emergency manager

Flint
12:19 pm
Sat December 3, 2011

Flint's emergency manager fires seven city staffers, cuts pay for mayor, city council

Flint emergency manager Mike Brown (file photo)
Steve Carmody/Michigan Radio

Flint emergency manager Mike Brown started the job on Thursday. Friday, he dropped the hammer.  

The Flint Journal reports Brown fired seven total level city employees. He also cut the pay of the mayor and city council and canceled future city council meetings.   

Brown was appointed Flint's emergency manager earlier this week by Governor Snyder. A state review of Flint's finances determined that the city faced a 'financial emergency'.   

Flint is millions of dollars in debt.    

Late Friday, Flint mayor Dayne Walling issued a statement praising his four appointees removed by Brown: "It was an honor for them to choose to serve with me through very difficult times and, on behalf of the Flint community, I thank them for their service."

Politics
6:14 pm
Fri December 2, 2011

Organizers step up petition effort to repeal emergency manager law

PA 4 opponents rally in Detroit Friday
Sarah Cwiek Michigan Radio

Organizers behind a petition drive to repeal Michigan’s emergency manager law say they’re launching an all-out blitz for signatures.

Their campaign ramps ups just as the state starts the process that could lead to an emergency manager in Detroit.

Opponents of Public Act Four say it violates the Michigan and U.S. Constitutions by removing local elected officials from power. They also say it’s being used disproportionately to disenfranchise African American voters.

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Politics
5:06 pm
Fri December 2, 2011

State officials launching preliminary review of Detroit's finances

The state of Michigan will conduct a preliminary review of Detroit's finances.
user andrea_44 Flickr

State Treasurer Andy Dillon announced today the state's intention to launch a preliminary review of Detroit's finances. The review will commence next Tuesday, according to Dillon's office. This post is being updated with information as it comes in.

Update 5:06 p.m.

MPRN's Laura Weber reports that State Treasurer Andy Dillon said he does not see bankruptcy as an option for Detroit.

“I don’t see that in the near-term, no, because if you look at the revenues coming into the general fund, it’s a fixable issue for the city,” said Dillon. “Now the longer-term debt may present an issue that we’ll have to figure out how to tackle down the road.”

Dillon said this is the first step in a review of Detroit’s finances and does not guarantee the city will be taken over by the state, but he said because Detroit is running out of money quickly, a review is time sensitive.

3:15 pm

Mayor Dave Bing released this statement on the state's preliminary financial review a few moments ago:

"While unfortunate, this decision by Governor Snyder is not unexpected.  We believe we have the right plan to address the City's fiscal crisis and we will continue to work with City Council, our unions and other stakeholders to achieve the necessary cuts and concessions, including pension, healthcare and work rule reform. I'm confident with yesterday's demonstration of solidarity and shared commitment that we will continue to make progress.  We are committed to full cooperation with the Governor's fiscal team, who has had full access to the City's financial information and plan for months."

Update 2:49 p.m.

You can see a list of reasons why Michigan State Treasurer Andy Dillon feels a preliminary review of Detroit's finances is in order. Dillon released a "Detroit Informational Memorandum."

In it, Dillion cites that Detroit has run deficits exceeding $100 million dating back to 2005.

Annual debt service requirements in Detroit for 2010 exceeded $539 million, according to the memo.

2:15 p.m.

A day after Detroit Mayor Bing stood with other city leaders to try to head off an impending state review of the city's finances, the Governor's office announces the review:

From MPRN's Rick Pluta:

State Treasurer Andy Dillon says the state will send in teams to review the finances of Detroit and Inkster. It is the first step in the process to name emergency managers to run the cities.  But Dillon says his hope is that early intervention will help avoid that. Detroit city leaders including Mayor Dave Bing have spoken out against a state review.

In a letter to Mayor Bing and City Council President Charles Pugh, State Treasurer Andy Dillon cited the mayor and city council's ongoing inability to work cooperatively to financially manage the city; Detroit's recurring operating deficits; and the likelihood that the city will run out of cash in the spring.

Politics
3:09 pm
Fri December 2, 2011

Inkster moves closer to emergency manager

City of Inkster

The state took a big step today towards making Inkster the next Michigan city to fall under the oversight of an emergency manager.   

Governor Snyder has appointed a seven-member review team to delve deep into Inkster’s city finances. A preliminary review has already found the city is in ‘probable financial stress’.      

The city has struggled to deal with a multi-million dollar deficit. This week, the city laid off 20 percent of its police officers and the police chief announced he’s leaving too.  

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Politics
8:21 pm
Thu December 1, 2011

Detroit leaders show united front, vow to work out city's fiscal problems on their own

user steveburt1947 Flickr

Detroit Mayor Dave Bing and other city leaders stood side-by-side at city hall Thursday night, saying they’re all ready to work together.

The show of unity comes as the city scrambles to stave off a state-appointed emergency manager. Governor Snyder has threatened to send in a financial review team that would initiate that process if the city doesn’t get its act together.

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Politics
4:21 pm
Wed November 30, 2011

A conversation with Michael Brown, Flint's new emergency manager

Michael Brown was appointed as Flint's emergency manager.

Governor Rick Snyder yesterday named Michael Brown emergency manager for the city of Flint.

Brown is very familiar with Flint. He served as Flint’s temporary mayor when former mayor Don Williamson abruptly resigned. 

Michigan Radio's Jennifer White spoke with Mr. Brown about his new appointment.

 

Politics
2:55 pm
Tue November 29, 2011

Former acting mayor tapped to serve as Flint emergency manager

Michael Brown was appointed as Flint's emergency manager

According to a report from the Flint Journal, the governor has given the nod to Michael Brown, a former acting mayor of Flint, to act as that city's new emergency manager.

From the Journal:

The appointment was announced this afternoon and is effective Thursday, according to Gov. Rick Snyder's office.

As emergency manager, Brown will have wide-ranging authority to make cuts, impose fees or make other changes to overhaul city government after a state review panel found the city in a financial emergency.

Michigan Radio’s Steve Carmody adds more, reporting:

Michael Brown served as Flint’s acting mayor for six months in 2009, between the abrupt resignation of former mayor Don Williamson and the election of his successorDayne Walling.

In naming Brown as Flint’s emergency manager, Governor Snyder praised his “strong track record of serving the Flint-area community” and expressed confidence in Brown’s public, private, and non-profit experience.

In a written statement, Brown said he plans to work “collaboratively” with Flint’s elected officials and community leaders. Flint mayor Dayne Walling issued a statement saying that he looks “forward to working with Mr. Brown to address the community’s priorities and to secure the City’s financial stability."

Flint is facing a multi-million dollar debt. There are now emergency managers calling the shots in Benton Harbor, Pontiac, Ecorse and the Detroit Public Schools.  

The state is also looking into a possible “fiscal” problem in Inkster.

Flint
8:16 am
Mon November 28, 2011

Naming of Flint Emergency Manager may be near

People opposed to placing Flint under the control of an emergency manager let their feelings known
(photo by Steve Carmody/Michigan Radio)

Governor Snyder this week may name an Emergency Manager for the city of Flint.   

 It’s been nearly three weeks since the governor agreed with a state review team’s finding that the city of Flint is in a fiscal crisis.    That finding opened the door to the governor appointing an emergency manager to oversee Flint city government.    

The city is struggling with millions of dollars of debt and a declining tax base.   The time for the city to file a court challenge to the finding expired over the weekend. 

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Politics
4:18 pm
Tue November 22, 2011

A conversation with Pontiac Emergency Manager Lou Schimmel

Several Michigan cities are facing the possible appointment of an emergency manager.

Lou Schimmel has served as an emergency manager in Hamtramck and Ecorse and currently works as the EM in Pontiac.

He spoke with Michigan Radio's Jennifer White about his job as the city's emergency manager and his plan for the city.

Education
12:18 am
Tue November 22, 2011

“Everything on the table” to avoid emergency manager at Benton Harbor Schools

The State of Michigan is reviewing Benton Harbor Area Schools’ finances. That’s the first step in a process to determine if the school district needs a state-appointed emergency manager. It does not mean one would be appointed for certain.

But the rumors are already flying in the community about a takeover.

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Commentary
11:41 am
Mon November 21, 2011

Emergency Manager On Hold?

There’s been a lot of speculation lately about the possibility of Detroit getting an emergency manager, something almost everybody concerned says they are against, but fear is likely to happen anyway.

If it does, the manager will have near-autocratic powers, including the right to suspend, rewrite, or tear up contracts. Some think this is a painful necessity, while others think it will be the death of democracy. There’s a possibility, however, which most people aren’t considering, which is that everything may be put on hold.

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Detroit
6:33 am
Mon November 21, 2011

Detroit schools emergency boss reports on finances

Roy Roberts, Emergency Manager of Detroit Public Schools
Photo courtesy of Detroit Public Schools

The state-appointed emergency manager of the Detroit Public Schools is releasing a half-year financial update on
the district Monday.

Roy Roberts has called a news conference for 11 a.m. to announce a six-month update and revised budget deficit projections.

In September, the district was facing a $327 million budget deficit. Its finances have been under state control since 2009.

Enrollment is about 66,000, down from 104,000 in 2007.

Detroit's schools have lost millions of dollars in state per-pupil funding as thousands of parents fled the district for city charters or suburban schools.

Election 2011
5:34 pm
Fri November 18, 2011

Results stand after Benton Harbor recount vote

The results of the November eighth election in Benton Harbor stand.

Incumbent Mayor Wilce Cooke lost the election by eight votes. That’s less than one percentage point.

During a recount this week, both Cooke and Mayor elect James Hightower picked up two votes. So the end result remains the same even though the vote count changed slightly.

“We’re not trying to say there’s any hanky-panky going on – although it could be,” Cooke said.

He’s concerned about the absentee voting process; mainly who processed the votes and who may have had access. “There’s some issues we’re pursuing that I’m not able to divulge to you; but that’ll come out eventually,” Cooke said.

The state appointed an emergency manger to take over Benton Harbor’s finances during Cooke’s second term as mayor. The emergency manager expects to have the city’s finances back on track soon. He expects to turn power back over to the new mayor and city commission within the next eight months.

Commentary
12:05 pm
Fri November 18, 2011

Detroit: The reality

Detroit Mayor Dave Bing made his long-anticipated speech this week addressing the city’s financial crisis. Even before that people were speculating as to whether the city would end up needing an emergency manager.

That speculation has increased ever since the mayor spoke, but the fact is this. There really isn’t any doubt. The city is not going to be able to succeed in righting its own finances, not under the Bing plan, anyway.

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Education
6:57 pm
Thu November 17, 2011

State takes a step in potential takeover of Benton Harbor Schools

The State of Michigan will conduct a preliminary review of the "critical and alarming financial situation" at Benton Harbor Area Schools. This is the first step in a process that would determine if the school district needs a state-appointed emergency manager. It doesn’t mean one would be appointed for certain.

Leonard Seawood has been superintendent of Benton Harbor Area Schools for a little more than a year. “When you are in a deficit like I inherited…there are no easy answers in terms to digging yourself out of this hole as a district,” Seawood said.

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Politics
10:17 pm
Wed November 16, 2011

Bing outlines dire financial picture for Detroit

Detroit Mayor Dave Bing says the city is on the verge of a financial calamity. But he insists that with tough choices all around, it can still avoid a state takeover.

Bing’s televised speech on city finances Wednesday night had a blunt message: “Simply put, our city is in a financial crisis and city government is broken.”

To avoid running out of money by spring, Bing says the city needs to do a whole range of things almost at once.

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Politics
4:57 pm
Tue November 15, 2011

A conversation with Flint Mayor Dayne Walling

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Dayne Walling was elected to a second term as Flint’s mayor last week, and since then was told his city is facing a financial emergency.

Michigan Radio's Jennifer White spoke with Walling about the situation.

Walling said he has a lot of questions about how things will unfold, and added, "the Governor and Treasurer have pledged for this to be a collaborative process, but I know that can mean a lot of different things to different individuals."

“I’m prepared to play any positive role that I can in this position," said Walling.

Mayor Walling also gave suggestions on how to work with city leaders and residents.

Detroit
7:58 am
Tue November 15, 2011

Report: Detroit to run out of money by April

Detroit city skyline
Ifmuth Flickr

Detroit will run out of money in the first half of next year unless the city cuts its budget, the Detroit Free Press is reporting. From the Freep:

A closely guarded report on Detroit's finances paints an alarming picture of a city that will run out of cash by April unless officials make immediate, painful reductions that will cut deeply in to public services. The report, obtained by the Free Press, outlines some drastic scenarios that illustrate how steep those cuts must be for the city to stay afloat…

The problems are so severe and immediate, restructuring experts said, that the state may have no choice but to appoint an emergency manager with the authority to gut union contracts, sell assets, restructure the government and end nonessential services.

“The mayor plans to speak Wednesday at 6 p.m.,” about the city’s financial situation, the Associated Press reports. As the AP notes, “It's possible that Detroit's poor health could lead to the appointment of an emergency manager with sweeping authority to make changes.”

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Politics
2:33 pm
Mon November 14, 2011

Flint mayor calls for city to 'pull together'

Flint mayor Dayne Walling addresses a city hall audience after being sworn in for his first full four year term
Steve Carmody/Michigan Radio

Flint mayor Dayne Walling said at his swearing in ceremony that the city should not wait for the appointment of an emergency manager to tackle its crime and economic problems.   

“Now is the time for us to pull forward together," Walling told the city hall audience that had come to see him sworn in for his first full four year term as mayor. Walling has been Flint's mayor for the past two years after winning a special election. 

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Politics
1:01 am
Mon November 14, 2011

Flint mayor sworn into office today

Dayne Walling celebrating a primary victory in August
Steve Carmody Michigan Radio

Flint’s mayor takes his oath of office today. What happens next is up to Governor Snyder. Incumbent Dayne Walling won a four year term as Flint’s mayor last week. He’s already been serving as Flint’s mayor for the past two years, since winning a special election.  

The challenge then was to reduce Flint’s massive budget deficit. The challenge now will probably be to work under a state appointed emergency manager.  

On the same day Walling won reelection, Governor Snyder agreed with a state review team that Flint is in a ‘financial emergency’. The governor is expected to name an emergency manager to run the city.  

Walling has indicated he would work with an emergency manager. Though the mayor is not waiting for an emergency manager to be appointed before he makes any changes.

On Friday, Mayor Walling fired or accepted the resignations of Flint’s top city finance and economic development officials.

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