emergency manager

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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