It’s hardly a secret that newspapers aren’t doing very well these days. Over the decades, they’ve been gradually replaced as the nation’s universal mass medium by television.
Newspaper’s biggest economic blow came, however, with the flight of advertising revenue to the Internet. This, combined with an ever-more busy public bombarded by more and more media choices, has badly wounded what was once a thriving industry. And, left us in danger of being dangerously uninformed as well. Ann Arbor, for example, no longer has a daily newspaper at all.
The problem is perhaps most acute in Detroit, where, twenty-five years ago, the Detroit News and Free Press sold a combined total of one point three million newspapers every day.
That number has declined ever since. Audited figures show that as of last September, they were down to a combined circulation of less than four hundred thousand, a number that has dropped further since then.
To save money two years ago, Detroit’s newspapers embarked on an experiment in which they would deliver the papers only three days a week, and asked consumers to read them online or go to the store and buy it the rest of the week. This really hasn’t worked.
Groups across the state are planning protests today over Governor Rick Snyder’s budget proposal. Demonstrations are planned for cities including Grand Rapids, Lansing, Kalamazoo, and Ann Arbor. Protestors will include state workers, small business owners, and retirees, the Associated Press reports:
A press release issued by the liberal group Progress Michigan says Snyder's proposal is "an attack on Michigan families and their future." Snyder says his budget represents "shared sacrifice" and puts Michigan on the path to a better future because it solves the state's budget ills. His $45.9 billion proposal includes spending cuts for schools and would eliminate many personal tax breaks while slashing business taxes. The state is facing an estimated $1.4 billion shortfall.
Japanese Earthquake, Tsunami Threaten Car Exports
Some car plants in Japan remain closed as a result of last week’s massive earthquake and tsunami. Japanese carmakers say it’s too early to know if the disaster will hurt their exports to the U.S., Tracy Samilton reports. Toyota, Nissan, Subaru and Honda suspended most of their operations in Japan after the disaster.
March Madness
The NCAA Division I men’s basketball tournament bracket was released yesterday. Seven Big Ten teams made the cut. No. 8 seed the University of Michigan will play No. 9 seed Tennessee on Friday. Michigan State University earned a No. 10 seed and will play No. 7 seed UCLA on Thursday. Oakland University also made the tournament. Oakland will play the Texas Longhorns on Friday.
More protests are expected this week at the state Capitol as lawmakers continue to debate new rules for cities and school districts that run into trouble paying their bills.
The controversy is one of the first big showdowns between Republicans and Democrats this year over government reforms.
Unions and Democrats have pretty much given up on trying to stop the measures. They’ve turned their efforts to limiting its scope to protect bargaining rights, as well as cap emergency manager salaries, and require them to periodically meet with the public – so far without any luck.
Doug Withey is a Teamsters bargainer.
“Every community in the state, every governing body has an open meeting. Have the public involved with that. Nope. Not reasonable. Vote it down.”
But Republicans like Senate Majority Leader Randy Richardville say an emergency takeover would be the last option after all else has failed.
“The intent of the legislation is to get into an emergency situation and fix it before it becomes a catastrophe.”
Governor Rick Snyder says his goal is not more state takeovers.
“Anytime you have an emergency manager come in, that’s a failure point. The best answer is to put in a better early-warning system – to figure out how to work with communities before they reach the point of needing a financial manager because a lot of things can be done in those earlier stages to avoid the issue and that’s the best answer.”
Right now, Richardville, Governor Snyder and Republicans have the numbers they need in the Legislature to prevail.
A teachers’ union leader says a proposal in the Legislature to give emergency financial managers sweeping control over school districts is a bad deal for educators.
The Michigan Senate approved the bills this week that would dissolve union contracts and eliminate collective bargaining rights at the local level if an emergency manager were put in control of a school district, city or township.
David Hecker is vice president of the Michigan division of the American Teachers Federation union. He says many financial problems can be better addressed through collective bargaining.
Hecker appeared on public television’s “Off The Record.”
“It either eliminates or severely undercuts collective bargaining – so it hurts the middle class – and it also hurts education. Because, you know, the problem with the EFM bill is if it’s an issue – and it’s an issue, there are districts and there are cities who are in financial difficulties – but you just don’t throw out a solution. You figure out what the problem is, and then you craft a solution.”
“We rather Governor Snyder work with us, we all work with the Legislature, and we work in support of communities, we work in support of the middle class, we work in support of our students. We think the EFM bill works against communities, works against the middle class, and is not good for our students. So Governor Snyder has a choice. We rather work together than become Wisconsin.”
“If people think we need this hammer to come to the table to say ‘yeah, health care costs are increasing, we have to address it. The school district’s in debt, we have to address it,’ we already do that at the table. You know, what do you say to a secretary of Detroit Public Schools who makes 22-thousand dollars a year and just took a three-percent pay cut?”
The House is expected to vote on the emergency financial manager bills next week. Governor Rick Snyder called for the reforms in his State of the State address.
As protests continue in Madison over a controversial bill removing collecting bargaining rights from some public unions, attention is drifting to Michigan.
Governor Snyder has responded to reports and protests by saying that he does not want to follow Wisconsin Governor Scott Walker's example, reiterating in an interview with WXYZ that he is eager to solve problems--including the specifics on $180 million dollars worth of concessions from state employees--through the collective bargaining process, and that he "was hired to solve Michigan's issues."
But whether Governor Snyder wants attention from national media or not, it is happening, including a ten-minute report on last night's Rachel Maddow Show.
But what does the law actually say? What is an Emergency Financial Manager? How are they appointed?
And if the title wasn't a clue, the explanation is a little long.
From the FAQ:
What triggers the Act?
Among the conditions specified in the Act are the failure by a unit of local government to pay creditors, the failure to make timely pension contributions, and payless paydays. In addition, certain officials, or residents, of a unit of local government may request a preliminary review under the Act, as may either the State Senate or House of Representatives.
What happens when the Act is triggered?
The State Treasurer conducts a preliminary review of the financial condition of the unit of local government. Once that review is concluded, the State Treasurer reports the result to the Governor. If a serious financial problem is found to exist in the unit of local government, the Governor then appoints a financial review team to conduct a more detailed review of the financial condition of the unit of local government.
What is the purpose of a Financial Review Team?
...[A] Financial Review Team...conduct[s] a more detailed review of the financial condition of the unit of local government. A Financial Review Team generally has 60 days (generally 30 days in the case of school districts) to complete its work and file its report. A Financial Review Team report must reach one of the following three conclusions:
-- A serious financial problem does not exist in the unit of local government, or
-- A serious financial problem exists in the unit of local government, but a Consent Agreement containing a plan to resolve the problem has been adopted, or
-- A local government financial emergency exists because no satisfactory plan exists to resolve the serious financial problem.
If the third conclusion is reached, or if a unit of local government signs, but subsequently violates a Consent Agreement, then a financial emergency is determined to exist in the unit of local government and an Emergency Financial Manager is appointed.
Who appoints Emergency Financial Managers?
For units of local government other than school districts, Emergency Financial Managers are appointed by, and serve at the pleasure of, the Local Emergency Financial Assistance Loan Board, which consists of the State Treasurer, the Director of the Department of Management and Budget, and the Director of the Department of Energy, Labor and Economic Growth. Emergency Financial Managers for school districts are appointed by the Governor, subject to the advice and consent of the State Senate
New Powers for EMFs
But a bill passed by the Michigan Senate this week expands the Emergency Financial Managers' powers to include ending union-approved contracts. Holland radio station WHTC reports:
After days of debate and protests, the State Senate passes a bill to give more power to emergency financial managers appointed to cities or school districts. The 26-to-12 vote, which followed party lines, will allow emergency managers to cancel workers union contracts.
Democrats have said passing the bill would undermine collective bargaining in the affected communities or schools, while Republicans contend the legislation would help target municipalities or districts before their financial problems reach critical levels.
Six localities or school districts are currently affected by the law. From the Chicago Tribune:
The current state law related to emergency financial managers is affecting about a half-dozen local communities and schools at this time. Only Pontiac, Benton Harbor, Ecorse and the Detroit Public Schools have state-appointed emergency financial managers in place.
The bill has passed the House and the Senate and is on its way back to the House, where approval is required for some minor changes.
A Washtenaw County judge is trying to broker an agreement that would allow the state and two counties to collect back child support and restitution from hundreds of women, while still protecting their identities.
More than 500 women were part of $100 million settlement from the state because they were sexually abused while in Michigan prisons. Attorneys for the state and Oakland and Wayne counties want to know whether any of them owe child support or restitution.
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