MI Supreme Court approves EM Law referendum for Nov. ballot

Aug 3, 2012

Update Aug. 3 4:00 p.m.

State Treasurer Andy Dillon said at a press conference following the Supreme Court ruling, that putting the Emergency Manager referendum on the ballot means the state will have to revert to previous legislation about Emergency Financial Managers.

Dillon says the current Emergency Managers running cities in Michigan will all be re-appointed except for Flint Emergency Manager Michael Brown.

Brown has served as Mayor of Flint within the last five years, and is not eligible to be an Emergency Manager under the old law.

Dillon says the state will name a new Emergency Manager for Flint.

Aug. 3 1:30 p.m.

The Michigan Supreme Court has ordered the referendum on the state’s emergency manager law onto the November ballot.

A divided court ruled the ballot campaign’s petitions met the letter of the law, that the type on a critical portion of the petition was, in fact, 14 points, which is what the law requires.

The Supreme Court decision requires a state elections board to put the challenge to the emergency manager law on the November ballot.

At that point, the emergency manager law is suspended, but what happens next is not certain. In a statement today, Gov. Rick Snyder said:

While I fully support the right of all citizens to express their views, suspension of the Local Government and School District Fiscal Accountability Act may adversely affect Michigan communities and school districts mired in financial emergencies. It promises to make eventual solutions to those emergencies more painful.

One of the act’s primary goals is to identify financial emergencies before they become full-blown crises. Suspending the law limits the state’s ability to offer early intervention and assistance, and eliminates important tools that emergency managers need to address financial emergencies as quickly and efficiently as possible.

This is critical given the state’s responsibility to protect the health, safety and welfare of its citizens, regardless of the city in which they live or the school district they attend.

Snyder and Attorney General Bill Schuette say the old emergency manager law is resurrected -- the seven emergency managers currently serving will continue, but with diminished authority.

The referendum drive says otherwise – that there is no emergency manager law, and the emergency managers are out of a job.

It could take another court fight – or extraordinary action by the Legislature to settle the question.

Others have also released statements on the ruling:

  • American Federation of Teachers Michigan President David Hecker:

The Michigan Supreme Court has listened to reason and the hundreds of thousands of citizens who signed petitions calling for the repeal of PA4. Michigan voters know that the Legislature granted extreme powers to unelected Emergency Managers in this bill, and deserve the right to vote on this issue in November.

  • Detroit Mayor Dave Bing:

We respect the Michigan Supreme Court’s opinion, protecting the constitutional right of citizens to use the petition process. However, the Financial Stability Agreement (FSA) remains in effect and is still a critical tool to help fiscally stabilize the city...

The Financial Advisory Board will also remain in tact as will its oversight function to make sure the City is moving forward in restructuring. The court’s decision is not expected to affect the bond issue we need to maintain the city’s cash flow, and the city must complete the bond issue to fund city operations. The bottom line is the City’s fiscal challenges remain, and Public Act 4 was one tool to help us.  Without P.A.4, we will continue to execute our fiscal restructuring plan.

  • Flint Mayor Dayne Walling:

The legal decision does not change anything about the City of Flint's finances, however. It is my hope that there can be cooperation at all levels in the public and private sectors to address the deep rooted challenges we face in Michigan's communities. This is a time when we need to stop fighting over control and instead work together in equal cooperation.