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Showing posts with label emergency manager. Show all posts
Showing posts with label emergency manager. Show all posts

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