Tagged: Public Act 4

Roy Roberts, the state-appointed emergency financial manager for Detroit Public Schools, will keep his job after the Michigan Supreme Court rejected a lawsuit attempting to remove him.

The Supreme Court refused to overturn an earlier decision by the Court of Appeals ruling that Roberts’ office remains in effect under Public Act 72—the state’s emergency financial manager law of 1990.

The lawsuit was brought by Robert Davis, a union activist and school board member in Highland Park.

The state House has approved a measure that would replace the emergency manager law that voters rejected last month.

Supporters of the measure say it gives local governments and schools more choices than Public Act Four. That law was rejected by voters last month.

The options now would include coming to a consent agreement with the state, mediation, an emergency manager, or bankruptcy.

Republican state Representative Al Pscholka sponsored the original emergency manager law.

“It is a significant difference from Public Act 4, because it allows the local elected officials to have a choice,” Pscholka said.

Democratic state Representative David Nathan of Detroit said he doesn’t see a real difference between the proposal and the original law.

“I think that both of those – (Public Act) 4 and this legislation – is imposing its will on communities and not allowing the communities to be a part of the decision-making process to get them out of the struggles that they have,” Nathan said.

A provision in the bill would make the measure immune to a voter referendum, like the one that repealed the original emergency manager law.

The bill now goes to the state Senate, where a vote is likely Thursday.

A new emergency manager bill advances to the House floor after a partisan vote passed the legislation through the House Local, Intergovernmental and Regional Affairs Committee.

The Detroit Free Press has more:

In November, Michigan voters will decide the fate of Public Act 4 of 2011 (PA 4)—the controversial emergency manager law.

PA 4 is the latest of three Michigan laws that define the state’s ability to appoint emergency managers to oversee financially distressed local governments.

Under the law, emergency managers have the power to modify and terminate existing contracts, and in some cases, collective bargaining agreements.

Since August 8, when the Board of Canvassers placed Proposal 1 on the ballot, PA 4 has been suspended while awaiting the statewide referendum.

Detroit police officers have won a day in court—and the temporary suspension of new contract terms that were set to go into effect in the coming week.

The case’s legal outcome could have major implications for Detroit’s consent agreement with the state.

Mayor Dave Bing imposed new contract terms on most city employees, including police, last month.

Those changes included a 10% pay cut, and throwing out old work rules—which led the department to implement new 12-hour shifts for officers.

Public employee union leaders are ecstatic that a referendum challenging the state’s emergency manager law will be on the November ballot.

They’ve fiercely opposed the law in large part because emergency managers have the power to alter or throw out collectively-bargained contracts.