, such as public safety and education,” when a city or a school district is in desperate financial straits.

This reform, he said, is necessary to allow steps to be taken “to protect public interests and the public’s money and strengthen local control and accountability.” His fellow Republicans all agreed.

But if you talked to any of the Democrats, they sounded like this was the equivalent of Mussolini seizing power.  “An unfair and unjustified power grab,“ Senate Minority Leader Gretchen Whitmer called it. One of her colleagues said it went way too far, “and was going to damage our communities and our schools.”

Well, you could say that it is nice to see that our time-honored tradition of bitter partisan divisions is alive and well, but I think the opposite. We’ve had four sterile years of that in Lansing. I think we’d all be better off if this could have been a bipartisan bill.

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Politics
1:46 pm
Wed March 9, 2011

Michigan Senate passes controversial emergency manager bill

The Michigan Senate passed the bill that around 1,000 union members loudly asked them not to pass.

From the Detroit News:

Legislation that would allow emergency financial managers to throw out union contracts and overrule elected officials in financially distressed municipalities and school districts was approved in the Senate today.

The measure passed 26-12 along party lines in the Republican-controlled chamber. Similar bills passed in the House in late February. The chambers must now agree on a final version to send to Gov. Rick Snyder for his signature. More than 1,000 union members demonstrated opposition to the bills Tuesday, chanting loudly outside the chamber doors as senators worked through details of the legislation.

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Politics
4:44 pm
Tue March 8, 2011

Unions clog Capitol over emergency manager bill

Teachers protest in Lansing on February 26th, 2011. There were more union protests today.
MEA

More than a thousand union members crowded into the state Capitol today.

They were protesting a proposal to give emergency financial managers more control over cities, townships, or school districts.

The labor movement is upset the bills would eliminate collective bargaining rights and dissolve union contracts.

The gavel reverberated in the Senate chamber as protesters in the gallery cheered, breaking the rules that prohibit demonstration during session.

They applauded Senate Majority Democratic Leader Gretchen Whitmer as she condemned the proposal for not having a salary cap.

Whitmer says it does not make sense “to vote for a bill that allows an emergency financial manager to make more than our governor.”

Outside of the chamber, hundreds of workers packed the three open floors of surrounding the Capitol rotunda – a scene similar to the pictures of protestors in Madison-Wisconsin.

They screamed for the recall of Republican lawmakers who support the emergency-manager bills.

But republican lawmakers appeared unfazed by the raucous crowd, and they plan to move forward with the proposal they say will keep many cities and school districts out of financial ruin.

State Legislature
1:44 pm
Tue March 8, 2011

Protesters begin to rally in Lansing

Protestors have arrived at the Capitol Building in Lansing, MI
Matthileo Flickr

Update 1:44 p.m.

The Detroit News reports the Michigan Senate is expected to pass the Emergency Financial Manager bill despite the protests taking place in the capitol. From the Detroit News:

A bill to give broad authority to emergency financial managers to fix a governing body's finances is expected to pass in the Senate on Wednesday despite boisterous union protests that punctuated today's session.

Senate Republicans voted down more than 20 Democratic amendments as more than 1,000 union members chanted "Kill the Bill" outside the Senate chamber. Their chants were audible as the chamber debated the bill, as were the catcalls of protesters crammed into the gallery above the Senate floor.

The union members protesting the bill say it would make emergency financial managers too powerful, "allowing them to toss out union contracts, overrule elected officials and dissolve city councils and school boards."

10:59 a.m.

Protesters have arrived at the state Capitol to show their opposition to a measure that would give more power to Emergency Financial Managers. Laura Weber sent this report from Lansing:

The state Capitol is jammed this morning with a raucous group of union members and supporters who are opposed to a proposal to grant more power to Emergency Financial Managers. Hundreds of protesters are chanting "kill the bill" loudly outside of the Michigan Senate chamber as lawmakers prepare to vote on the controversial measure.

Still hundreds more are on the Capitol lawn rallying against the emergency manager bills. The package of bills would strip unions of collective bargaining rights, and dissolve union contracts, if an emergency manager was put in place to take over the finances of a struggling city, township, or school district.

The Associated Press reports there are around 1,000 people demonstrating:

...protesters are at the Capitol objecting to bills that would give broad new powers to emergency financial managers appointed by the state to run struggling cities and schools.

The Senate plans to vote on the measures Tuesday. The House passed the bills two weeks ago.

Groups opposed to legislation they consider anti-union are holding the morning rally and also are chanting inside the Capitol.

Local officials warned during a Monday news conference that the financial manager measures would take away voters' rights by removing the authority of elected school board members, mayors and council members.

Workers warn that the bills could allow financial managers to terminate union contracts.

Supporters of the legislation say it would lead to earlier intervention in financially troubled communities and schools, avoiding bigger crises.

Politics
7:50 pm
Mon March 7, 2011

Unions to protest changes to emergency manager laws

Teachers protest in Lansing on February 26th, 2011.
mea.org

Teachers, police, firefighters and other public employees plan to march on the state Capitol tomorrow.

They oppose a measure in the Senate that expands the authority of emergency managers named to run troubled local governments and  school districts.

Unions say the measures strike at their bargaining rights.

Union leaders hope for a big enough turnout to persuade Senate Republicans to delay a vote.

Unions are particularly opposed to a part of the legislation that would allow emergency managers to vacate bargained contracts.

Mark Gaffney, president of the AFL-CIO of Michigan, says that’s unfair when the state is also looking to cut money for schools and local governments:

“You’re saying to a city that it’s easy to get a dictator and you’re taking money away from that city that puts you at the point where you might need him or her.”

Republicans say the measures offer local governments early help to avert a financial takeover, but once it happens, emergency managers need crisis tools to set things right.

Scott Kincaid, a member of Flint City Council, favors keeping the law and the authority it grants emergency managers.

"These bills give them unlimited authority to do certain things that, currently, we were able to solve our problems without doing those things. The system works right now, and I’ve experienced it. And it worked very well. We had financial problems in our community and we turned them around in 18 months."

Flint was placed under an emergency manager in 2002. The city recently asked the state for the authority to sell bonds to cover a $17 million budget shortfall and meet its payroll.

The state Senate is expected to vote on the emergency management bills as soon as tomorrow.

State Legislature
6:45 am
Mon March 7, 2011

Senate ready to vote on Emergency Financial Manager bills

Capitol Building, Lansing, MI
Ifmuth Flickr

The state Senate is expected to vote this week on a proposal to give emergency financial managers more control when they take over the budgets of cities, townships or school districts.

State Senator Phil Pavlov says the purpose of the proposal is to help communities that are in financial trouble fix their problems before they have to be taken over by an emergency financial manager.

He says it sets warning signs so problems can be dealt with earlier. But he says if emergency managers do step in, they need to have total control of the situation.

“The emergency manager would be able to make some very difficult decisions, and we know that we have to have somebody with the power to do that under extreme situations."

Unions oppose the proposal because it would allow managers to throw out contracts.

Governor Rick Snyder asked the Legislature to approve the increased power for emergency financial managers during his State of the State speech.

Detroit Public Schools
7:37 am
Wed March 2, 2011

Emergency Financial Manager of Detroit Public Schools to stay on job through June

Robert Bobb, the Emergency Financial Manager of Detroit Public Schools
Sarah Hulett Michigan Radio

Robert Bobb, the Financial Manager of Detroit Public Schools, will stay on the job through June of this year. Bobb's contract was set to expire on Tuesday, but Governor Snyder has extended his contract.

A spokesperson for the Governor told the Detroit Free Press that Bobb will stay on the job through June 30th.

As the Associated Press reports:

Bobb was hired in March 2009 by then-Gov. Jennifer Granholm to fix the district's finances.

Bobb has started a number of programs to improve education and standardized test scores across the district. He also has uncovered numerous cases of theft and fraud involving district employees and vendors.

The district still faces a more that $300 million budget deficit as state per pupil funding continues to decline with the drop in enrollment.

Commentary
1:06 pm
Thu February 24, 2011

Emergency Financial Managers

If you had any doubts about how difficult the situation is for local governments these days, consider this. Even before they tackle the budget, our lawmakers in Lansing have been working hard on new emergency financial manager legislation.

Yesterday, the Michigan House of Representatives passed a package of bills designed to make it easier to appoint emergency financial managers to run troubled cities and school districts.  The legislation also gives those managers broad new powers. The Senate is expected to easily approve this as well.

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Politics
4:24 pm
Wed February 23, 2011

Protesters march again at state capitol

Corvair Owner Flickr

Protesters were in Lansing again today to speak out against several proposals in the Republican-controlled state Legislature that they say will strip unions of the rights. That includes a measure approved by the state House that would give more control to emergency financial managers appointed to run cities and townships, or school districts. The state Senate is considering a similar measure.

Nick Ciaramintaro is with the union AFL-CIO of Michigan. He told lawmakers that more power for emergency financial managers means less democracy for local governments. 

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Politics
1:48 pm
Wed February 23, 2011

"Kill the Bill!" A second day of labor protests at the state capitol

under the state capitol dome
(photo by Steve Carmody/Michigan Radio)

"Kill the Bill....Kill the Bill" shouted hundreds of municipal labor union members as protests continued for a second day at the state Capitol in Lansing. Hundreds of unionized firefighters and police officers marched on the Capitol.

They are calling on the Legislature to reject a bill that would repeal the requirement that puts local government labor disputes into binding arbitration.

Local government officials say binding arbitration leads to expensive settlements.  Unionized workers say binding arbitration is a fair way to settle disputes, and its a concession unions made in return for giving up the right to strike.   Jason Sneft is a firefighter from the city of Jackson. 

“This is probably step in a long couple years of many steps of trying to eliminate union actions.”

Drivers honked their horns in support as uniformed firefighters and police officers lined both sides of the street in front of the Capitol. The binding arbitration measure is not scheduled for a vote yet.

The House is expected to vote on another bill that would give state-appointed local emergency financial managers the power to discard union contracts.

Commentary
12:24 pm
Thu February 10, 2011

Detroit Public Schools

Robert Bobb, the emergency financial manager of the Detroit Public Schools, came to Lansing yesterday to ask for something he has to know he’s probably never going to get.

He wants the legislature to give what amounts to a loan guarantee to the company that insured the schools’ last round of borrowing. If that firm, Assured Guaranty Municipal Corporation, doesn’t get that assurance, it may block the schools from borrowing more money? Why? Because it worries DPS will go bankrupt.

Which would leave Assured Guaranty holding the bag. And it’s a pretty unpleasant bag, The schools are hemorrhaging money and students. Bobb came in two years ago, full of confident promises to eliminate the deficit. But it has only gotten worse.

Assured Guaranty insured a loan for a little over a quarter of a billion dollars the schools borrowed in 2005. Now, the schools need more. They have a new deficit of $327 million dollars.

That’s more than half their entire general fund budget. To make ends meet, Bobb says he needs to borrow $219 million next month.

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Education
11:17 am
Wed February 9, 2011

Financial Manager of Detroit schools to speak at Capitol

Detroit Schools Emergency Financial Manager Robert Bobb will appear at the state Capitol today
Sarah Hulett Michigan Radio

Update 11:15 a.m.:

Robert Bobb, the financial manager of Detroit Public Schools, has asked state lawmakers to borrow funds for the school district. The Associated Press reports:

Bobb said Wednesday during an appearance before a joint session of the state Senate and House education committees that draft legislation for his plan would be submitted within about a week.

The plan would include the state helping to guarantee the school district won't go into bankruptcy. Bobb said the district does not plan to file for bankruptcy.

Bobb said the plan would not cost the state "one dime."

Bobb said the district plans to borrow more than $200 million in March. He wants his legislation approved by April 1.

6:35 a.m.:

Robert Bobb, the emergency financial manager of the Detroit Public Schools, will testify today at the state Capitol. He'll appear before a joint session of the state Senate and House education committees.

The Associated Press reports:

He's expected to talk about the district's turnaround plan including finances and academics. Bobb was appointed as the Detroit district's emergency financial manager by then-Gov. Jennifer Granholm in early 2009. Bobb has feuded with the elected school board over control of the district.

Politics
5:46 pm
Thu January 20, 2011

Clarifying what an Emergency Financial Manager can do

Governor Rick Snyder wants the Legislature to clarify the Emergency Financial Manager's Act.

There was a dispute over how much power state-appointed emergency financial managers have when the Detroit School Board sued the state's Emergency Financial Manager for Detroit Public Schools, Robert Bobb.

They said he was exercising too much power, and the court agreed.

Laura Weber, of the Michigan Public Radio Network, filed this report:

Snyder wants the Legislature to rework the Emergency Financial Manager’s Act to provide more clarity on the powers of an emergency manager.

Robert Bobb is the emergency financial manager of the Detroit Public Schools. He says many other school districts and municipal governments are in serious financial trouble.

"There could be more in the future that an emergency financial manager should have complete authority over the operations of a school district and/or a municipality, working with their elected leadership."

Bobb says the emergency financial manager of a school district should be allowed to take over the curriculum as well as finances because, he says, money is involved in all facets of school systems.  A judge denied Bobb that authority.

Bobb says he is encouraged by the governor acknowledging the issue in his State of the State speech, but Bobb says he is not clear what is being proposed, and he is anxious to hear details.

Education
4:57 pm
Mon January 17, 2011

Detroit school board to talk about district's academic plan

A Wayne County judge says the Detroit school board has the final word when it comes to academics in the district, not state-appointed financial manager Robert Bobb.
Sarah Hulett Michigan Radio

The Detroit Board of Education will meet Tuesday to go over a proposed settlement with Robert Bobb, the district’s emergency financial manager.

A Wayne County judge ruled last month that the Detroit school board is in charge of academics for the district, not the district’s financial manager. But both sides have to come to an agreement on how to implement the ruling, since Bobb’s team implemented several classroom reforms while the lawsuit was pending.

Anthony Adams is the school board’s president. He says it’s in the district’s best interest to keep most of  Bobb’s reforms in place:

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Detroit
6:40 am
Tue December 14, 2010

Financial Manager of Detroit Public Schools to stay on job until June

DPS Financial Manager Robert Bobb
Sarah Hulett Michigan Radio

Robert Bobb, the state appointed Emergency Financial Manager of Detroit Public Schools, will stay on the job through the end of the school year.  Bobb was appointed to the position by outgoing Democratic Governor Jennifer Granholm.  Bobb's one-year contract ends in March.

According to a spokesman for Governor-elect Rick Snyder, a deal has been worked out to keep Bobb on the job through June.

The Associated Press reports:

Detroit Public Schools spokesman Steve Wasko says the extra 120 days gives Bobb more time to work out a "fully smooth transition" to the next emergency manager or a new superintendent.

City Budgets
8:44 am
Thu December 2, 2010

Pontiac closer to shutting down Police Department

The city of Pontiac is a step closer to shutting down its Police Department
Nikonmania/FLICKR

The city of Pontiac is one step closer to shutting down its Police Department and having the Oakland County Sheriff's Office take over the city's patrols.

Pontiac faces a projected $9 million budget deficit and Michael Stampfler, Pontiac's state-appointed emergency financial manager, has asked the Oakland County Sheriff Department to take over policing the city.

The Detroit Free Press reports:

A committee of the Oakland County Board of Commissioners voted 4-3 Wednesday to approve the $10-million contract. The county's Finance Committee will consider the plan today, and the full board is to vote on it Dec. 9... Undersheriff Mike McCabe said the department is expected to hire more than 60 of the Pontiac department's 70 employees and operate out of the city's headquarters in downtown Pontiac.

If approved, the Oakland County Sheriff Department would takeover on January 1st, 2011.

Politics
4:34 pm
Thu April 1, 2010

Emergency Financial Manager appointed in Benton Harbor

A state panel has named an emergency financial manager to run the city of Benton Harbor. Governor Granholm declared a financial emergency in Benton Harbor in February.

State officials say Benton Harbor's financial troubles include a deficit that has been growing by double digits. The city asked for an emergency infusion of cash from the state last month to make its payroll.

A state board named former Detroit auditor general and chief financial officer Joseph Harris to run the city, with the power to control all spending and renegotiate union contracts.

Terry Stanton is a spokesman for the state Treasury. He says drastic action is needed at times to set a city's finances right.

"The state is only as financially strong as the units within the state and, unfortunately, sometimes it's a long ways down the road before the state can step in," says Stanton.

Benton Harbor is the third city in Michigan being run by an emergency manager. The others are Pontiac and Ecorse.

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