Clarifying what an Emergency Financial Manager can do

Jan 20, 2011

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.