Detroit's Emergency Financial Manager Takes Over: 'Dangerous Precedent'?

 
• By: Jenée Desmond-Harris/The Root

Monday is bankruptcy attorney Kevyn Orr's first day on the job as emergency financial manager for Detroit, the largest city in the country to come under state oversight. He's tasked with taking over the finances of the city and developing a plan to tackle its fiscal crisis.

But not everyone is welcoming the "turnaround specialist." A rally protesting Orr's appointment was set for 11 a.m., CBS Detroit reported this morning. Plus, a group led by prominent Detroit pastors has expressed fierce opposition to his post and the Michigan emergency-manager law that allows it.

On Friday the Rev. Jesse Jackson called for mass protests, calling Orr's appointment by the state and his power to neutralize a sitting mayor and City Council, end or renegotiate labor contracts and sell off city assets a "dangerous precedent.”

Read more at CBS Detroit.

Sharpton:Detroit appointing emergency manger is insult to democracy

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Michigan Democratic Party Statement on Gov. Snyder Appointing Kevyn Orr as Detroit’s Emergency Manager

From Michigan Democratic Party:

LANSING — The Michigan Democratic Party released the following statement today in response to Gov. Rick Snyder appointing Washington lawyer Kevyn Orr as Detroit’s emergency manager.

“Governor Rick Snyder and Lansing Republicans have deliberately starved our communities of billions in revenue, while giving corporate special interests a huge tax break,” said Michigan Democratic Party Chair Lon Johnson. “Snyder and Lansing Republicans are forcing an unnecessary, hostile takeover as a solution to the problem that they themselves created. Meanwhile the democratic rights of Detroit’s citizens are being trampled to protect the interests of Snyder’s wealthy CEO friends and their lobbyists.

“Just yesterday, a Bloomberg report revealed that Wall Street banks have reaped nearly half a billion in fees from the city of Detroit. Now Snyder is making sure Wall Street continues to get their handsome cut, while services dwindle to nothing and assets are sold off for a song.

“Let’s not forget that a mere six months ago the voters of Michigan tossed out the emergency manager law, only to have Lansing Republicans re-enact it during lame duck. It’s not just Detroit voters who are being snubbed with this move; it’s every Michigan voter that showed up on Election Day and rejected the emergency manager law.

“Kevyn Orr may have an impeccable corporate background, but if Rick Snyder wants him to run Detroit, he should move to Detroit and run for mayor.”

To view the Bloomberg story, click here:

http://www.bloomberg.com/news/2013-03-14/only-wall-street-wins-in-detroit-crisis-reaping-474-million-fee.html

Michigan emergency Mangers undermine recovery as well democracy

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Michigan power grab

REDEFINING GOVERNMENTAL 'POWER GRABS'.... If there's one thing we know about the conservative Republican ideology, it's that they love local control and they loathe governmental power-grabs.

Except, that is, when they believe the opposite.

Recent developments in Michigan and its new Republican administration are so astounding, I literally didn't believe the reports when they first came out. And yet, shocking though they may be, those reports are true and represent a genuine assault on a credible system of government.

Newly elected Republican governor, Rick Snyder, is set to pass one of the most sweeping, anti-democratic pieces of legislation in the country -- and almost no one is talking about it.

Snyder's law gives the state government the power not only to break up unions, but to dissolve entire local governments and place appointed "Emergency Managers" in their stead. But that's not all -- whole cities could be eliminated if Emergency Managers and the governor choose to do so. And Snyder can fire elected officialsunilaterally, without any input from voters. It doesn't get much more anti-Democratic than that.

Except it does. The governor simply has to declare a financial emergency to invoke these powers -- or he can hire a private company to declare financial emergency and take over oversight of the city. That's right, a private corporation can declare your city in a state of financial emergency and send in its Emergency Manager, fire your elected officials, and reap the benefits of the ensuing state contracts.

You might be thinking, "C'mon, that can't be right." I'm afraid it is. Michigan's new Republican governor is cutting funding to municipalities, and if they struggle financially as a consequence, he will have the power to simply take over those municipalities if he believes he should.

And once Snyder does take over these local governments, by virtue of his own whims, he can impose a local dictator -- called an "Emergency Manager" -- who will have the authority to undo collective bargaining agreements, scrap contracts, and even undo the results of elections.

And if that weren't quite enough, the local dictator, at the behest of the new Republican governor or a designated corporate ally, can even "disincorporate or dissolve" an entire municipal government -- effectively making a local government disappear -- without any input from the public whatsoever.

I'm completely serious.

And by the way, the Tea Party crowd -- those folks who worry about excessive government overreach and power-grabs -- thinks all of this is just great.

One of the Republican state lawmakers who supports this effort characterized the plan as "financial martial law" -- and as far as he's concerned, that's not a criticism, that's a defense for this little scheme.

All of this, by the way, is being pushed by Gov. Rick Snyder (R), after just two months on the job. He's the same rookie governor who's desperate to slash corporate taxes in Michigan, while raising taxes on the working poor.

All of those voters who thought it'd be a good idea to elect a bunch of Republicans in 2010? I really wish they'd done just a little more homework before heading to the polls.

M.C.L Comment: The reason the Michigan Repugs are moving so fast to pushed this crap through is because once normal people see what these bastards are doing they will vote out their majority next year. So why not do the corporations bidding now and catch a job as a lobbyist after these people lose their re-election bid.

Senate Republicans ignore the people and move anti-union and anti-Democratic EFM bills

From Communications Guru/ The Conservative Media

LANSING – Despite thousands of workers packing the Senate gallery on Tuesday morning chanting “kill the bill,” the Senate Republicans ignored them and moved the anti-union and anti-Democratic Emergency Financial Manager (EFM) package of bills to the third reading. The bills can be voted on as early as Wednesday and sent to the Governor for his signature. The EFM package, House Bills 4214-4218, will make it easier for financially troubled municipalities and school districts to be taken over by an emergency financial manager, and the bills give the EFM almost dictatorial like powers. The bills take the power and authority out of the hands of the people legally elected by the voters and places it in the hands of a person appointed by the governor and the Legislature, and it allows the EFM - which is why Republicans have placed the bills on the fast track - to terminate contracts negotiated with labor unions in good faith. Many of the financial challenges municipalities face are due to mandates and budget cuts not of their own creation, but rather those that were imposed on them by decisions made in Lansing. The Governor’s proposed budget cuts will push those barely hanging on over the edge, from financial stress to financial emergency. Senate Democrats put up 17 amendments and two substitutes to the main bill to make it more transparent, but they all were defeated along mostly party lines, with the exception of one. Sen. Tupac Hunter, D-Detroit, introduced an amendment that would not allow the EFM to be paid no more than the Governor, Michigan's highest paid elected official at $177,000 a year. Amendments are voted on via voice vote unless the chair is not sure of the outcome or someone makes a request for a record roll call vote. The Chair, Sen. Make Jansen, R-Gaines Twp., said the Hunter amendment failed despite the obvious loud yes votes. When a record roll call vote was called for, Republicans joined with Democrats and the amendment passed with a vote of 19-18. But about 45 minutes and 12 amendments later, the Senate Republicans moved to reconsider Hunter’s amendment, and it was then disapproved by a vote of 16-21, angering Democrats.

“We have an emergency financial manager in my community that makes $420,000, and this man will make a million dollars before he leaves,” said Sen. Virgil Smith, D-Detroit. “Are you really saying we can pay someone half a million dollars in a community that is financially strapped?”

Senate Democratic Leader Gretchen Whitmer, D-East Lansing, was very angry, and even though the Senate Republicans tried to gavel her down, she made her point about the basic dishonesty of Republicans, saying they have no problem making millionaire EFMs with taxpayer money, but they want to break contracts with first responders negotiated in good faith.

“We were told you were going to open it back up because more people wanted to vote for it not to defeat it,” she said.

M.C.L Comment: It's time to start the stuff the nerd in his locker movement. Starting with his Repugs sidekicks in the state house.