7/29/2019 Emergency Manager: HOT TOPIC!

1/2

Our homes. Our streets.

HOT TOPIC:Emergency ManagerWe are

District 6

What is Emergency Management?BELLE ISLE BOATHOUSE, 1905

In 2011, the Michigan legislature passed PA 4, a law which gives the Gover-nor of Michigan sweeping powers to oversee all aspect of city government,or school district if the entity is in financial hardship, through appointment ofan Emergency Financial Manager.Under PA 4 the EFM had the power to:1. Cancel all the contracts that the city has approved2. Basically erase all collective bargaining agreements that have been

done with the unions3. Eliminate or merge entire city departments4. Remove or replace the pension board

In 2012, 81% of Detroit voted to repeal of PA 4. Only weeks later, the Michiganlegislature rewrote the law and passed PA 436 during the lame duck session.Through PA 436, Emergency Managers could be appointed to municipalities,school districts, water authorities. The Detroit EM was appointed March 2013.Like PA 4, PA 436 gives state-appointees sweeping powers, but also givespower to:1. Grant no-bid contracts over $50,0002. Transfer city-owned property to other units of government3. Adopt a model charter or model charter provisions after a budget has

been adopted

Why are so many people in Detroit against the EM?Bankruptcy

Although many believe bankruptcy was years in themaking, it poses serious threats: cuts pensions, leadsto layoffs & outsourcing thus devastating Detroitworkers. Many dont know retired police & firefight-ers dont get Social Security. MI Attorney GeneralSchuette said the plan to cut pensions violated the MIConstitution. The EM and Jones Day law firm, con-tracted to manage the bankruptcy, are forecasted to

spend over $200m in taxpayer money to manage thebankruptcy while Detroit has seen a $700m revenuesharing cut over 10 years from the State .

PrivatizationPrivatization, simplified, is the outsourcing of city-owned services to private companies in part orcompletely sold off. This creates several possible sce-narios that could be bad for Detroit residents includ-ing: increased cost for public services, lack of ac-countability and contractor oversight, potential di-minished quality of public services, lower wages anddecreased benefits for public workers, and decreased

environmental protections. In 1999, Atlanta Georgiaprivatized its water system under a 20-year contract,only 4 years later, the city cancelled it.

DemocracyDue to the Emergency Manager law, over 50% ofBlack voters in Michigan no longer have the right todemocratic representation in their local government.This undermines the very principles of Americandemocracy. Some equate a state-appointed official asa dictator with no accountability.Furthermore, the Charters of municipal governmentsare equal to a constitution for a city. The fact that

one person can eliminate it, in part or wholly, byadopting a model charter gives voters the signal thattheir votes dont count.

7/29/2019 Emergency Manager: HOT TOPIC!

2/2

References: PA4, http://www.legislature.mi.gov/documents/2011-2012/publicact/htm/2011

-PA

-0004.htm. PA 436, http://www.legislature.mi.gov/documents/2011

-2012/publicact/pdf/2012

-PA

-0436.pdf.

Huffington Post, http://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.html. In the Public Interest,Ask the Right Questions Before Privatizing,

www.inthepublicinterest.org. Free Press, http://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filing. MLive, http://www.mlive.com/news/detroit/index.ssf/2013/08/detroit_bankruptcy_fees_at_128.html. Building Movement Project [2013] Guidance Summary for Charter of the City of Detroit.

VOTE AND HOLD THE COUNCIL ACCOUNTABLE

This is the first time in about 100 years that the City of Detroit has electionsby District giving Detroiters more local power over their council members.

Yet the Detroit primary elections on August 06, 2013 turned out only about18% of all Detroiters registered to vote. We need to do better. Regardless ofwhat the Governor, the Emergency Manager and their lawyers say, democracystill matters. The City of Detroit general election will take place on November05. Make sure to cast your vote, ask your friends and neighbors to vote too!Although the powers of the City Council are limited under Emergency Managerthey will be asked to take a vote on the Emergency Manager 18-months afterhis appointment. City Council members decisions can impact crime, jobs, edu-cation and other city services. We anticipate that in August of 2014, the CityCouncil will cast their vote whether or not to continue under Emergency Man-agement.Ask your candidate: What is your position on the Emergency Manager? Howwill you vote on the EM? Is that reflective of the will of the people of Detroit,81% of whom voted to repeal PA4 in November 2012?

PROTECT THE CITY CHARTERThe City Charter of Detroit is the constitution for the residents of Detroit. Eachtime the Charter is amended, voters must approve it. This makes this docu-ment very powerful. Some of the provisions of the Charter include:1. Protection against privatization and outsourcing, the City shall provide by

ordinance for a process by which the City shall act prior to any determina-tion or action to enter into any agreement, by which a non-governmentalperson or entity provides services [ Sec 6-307]

2. Accountability measures for City government including: The IndependentBoard of Ethics consisting of 7 City Residents not elective officers, appoin-tees, or employees of the city [Sec 2-106.8]; Board of Police Commission-ers to be elected by voters, 1 from each District and 4 Mayoral appointeeswith City Council approval [Sec 7-802]; Transportation Advisory Commis-sion composed of 7 members from the 7 City Districts [Sec7-1102]; Com-munity Advisory Councils per district to improve citizen access to city gov-ernment, composed of 5 elected and 2 appointed per district [Sec 9-101].

PA 436 gives EM powers to undermine the City Charter, and democracy.

GOVERNANCEDetroiters have managed, cleaned, mowed, protected people, land, homes and streets even in the absence of City services.As all taxes sales, income and property go towards the stewardship of our resources, we have contributed to the govern-ance of those resources, and should have a say to how those are governed and funded. Parks, lights, transit, land, water, ed-ucation, streets, garbage, work to contribute to the citys collective health and the good welfare of people and neighbor-hoods and should be held in the common trust, democratically and publicly controlled. All representatives, elected or ap-pointed, should support this and a fair share of city funds to District 6.

Detroit Emergency Manager, Kevyn Orr[right] has said Detroit has long-termdebts of at least $18 billion. The bank-ruptcy process could take a year ormore, but U.S. Bankruptcy Judge Ste-ven Rhodes first must find that Detroitis eligible.

Source: Huffington Post, 7/25/2013

The pensions for Detroit's retirees av-erage just over $18,000 a year. Thatmeans many AIG executives got a larg-er bonus [during the bail out] fromtheir bankrupt company in 2009 thanDetroit workers will collect over their

whole retirement. Dean Baker, Centerfor Economic and Policy Research

Source: Huffington Post, 8/26/2013

http://www.legislature.mi.gov/documents/2011-2012/publicact/htm/2011-PA-0004.htmhttp://www.legislature.mi.gov/documents/2011-2012/publicact/htm/2011-PA-0004.htmhttp://www.legislature.mi.gov/documents/2011-2012/publicact/htm/2011-PA-0004.htmhttp://www.legislature.mi.gov/documents/2011-2012/publicact/htm/2011-PA-0004.htmhttp://www.legislature.mi.gov/documents/2011-2012/publicact/htm/2011-PA-0004.htmhttp://www.legislature.mi.gov/documents/2011-2012/publicact/htm/2011-PA-0004.htmhttp://www.legislature.mi.gov/documents/2011-2012/publicact/htm/2011-PA-0004.htmhttp://www.legislature.mi.gov/documents/2011-2012/publicact/htm/2011-PA-0004.htmhttp://www.legislature.mi.gov/documents/2011-2012/publicact/pdf/2012-PA-0436.pdfhttp://www.legislature.mi.gov/documents/2011-2012/publicact/pdf/2012-PA-0436.pdfhttp://www.legislature.mi.gov/documents/2011-2012/publicact/pdf/2012-PA-0436.pdfhttp://www.legislature.mi.gov/documents/2011-2012/publicact/pdf/2012-PA-0436.pdfhttp://www.legislature.mi.gov/documents/2011-2012/publicact/pdf/2012-PA-0436.pdfhttp://www.legislature.mi.gov/documents/2011-2012/publicact/pdf/2012-PA-0436.pdfhttp://www.legislature.mi.gov/documents/2011-2012/publicact/pdf/2012-PA-0436.pdfhttp://www.legislature.mi.gov/documents/2011-2012/publicact/pdf/2012-PA-0436.pdfhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.mlive.com/news/detroit/index.ssf/2013/08/detroit_bankruptcy_fees_at_128.htmlhttp://www.mlive.com/news/detroit/index.ssf/2013/08/detroit_bankruptcy_fees_at_128.htmlhttp://www.mlive.com/news/detroit/index.ssf/2013/08/detroit_bankruptcy_fees_at_128.htmlhttp://www.mlive.com/news/detroit/index.ssf/2013/08/detroit_bankruptcy_fees_at_128.htmlhttp://www.mlive.com/news/detroit/index.ssf/2013/08/detroit_bankruptcy_fees_at_128.htmlhttp://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filinghttp://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.htmlhttp://www.legislature.mi.gov/documents/2011-2012/publicact/pdf/2012-PA-0436.pdfhttp://www.legislature.mi.gov/documents/2011-2012/publicact/htm/2011-PA-0004.htm