Invoking the powers recently bestowed upon Michigan’s emergency financial managers by the Republican legislature, Joseph L. Harris, the Granholm-appointed emergency financial manager for Benton Harbor, yesterday dissolved all elected bodies within that city. (His official order can be seen below.) This, I believe, is the first instance of an emergency financial manager exercising the bold, anti-democratic new powers afforded by Governor Rick Snyder’s Emergency Financial Manager Act.
As I believe we’ve discussed here before, Michigan did have emergency financial managers prior to the Snyder administration. If I’m not mistaken, though, they generally served in an advisory role, assisting elected officials in failing communities as they went about trying to set financial matters right.* This, however, has changed under our new Governor, who proposed that emergency financial managers be given the unprecedented power to dissolve city councils, break union contracts, and otherwise place communities under what one Republican official has called “financial martial law.” (The Snyder legislation also lowers the bar considerably when it comes to selecting those communities to have emergency financial managers imposed on them.)
It’s almost certain that the new legislation will be challenged in the courts. For the time being, though, it’s the law of the land, and, unfortunately, we’re going to start seeing other communities being forced to disband their elected governments.
Here’s the “order” issued by Harris:
update: The Detroit News just posted a short article on this. Here’s a clip:
…”This is sad news for democracy in Michigan,” said Mark Gaffney, president of the Michigan AFL-CIO. “With the stripping of all power of duly elected officials in Benton Harbor… we can now see the true nature of the emergency manager system.”
Benton Harbor has struggled with a controversial trash hauling contract, lawsuits related to the contract, new competition for water services and city officials who sometimes clashed to the point that meetings dragged on for hours, Joseph said.
“I have seen for more than 30 years the mismanagement of funds and personnel in the city,” Joseph said. “Infighting has been going on for decades.”
The new powers of emergency managers include setting aside collective bargaining. Harris’ order comes before two days of training for prospective emergency managers and turnaround experts is to be held next week.
Harris, former chief financial officer for the city of Detroit, wasn’t available for comment late Friday night.
Emergency managers are in place at Detroit Public Schools and in the cities of Benton Harbor, Ecorse and Pontiac.
As we’ve discussed in the past, according to reports, as many as 170 emergency financial managers may be trained and deployed over the next year.
update: I don’t know if there are legal challenges yet, but the ACLU is looking into it.
*As it turns out, I didn’t really appreciate the full scope of the EFM program prior to the Snyder administration. While appointed EFM’s under previous administrations couldn’t dissolve local elected bodies, they were already quite powerful, and didn’t, as I suggested, just serve in an advisory capacity. With more on that, I’d suggest that you read my friend Murph’s correction in the comments section. As he states, “Old-style EFMs had the ability to sell municipal assets, implement layoffs, amend the local budget without elected officials’ approval, hire people to fill vacant staff positions, create new positions and staff them, eliminate departments within the city government, contract with adjacent communities or private entities for services, etc.” (It should also be noted that, while these EFMs under Granholm did have significant power, there were, until recently, very few of them. We expect to see an incredible increase not only in number, but in terms of their reach under Snyder.)
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In my pink slip (which is neither pink nor a slip–discuss amongst yourselves), Rob Bobb made it clear that come May 17, he will be changing parts of our contract. To his credit, he didn’t say “nah nah nah nah” and talk about how he’ll make paper hats out of it but the idea is out there. I’m sure I’ll bitch about it on FB so you’ll be the first to know after me.
I don’t understand how any Republican could philosophically ever get behind this.
I mean, I do, but I don’t.
So now were getting our Czars for real, not just in name like the ones the Teabaggers where complaining about a few months back.
The Michigan Messenger has a short story this morning. It includes the following, which might explain Patti’s pink slip.
http://michiganmessenger.com/48278/benton-harbor-emergency-manager-strips-power-from-all-elected-officials
Here’s more:
http://michiganmessenger.com/48258/bobb-will-use-new-powers-to-alter-union-contracts
Isn’t this the party that’s supposed to hate “big government”?
As I believe we’ve discussed here before, Michigan did have emergency financial managers prior to the Snyder administration. If I’m not mistaken, though, they generally served in an advisory role, assisting elected officials in failing communities as they went about trying to set financial matters right.
This is incorrect. Under PA 72 of 1990, EFMs had substantial unilateral authority over budgetary matters, and were by no means “advisory”. The legislation earlier this year added to and expanded those powers, for example allowing the EFM not just to open union contracts for re-negotiation, but to outright change them.
Old-style EFMs had the ability to sell municipal assets, implement layoffs, amend the local budget without elected officials’ approval, hire people to fill vacant staff positions, create new positions and staff them, eliminate departments within the city government, contract with adjacent communities or private entities for services, etc.
The EFM’s role has been a sort of administrative alternative to bankruptcy, and so has, since being created in 1990, had fairly broad abilities to hire, fire, sell assets, outsource, and perform other activities that we might expect out of a bankruptcy (on the grounds that the State created the local government, and so could go in and clean house itself, rather than letting the courts do it).
From a State of Michigan document on the old EFM law (Act 72 of 1990):
Somewhat relatedly, MML notes that the House’s Appropriations Subcommittee on General Government Operations passed specific language regarding revenue sharing earlier this week.
MML opposes all reductions to revenue sharing, but they make one important specific note about the difference between the House’s proposal and Governor Snyder’s. Both the Governor’s proposal and the House’s called for local communities to develop plans discussing how service sharing among communities might save money, with “good faith estimates” of potential cost savings. While the Governor’s at least implied that actions already taken could be recognized in these plans, MML notes of the House proposal,
The specific language from the House is, empahsis mine,
Now, you’ll note that still there’s no metric proposed for how “good” a plan is – just whether or not it exists. We’ll probably have to wait for next year’s budget for that shoe to drop, and for the legislature to tie revenue sharing to implementation of a plan.
The concern remains that cities like Ypsilanti, which have already done a lot of consolidation and cooperation, won’t have as much available for future actions, and if this turns into a simple checklist of items done moving forward, we won’t “score” as well, because we’re already a lot further into our checklist than many communities.
Schimmel came into Hamtramck and told the council that they shouldn’t bother to meet anymore. They eventually started meeting again and began to challenge his powers. He tried unilaterally changing union contracts, but the firefighters’ union defeated him in arbitration. In the latest round, Hamtramck officials have been lying to the state about union negotiations and the need for an EFM with broader powers. This bill addressed all those perceived problems.
Edward, yep, my principal said he got his lay off last week. I’m guessing that Bobb will do away with seniority which actually would help me since this is my “second career” and I only have 4 years with this particular district (2 elsewhere). But then what? Does everyone reinterview? I’m guessing he will also probably do away with pay increases (steps, as they are called) and possibly the extra pay for advanced degrees. Don’t know if he will take away planning periods and such…I’m not sure how deep he wants to go. All I can say is that when the non-teachers all get laid off (as they will be after April 30), someone is bound to blow and I just hope that innocent people don’t get hurt. Or hell maybe some teacher or principal is already out there, steaming up….
Murph, I’m sorry about understating the powers of the EFMs under Granholm. I will note it in the post and link to your correction. Thanks.
Peter’s point is well taken, no Republican or Libertarian thinking person should support Snyder or actions like this. The problem is, most of them have a tendency to despise cities like Ypsi and Detroit. They don’t give a damn about the people who live or go to school in those towns. It will take a long time for the effects of these kinds of policies to make their way out to Brooklyn or Adrian, rural areas that are strongholds for Tea Party thinking. This is a huge story, or should be. Nobody who believes in democracy, regardless of party affiliation, should tolerate this crap. Fundamentally un-American in every way.
I don’t think it’s at all coincidental that this starts in Benton Harbor, a city that is overwhelmingly African-American and poor. The American right has historically exhibited a consistent pattern of condescension and hypocrisy in regards to minority and poor communities, restricting the democratic rights of the poor, while demanding the right of self-determination for themselves.
I think it is disgusting that Republicans (or anyone else) would support this removal of elected bodies from power, but it is even more disgusting that no one from the right appears to be stepping up in outrage.
Bob, I agree but I’d like to take it a step further and say that they despise those city because of the race of the folks living in those cities. Not an income thing–as you said, this won’t crawl down to Adrian or wherever any time soon (and I went to college in Adrian so I know of what I speak–but a race thing, pure and simple.
so because we have been on the fucking bandwagon already w/ cooperation…we are now screwed cuz we need more cooperation. This reminds me of the NCLB…MI kept records and so went in deeper sooner than other states. No good deed goes unpunished.
I didn’t want to bring up race in my post, but, since you brought it up, Pete, I do think it’s troubling, and so do others. I just read the following at Electablog:
Of course Tea Baggers will say that race can’t be an issue as Harris is black.
Patti, I actually meant race too. I was trying to say so in a subtle manner, too subtle perhaps. I grew up not far from Adrian and race is one of the major subtexts of the Tea Party movement. It’s not the only issue, and I don’t believe partiers are all racists, but it’s a huge element.
Bob, again, agreed…not all Tea Baggers are racist but yep, it’s totally present in their movement. Let me say this about Adrian…I had two girlfriends who were black (there weren’t a lot of blacks on campus) and the three of us went to Meijers late one night. This guy walked by and–no shit–said, “N—–lover” to me. This was in about 1991 or 1992 but I can’t think attitudes have changed that much. Also a lot of racism towards the migrant workers in town.
I lived in Adrian from 2001-2008. I don’t think there is any more racism in Adrian than in other parts of Michigan, but then I consider Michigan to be a very racist area.
I am shocked Patti! Adrian has a Meijers?!
They’ve had one for the past 30 or 40 years.
Adrian has the same population as Ypsi.
Adrian also has good thrift stores and one of the best weekend farmers markets around.
That’s totally true. The farmer’s market in Adrian is vastly superior to any other I’ve been to in SE Michigan.
I live pretty close to Adrian (Tecumseh) now, and they are one of the cities on the distressed list that might be facing an EFM soon. Agreed that that area is pretty racist (it’s been a culture shock after living in Ypsi for so long), but with that being said, Adrian does have a pretty significant Hispanic population. Even Tecumseh, at my son’s kindergarten round up on Saturday had a Spanish speaking translator, which was pretty amazing to me that the schools there would be so culturally sensitive. (Thank goodness!)
Local (Ann Arbor) blogger Chris Savage, of “eclectablog,” has been doing some really great reporting on the occupation of Benton Harbor — including a post today that explains why Benton Harbor may have been chosen to pilot the new law based on reasons other than strictly its financial condition.
The post also provides links to some of of the area’s local news coverage, including a video clip highlighting residents’ reactions to the new EFM during the most recent BH City Commission meeting.
http://www.eclectablog.com/2011/04/mi-gov-rick-snyders-takeover-of-benton.html
Here’s a great article on the motivation behind Benton Harbor’s takeover:
http://www.dailykos.com/story/2011/04/19/968278/-MI-Gov-Rick-Snyders-takeover-of-Benton-Harbor-tied-to-shoreline-developmentwhat-Rachel-missed
Reports are that the Benton Harbor City Commission is continuing to meet and do business, despite an “order” by the State-appointed “Emergency Manager,” that claims to prohibit them from doing so. Apparently, one of their first orders of business was to declare the State takeover of their city “unconstitutional.” That is, until their new EM got wind of it …
According to a local radio station, WSJM:
“Benton Harbor Emergency Manager Joseph Harris tells us that he plans to issue an order rescinding this week’s city commission vote on a resolution to declare Michigan’s emergency manager law unconstitutional. Harris says that the vote has no legal validity, and notes that it was in violation of his directive to the commission that it may not vote on anything, other than to open and close meetings, and approve minutes. He tells us that he has not decided to go as far as lock the commissioners out of city hall, but he will send them a cease and desist order regarding further votes on such resolutions.”
How gracious of unelected bureaucrat Joseph Harris that he has SO FAR decided not to lock the City’s legal, rightful and democratically-elected officials out of their own City Hall.