When the city of Pontiac, Michigan, shut down its fire department last Christmas Eve, city councilman Kermit Williams learned about it in the morning paper. "Nobody reports to me anymore," Williams says. "It just gets reported in the press." This was just the latest in a series of radical changes in the city, where elected officials such as Williams have been replaced by a single person with unprecedented control over the city's operation and budget.
Gov. Rick Snyder put Louis Schimmel in charge of Pontiac last September, invoking Public Act 4, a recent law that lets the governor name appointees to take over financially troubled cities and enact drastic austerity measures. Under the law, passed last March, these emergency managers can nullify labor contracts, privatize public services, sell off city property, and even dismiss elected officials.
Schimmel got to work quickly, firing the city clerk, city attorney, and director of public works and outsourcing several city departments. City fire fighters were told that they would be fired if their department was not absorbed by Waterford Township's. Schimmel has proposed putting nearly every city property up for sale, including city hall, the police station, fire stations, water-pumping stations, the library, the golf course, and two cemeteries.
Williams and his six colleagues on city council have been stripped of their salary and official powers. "Nearly the whole city has been privatized," he laments.
Michigan's emergency-manager law is the centerpiece of the fiscal program enacted by state Republicans after they took over the Legislature and governor's mansion in early 2011. The law's supporters say it allows for a more efficient and nimble response to the budget crisis confronting local governments in the wake of the housing crash and near collapse of the auto industry. Critics are seeking to block and repeal what they call an illegal power grab meant to usurp local governments and break up public-sector unions.
"We haven't seen anything this severe anywhere else in the country," says Charles Monaco, a spokesman for the Progressive States Network, a New York-based advocacy group. "There's been nothing in other states where a budget measure overturns the democratic vote." Williams says emergency managers are able to enact draconian policies that would cost most city officials their jobs: "They couldn't get elected if they tried."
Benton Harbor, Ecorse, and Flint are also currently under emergency management. In Flint, the emergency manager has promised to restructure collective bargaining agreements with the city's police and firefighters unions. Benton Harbor's emergency manager banned elected officials from appearing at city meetings without his consent. Detroit, which is facing a more than $150 million budget shortfall, could be next: Mayor Dave Bing has proposed laying off 1,000 city workers and wrung concessions from public-sector unions in hopes of preventing Gov. Snyder from appointing an emergency manager.
Schimmel has pursued the most aggressive turnaround plan in the state. He says he's simply doing what elected officials have been unable to do: execute a plan for balancing the city's books quickly and efficiently. He's not there yet: The city of 60,000 is projecting a $9 million deficit for 2012. "One thing we can't do is print money," Schimmel says. "We're always chasing the dropping knife, fixing something here and losing revenue somewhere else."
With an indefinite term and a city salary of $150,000, Schimmel doesn't answer to anyone but the governor, at whose pleasure he serves. The city council can no longer make decisions but still calls meetings, which are routinely packed with angry residents. Asked by radio station WJR if the emergency-manager law hands power over to a "dictator," Schimmel sighed, "I guess I'm the tyrant in Pontiac, then, if that's the way it is."
Emergency managers aren't new in Michigan, which has been in dire financial straits for decades. Public Act 4 (officially titled the Local Government and School District Fiscal Accountability Act) beefed up a 1990 law that brought in state-appointed managers to several cities in the 2000s, without much success at stemming the flow of population, jobs, and tax revenue. Pontiac has been under some form of state-appointed management since 2009. Schimmel's predecessor laid off dozens of police officers, hired the county sheriff to patrol the city, and dismissed Mayor Leon Jukowski (whom Schimmel has rehired as a consultant paid at half his previous $104,000 salary). During that time, Pontiac's credit rating had dropped from B to triple-C. "They aren't creating revenue," Williams says of the managers. "You can't just cut your way out of a deficit."
Pontiac is not Schimmel's first clean-up job. In 2000, he was named the emergency manager of Hamtramck, where he served for six years. In 1986, a judge appointed him to oversee Ecorse's finances after the city landed in state receivership; he stepped in and privatized city services. Today, the city is back in debt, and back under state management. Schimmel concedes that the privatization strategy can backfire, but he blames inept local government. "If you don't have an overseer of the contractor, privatization can be much more expensive than in-house services," he explains.
Schimmel is also a former adjunct scholar and director of municipal finance at the Mackinac Center for Public Policy, a free-market think tank that shares his enthusiasm for privatizing public services. The center has received funding from the foundations of conservative billionaire Charles Koch, the Walton family, and Dick DeVos, the former CEO of Amway who ran as a Michigan Republican gubernatorial candidate in 2006.
In 2005, Mackinac published an essay by Schimmel that called on Michigan's Legislature to give emergency managers the power to impose contract changes on public-employee unions and "replace and take on the powers of the governing body." When Republicans gained control over Lansing in 2010, Mackinac reprinted Schimmel's article. Last March, the center celebrated when the Legislature implemented its prescriptions in Public Act 4.
The Mackinac Center claims that Michigan could save $5.7 billion annually if public employees' benefits were comparable to those of private-sector workers. Public-employee unions say cuts to public-sector jobs have only worsened the state's economic woes with foreclosures and intensified reliance on state aid programs in cities like Flint, where the jobless rate was 17.5 percent at the end of 2011. "It's an acceleration of the downward spiral," says Brit Satchwell, president of the Ann Arbor Education Association, a teachers' union. "Our goal is [to] outlaw government collective bargaining in Michigan," wrote Mackinac's legislative analyst in an email to a Republican state representative last summer. (The message was obtained by the liberal think tank Progress Michigan.)
The Mackinac Center is a member of the American Legislative Exchange Council, a clearinghouse for pro-business state legislation. (Its model bills have been linked to Arizona's anti-immigration law and Wisconsin and Ohio's collective bargaining bans.) James Hohman, the center's assistant director of fiscal policy, was one of 40 private-sector representatives at an ALEC conference in December 2010 where, according to minutes from the closed-door meeting, participants hammered out model legislation that would align public- and private-sector pay and restructure state pensions. (Jonathan Williams, ALEC's tax and fiscal policy director, did not respond to requests for comment.)
Foundations affiliated with the Koch brothers have funded ALEC's reports on state fiscal policy. The State Budget Reform Toolkit and Rich States, Poor States both echo elements of Michigan's emergency-manager law, encouraging state legislators to target public employees and identify privatization opportunities. The most recent Toolkit report recommends that states create a "centralized, independent, decision-making body to manage privatization and government efficiency initiatives." Michigan's law grants far more sweeping powers to one appointee.
Nearly one year after the passage of the emergency-manager law, its opponents are rallying to blunt its impact. The American Federation of State, County and Municipal Employees and the Detroit-based nonprofit Michigan Forward announced they've collected more than the required 160,000 signatures necessary to put the law up for referendum in November; they plan to deliver the signatures to the state on February 29.
Democratic Rep. John Conyers has called on the Department of Justice to review the law in light of the Voting Rights Act and the contract clause of the Constitution. As the state treasurer's office began a review of Detroit's finances to determine whether the city is eligible for an emergency manager, Democratic Sens. Carl Levin and Debbie Stabenow asked Gov. Snyder not to name any more emergency managers.
The Detroit-based Sugar Law Center for Economic and Social Justice has filed a lawsuit to block the law, claiming it violates the state constitution, including the home rule provision that defines residents' rights to elect a local government. Tova Perlmutter, the law center's director, says the suit isn't just about Michigan: "If we win this case, it will give other state legislatures pause before pursuing similar laws."
The Center for Public Integrity is a non-profit, non-partisan investigative news outlet.
Link to article from Mother Jones
Paul Abowd is a reporter at the Center for Public Integrity and an editor of the Detroit-based Critical Moment. The Center for Public Integrity is a non-profit, non-partisan investigative news outlet. He is finishing production on a documentary about the city's Brewster-Douglass housing projects. He tweets as @PaulAbowd.
In November, Michiganders voted the state's undemocratic Emergency Financial Manager law out of existence. But that didn't keep Snyder and legislators from claiming control of Motor City.
As of today, Detroit is under the control of a governor-appointed emergency financial manager. The Motor City is the largest district in the nation to have its voters and elected officials sidelined by this new experiment in "crisis management."
Michigan residents might be wondering how this EFM got appointed. Didn’t they roundly reject financial managers in a statewide referendum in November? Michigan residents voted to...
Harriet Rowan | PR Watch 28 Mar 2013 Hits:272 Michigan
On Thursday an emergency manager was named for Detroit, Kevyn Orr, a partner in the Jones Day law firm.
MICHAEL STAMPFLER, [email] Available for a limited number of interviews with major media, Stampfler is former emergency manager of Pontiac, Michigan. He said: “I do not believe emergency managers can be successful — they abrogate the civic structure of the community for a period of years then return it virtually dismantled for the community to attempt to somehow make a go of it. The program provides no...
Institute for Public Accuracy (IPA) 15 Mar 2013 Hits:535 Michigan
Teachers in Grand Rapids, Michigan, say that new paycheck cuts are leaving them with so little pay they qualify for food stamps. The teachers, working without a contract, have been hit by a 2011 state law that limited the amount public employers can pay for workers'health insurance. That's now being applied retroactively to these teachers, cutting as much as $300 from each paycheck.
"I am a five-year teacher who brings home $555.39 for two weeks and who currently qualifies for a Bridge Card," Ratliff told the school board Monday to loud...
Laura Clawson | Daily Kos 06 Mar 2013 Hits:487 Michigan
Michigan Governor Rick Snyder declared the city of Detroit in a state of "fiscal emergency" on Friday afternoon and announced he would appoint a emergency financial manager (EFM) for the city.
Neil Munshi reported in the Financial Times that the emergency manager "would have relatively broad powers to handle the city’s dire financial situation."
In a blog post on the decision, Snyder writes: "Working together in partnership, we can more quickly and efficiently reform the finances in the city." But the EFM role is not one of ...
Andrea Germanos, staff writer | Common Dreams 02 Mar 2013 Hits:379 Michigan
On the heels of a lawsuit filed recently in the Ingham County District Court challenging the constitutionality of Michigan’s new Right to Work law, a coalition of unions has filed a similar lawsuit in federal court. The suit, which was filed in U.S. District Court in Detroit and assigned to Judge Stephen Murphy, claims that the law violates the rights of private sector union members who are covered under federal law rather than the laws of the state of Michigan:
The Michigan AFL-CIO, the Building and Trades Council, the Teamsters, SEIU, United Farm...
Eclecta Blog 16 Feb 2013 Hits:914 Michigan
Michigan’s so-called lame duck legislature passed a remarkable 232 bills in its last week of business. Only one bill, SB 0116 (2011), the so-called Right to Work Bill, passed on Tuesday. Wednesday and Thursday were busy days with 100 and 117 bills respectively passing and Friday was a short day with 14 bills passing before the 2011-2012 legislature adjourned for the last time.
I was standing outside the east wall of the Capitol Building below the House chamber windows chanting “Kill the bill!” when the one unthinkable happened; bill SB 0116...
Ernie Whiteside | Vine Street Report 30 Dec 2012 Hits:338 Michigan
LANSING, Mich. — The Michigan Legislature approved sweeping legislation on Tuesday that vastly reduces the power of organized labor in a state that has been a symbol of union dominance and served as an incubator for union activity over decades of modern American labor history.
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Monica Davey | The New York Times 11 Dec 2012 Hits:425 Michigan
Newly elected Rep. Dave Curson moved into his spacious, sun-drenched Capitol Hill office three weeks ago, eager to savor every minute of his congressional career.
And relish it he must: In four more weeks, it’ll all be over.
The Michigan Democrat just won his first congressional race, but in a twist of redistricting he’s already a lame duck. He was elected to a mere seven-week stint, ending on Jan. 2, to finish out Republican former Rep. Thad McCotter’s term.
(PHOTOS: Thad McCotter's career)
So Curson is spending his final...
Seung Min Kim | Politico 07 Dec 2012 Hits:691 Michigan
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Ernie Whiteside 07 Dec 2012 Hits:464 Michigan
WASHINGTON — Driving from Michigan in his Ford F150 pickup truck, David Curson arrived in Washington a week ago. He set up an office last Sunday, was sworn in as a congressman on Tuesday and by Friday had logged his first votes and given his first floor speech – one that stretched a bit past the one minute he'd been allotted.
The 64-year-old Democrat has no time to waste. In six weeks, he'll be gone.
In Congress' packed lame-duck session, Curson is a curiosity.
He was one of four...
Henry C. Jackson | Huffington Post 17 Nov 2012 Hits:492 Michigan
Four congressional aides to Michigan Republican U.S. Rep. Thaddeus McCotter have been indicted for falsifying nominating petitions for McCotter's 2012 re-election bid, Michigan’s Republican Attorney General Bill Schuette announced Thursday.
"The investigation conducted by this division [Michigan Attorney General Criminal Division] revealed that the petition collection efforts were carried out by a dysfunctional congressional staff that had completely lost its moral compass," the AG's August 9 investigative report said. "Staffers functioned in a culture completely indifferent to the requirements of law, and with...
Steven Rosenfeld | AlterNet 10 Aug 2012 Hits:536 Michigan
The ballot initiative to repeal Michigan's onerous, anti-democratic Emergency Manager law will go on the November ballot, the Michigan Supreme Court ruled Friday. The repeal campaign had collected enough signatures, only to be faced with a challenge to the font size on the petitions. The State Board of Canvassers was deadlocked along partisan lines over the font size question, but at the Supreme Court, one Republican joined Democrats in voting to approve the measure's inclusion on the ballot, though on different grounds (whichEclectablog analyzes).
Four justices agreed to direct...
Laura Clawson | DailyKos Labor 07 Aug 2012 Hits:522 Michigan
In its first major action on righting the city's finances, Detroit's financial advisory board approved Mayor Dave Bing's plans Thursday for $100 million in cuts to the city's unionized workforce that his administration is expected to impose without negotiations.
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• Detroit Mayor Dave Bing tells crowd that change is on the way
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Matt Helms and Suzette Hackney | Detroit Free Press 15 Jul 2012 Hits:582 Michigan
Women’s health care should never be a political game. And yet, any time there is a contentious election around the corner, that is exactly what it becomes. Never has that been more true than right now in Michigan.
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Lisa Brown State Representative (Mich.) | National Partnership for Women and Families 29 Jun 2012 Hits:423 Michigan
Planned Parenthood's mascot, "Pillamina," is expected to be present Wednesday during a protest outside Republican presidential candidate Mitt Romney's fundraiser at the Troy Marriott hotel. Credit Planned Parenthood of Michigan
Protestors will march from the Troy Community Center to the fundraiser at the Troy Marriott hotel Wednesday afternoon.
While Republican presidential candidate Mitt Romney prepares to attend two private fundraisers in Michigan on Wednesday – including a fundraiser hosted by Gov. Rick Snyder at the Troy Marriott hotel – opponents of Romney are planning to protest the former Massachusetts governor's visit to...
Jen Anesi | Troy Patch 21 Jun 2012 Hits:608 Michigan
What good is knowledge, if no one has access to it? That was the underlying question in Troy, Michigan where Tea Party activists sought to thwart a …
There has been much talk recently about the war on women, and for good reason — the onslaught of anti-choice legislation authored, sponsored, and voted into law…
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Digital justice organizers work to move beyond questions of Internet access and work to bring control of media production and distribution to underserved communities.
Until very recently, the…
Benton Harbor, Mich., is a town of nearly 11,000 people, about 90 percent of whom are African American. It is a catalogue of the misery of the industrial…
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Listen "Live" Monday 5/20 @ 9pm EETThe Women's Room - VA Candidate Freeda Cathcart
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