Michigan needs a new referendum to suspend PA 436.

Emergency Manager Information (click here)

Public Act 4 of 2011, the Local Government and School District Financial Accountability Act, was signed into law by Governor Rick Snyder on March 16th, 2011. PA 4 is currently suspended, pending the outcome of a referendum placed on the November 2012 ballot. The Attorney General issued an official opinion on August 6, 2012, stating that during the suspension of PA 4, PA 72 of 1990 is reinstated. There are currently five local governmental units and three school district that are in receivership and have an appointed Emergency Manager (EM). Public Act 4 of 2011 replaced the original bill PA (Public Act) 72 of 1990. PA72 was then replaced with PA 436 of 2012. Got that? Three separate bills. The one of most interest to me is PA72.  There is an interesting aspect to the other two bills, PA4 and PA436 which defies democracy as well as application to the current economic conditions. To begin, would an Emergency Manager be the prudent thing to do in the middle of the greatest recession since the Great Depression?  No. There would be widespread application for Emergency Managers (EMS)with a huge economic downturn such as that. So, to apply EMS to a city when the economics are already altered by outside forces is opportunistic.  Opportunistic has been the case across the board with Republicans in relation to the Great Recession. They pounced on the opportunity to destroy public programs they oppose ideologically. The best example is the current attack on SSI and Medicare. Had the Clinton Surplus been applied to the gap in SSI and Medicare funding; the USA would not even be having the dialogue about these Earned Benefits today. But, rebate checks, tax cuts and two wars later the Earned Benefits of the American people are being toyed with and justified by 'economic conditions.' Not improving economic conditions, simply economic conditions and the national debt and deficit. Opportunistic. Plain and simple. Thursday, Dec. 27, 2012 (click here) LANSING, Mich. - Gov. Rick Snyder has signed several bills that strengthen communities and protect taxpayers. "These new laws recognize the vital importance of financially stable, economically vibrant communities to Michigan's future," Snyder said. "They also respect the needs of citizens and taxpayers by delivering greater oversight and efficiency. Our reinvention of government is delivering meaningful reforms that will keep Michigan on the path to prosperity." Senate Bill 865, sponsored by state Sen. Phil Pavlov, creates the tools needed to effectively address financial emergencies in local governments and school districts. If an independent review team finds a situation of financial emergency and the governor concurs, local units have four choices: a consent agreement, an emergency manager, a neutral evaluation process or Chapter 9 bankruptcy proceedings. This strengthens the current financial manager law to handle severe financial stress in some municipalities, but also takes into account voters' concerns regarding the previous emergency manager law expressed during the November election. The bill is now Public Act 436 of 2012. What really intrigues me about this mess Snyder has created. Michigan has a lot of corruption. I could into it, but, there is not enough time. Snyder is corrupt. He robbed the brain trust of Michigan for his personal vulture capitalist requirements. That aside.  What really intrigues me about this assault on democracy by Snyder is not either of his bills, but, the original one from 1990. Sec. 2. The legislature hereby determines that the public health and welfare of the citizens of this state would be adversely affected by the insolvency of units of local government, including certain school districts, and that the survival of units of local government is vitally necessary to the interests of the people of this state to provide necessary governmental services. All that is true. If there are 'units' of government in any city that are insolvent or causing insolvency that has to corrected. But, the original law is shunned by Snyder. He wants control of the entire city. It is most troubling there are so many minorities in these cities. We know in the USA, the African American communities are the hardest hit by economic downturns. They have their unemployment rates increase and their wealth plummet. In all honesty, how can a city dependent on property taxes ever stabilize and rebuild when they are the most PREDICTABLY effected cities in the country due to their high minority residency? So, the appropriate nature of all this reeks of corruption. Not compassion. Not any kind of emergency, but, lacking sincere leadership and intervention. 141.1212 Preliminary review by state treasurer; conditions; notice; meeting with local government; informing governor of serious financial problem. (click here) This page of the PA 72 lists all the reasons an emergency manager could be applied to UNITS of a government. It is a fairly straight forward and understandably this was not a draconian law intended to destroy democracy or remove a city from the map. It really wasn't designed that way. The intent throughout every reason to apply an EMS is EARLY intervention. All the dynamics of each and every provision when realized how early it can be applied is to prevent tragedy. All these provisions can be applied to a UNIT of government in the early stages of financial instability. When applied at an early stage the entire government is not effected, but, only whatever UNIT of that government was causing the threat to the entire city's financial balance. We all know the economics of Michigan have been very bad for a long time. And it is only reasonable to believe cities with larger minority populations were hit the worst in Michigan. It is a standard throughout the country. Michigan is no different. So, therefore, if the entire state is experiencing financial turmoil and ruin does PA 72 apply? No. It would not apply and it is why previous to Snyder it was not in application.  PA 72 is a UNIT law. It is not intended for a city with overwhelming financial problems. So, to assault a democratically elected City Council and Mayor and the authority they would have to correct the course of their city over time as the entire state recovered, or in the case of 2008 the entire nation, is unconstitutional. The law doesn't apply. PA 72, if still in force and used out of context, would be racism. The root of the problem does not belong to the city or UNITS of the city alone, it is a greater problem the entire of the USA faces. Even today. That is why previous to Snyder's EMS Dreamscape this law was not being used. In application of an entire city it removes sovereign authority of local government to respond to their own recovery. It places FAUX priorities on the city's assets. I propose that is what PA 436 does. It removes the sovereign authority of the local government to respond to changing economic conditions AND INSTEAD places the city assets (which are necessary to build on in a recovery) on the auction block. Instead of stopping the financial failure of the city, it guarantees it. PA 72 was intended to be benevolent as a necessary measure to prevent the financial failure of the entire of a city. It was early intervention and it could be said it was an early intervention law because cities with larger minority populations lose their financial footing easier and quicker than other cities. They lose their footing on a nation wide basis. That is a fact, so the Michigan PA 72 law was a way of identifying a slippery slope and stopped it. PA 436 removes sovereign authority of cities struggling to recover but unable to at the same rate as other cities in the State of Michigan and since 2008 the nation of the USA. Sovereign local authorities are the best places to decide what will enhance a city's economic recovery. LOCAL ECONOMIES, PEOPLE. So, to completely disarm a city from authority and sell off its' assets to simply pay bills when it has suffered the same dynamic as the entire country is unconstitutional. A law that destroys the ability of a city to recover is unconstitutional. A State cannot pass laws that destroys cities. it can't do that and get away with it. PA 436 needs to be challenged in a court of law ASAP and another referendum to end the law immediately drawn up to suspend this one as well. All this needs to be done and the EMS from Atlanta can go home without a paycheck. PA 72 will be reinstated as soon as the new referendum is drawn up and on the ballot. PA 72 cannot be applied to an entire city because it is a unit law. Therefore, Detroit and all the other cities can have their sovereign local governments back to do what every other city in the nation is doing. Every other city in the nation is sending lobbyists to DC to find money and make it work.