Contact Form

Name

Email *

Message *

Sunday, March 17, 2013

Detroit Emergency Manager Decision

We received the following note from one of our followers:

"With apology for this off-topic post, I would like to request that you post something on Michigan's emergency manager law. Two questions: 1.) How do you feel about the fact that the voters of Michigan rejected it by referendum and yet the legislature immediately passed a bill to restore it and make it impossible for it to be rejected again by voters. Is this democracy? 2.) You call Obama a "dictator," but we haven't heard anything yet about the fact that the emergency manager (unelected) has absolute power over the city and the elected officials and voters have none. Is this democracy?"


These questions are important and reflect a discussion that has occurred in Michigan for years. The problem is that Detroit has one-third of the population that it had in the 60's but still has to provide police, utilities, street maintenance, sewage and lighting for the same area. Additionally they collect less than 50% of the property taxes they assess.  On top of this there has been mismanagement for years resulting in extreme cronyism, a culture of bribery and a lack of citizen oversight.

Detroit has had police chiefs convicted of fraud and a mayor recently convicted of racketeering as well as a long running conflict between the elected mayors and city council.  Half of the street lights are out and thousands of houses  remain abandoned or burned out.

There has been a resurrection of certain areas of the City such as downtown where GM has moved its worldwide headquarters. Another area, where GM used to be is called New Center is another area of growth as the State of Michigan took over the old corporate headquarters. Three residence areas of growth have been Indian Village, Palmer Park and the Boston Edison area are great examples of what Detroit looked like in the 20's when the city was at its zenith.

However since the 1960's the city has experienced a steady decrease in population resulting from the riots  and the attitude expressed by former Mayor Coleman Young that all "whites should hit 8 mile."  (Eight mile road is a major road dividing Detroit from the suburbs.) 

Today we arrive at a situation where the city is running a $16 billion debt and not many prospects.  This brings up the Emergency Manager law that most Michiganders believe is a last ditch effort to prevent a  bankruptcy of the City.  

In answers to the questions, the law was changed after the voters voted against it. The Legislature made the changes that had caused the voters problem with the previous one. 
Governor Snyder has been pushed into this decision by the lack of progress by Mayor and City Council.

The emergency manager (EM) will have powers that some would say are extreme, however, considering the situation, Detroit is in a major crisis. If the issues are not solved, a bankruptcy will be inevitable.  Leaving the city in the hands of a bankruptcy judge will not be any more extreme than having one other man responsible for solving the problems.

An EM will have to make many unpopular decisions including restructuring agreements with police, fire, and other unions as well privatizing services that the city provides such as lighting, sewer and water. Will he make the same decisions we would, probably not, however, as long as the outcome is positive, we will agree.

Yes, it will take away the power from the elected officials which is not a popular decision. However, due to the nature of the emergency, we do not disagree with it. 

Maybe, an example will tell you how dysfunctional city council has been in recent years.  Last year, the State offered to take over one of the "jewels" of the city, an island park named Belle Isle for a lease of 30 years. After that time, it would revert to the city.  They promised to spend millions fixing up the aquarium and conservatory as well as other structures that are highlights of the island. These buildings had fallen into disrepair and the city could not afford to make the necessary repairs or pay for their operation.

 The perceived negative part of the offer is that  city residents would have to pay an admission charge of $1 per visit/ per car or an annual fee (which would allow them to go to any State park.) The Mayor was in favor of the proposal, but city council vetoed the idea. 

When a city is facing a financial disaster, it takes extraordinary solutions. The EM is exactly that. Although it is controversial,  it the best of the few available options.

Conservative Tom






http://www.sfgate.com/news/article/Detroit-emergency-manager-warns-against-bankruptcy-4356790.php

6 comments:

  1. Thanks for the post, Tom. I guess my concern with this law is mostly about the process. Do you consider it acceptable when the voters of Michigan rejected the emergency manager law, and the legislature immediately responded by restoring it with new language to make it impossible for the voters to have a referendum on the new law? Should the Michigan legislature simply choose which laws are immune to voter repeal? Is this law going to be under review by the Michigan Supreme Court?

    --David

    ReplyDelete
  2. U.S. Constitution (Article 4, Section. 4)...

    "The United States shall guarantee to every State in this Union a Republican Form of Government...."

    Do we have a "Republican Form of government" when the voters of the state reject the emergency manager law, and the legislature immediately responds by restoring it with new language to make it impossible for the voters to have a referendum on the new law? Hasn't this already gone to the Michigan Supreme Court?

    That's even before we get to the question of whether replacing the community's elected officials (mayor/city council) with an absolute dictator is a "Republican Form of Government."

    You might find this interesting…

    http://press-pubs.uchicago.edu/founders/documents/v1ch4I.html

    It points out that the Founding Fathers defined "republicanism" in opposition to monarchy. Replacing representative democracy with a monarchy (emergency manager) strikes me as a something the Founding Fathers would not approve, because the EM is not accountable to the people and the people cannot reject the new law by referendum. The Founding Fathers held that sovereignty is rooted in the people, not a king. Or, as Abe said, "government of the people, by the people, for the people." Most constitutional scholars say that is the intent of Article 4, Section 4 of the constitution. What do you say?

    --David

    ReplyDelete
  3. The republican form of government does not refer to anything under the EM law.

    The EM law has not gone to the Michigan Supreme Court.

    So if a community is no longer able to pay its bills, pay its employees or provide basic services, if you do not have an EM what do you do?

    Don't say go bankrupt. That would cost millions on top of debt the city can not afford. Additionally, if the city went bankrupt, the citizens of that city would not have representation either.

    ReplyDelete
  4. Here is an interview that makes it pretty clear what happens in a bankruptcy for a city.

    http://www.npr.org/2012/07/11/156621232/what-happens-when-a-city-declares-bankruptcy

    ReplyDelete
  5. Yes, it does make it pretty clear. San Bernardino did their bankruptcy, but they did not abolish their city's form of representative government. They still have an elected mayor and city council (who hire and set policy for their city manager).

    By contrast, the Michigan emergency manager usurps all political power from the city's elected officials, and has total control over the city with no accountability whatsoever to voters. Absolute dictatorship.

    BTW, the Michigan Supreme Court did hear the case, and rejected the appeal last month. I'd like to see this go to the U.S. Supreme Court. I believe it is unconstitutional under Article 4, Section 4, which was intended to preserve a republican form of government -- yes, even in bankrupt cities like you have in Michigan. In effect, the Michigan legislature has created a monarchy by law -- exactly what Article 4, Section 4 prohibits.

    --David

    ReplyDelete
  6. Tom, meet San Bernadino's elected officials…

    http://www.sbcity.org/officials/default.asp

    This elected city council represented the citizens of their city before, during, and after the bankruptcy proceeding. If the citizens don't like the work they are doing, they can vote them and the mayor out of office. Representative democracy.

    If the citizens of Benton Harbor, Flint, Detroit, etc. don't approve of the decisions of the emergency manager, they can't get rid of him. Now, even the voters of the state can't get rid of this law by state referendum. He has total power and immunity from all voters locally and statewide. A sovereign king.

    --David

    ReplyDelete

Thanks for commenting. Your comments are needed for helping to improve the discussion.