Michigan Senate OKs new emergency manager bill

Published on NewsOK Modified: December 13, 2012 at 11:28 pm •  Published: December 13, 2012
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LANSING, Mich. (AP) — The Republican-led Michigan Legislature cleared the way Thursday for GOP Gov. Rick Snyder to sign a replacement for an emergency manager law struck down by voters, delivering another punch to Democrats still reeling from this week's rapid passage of right-to-work legislation limiting unions' power.

On the final hours of the legislative session that capped an acrimonious week in the state capital, the Senate approved the legislation mostly along party lines. It contains key provisions from a law rejected in November but includes more choices for local school districts and communities deemed by the state to be in a financial emergency.

The House passed the bill Wednesday night. Snyder spokeswoman Sara Wurfel said the bill is a priority for him to sign but there's no timetable.

The new version proposed by Snyder and GOP legislative leaders requires financially troubled governments to choose from four mandatory options: Accept an emergency manager, undergo bankruptcy, enter into mediation or join the state in a partnership known as a consent agreement — similar to the current one involving Detroit.

Critics say the options menu is a false choice, because each is trip-wired to ensure the same thing that voters rejected at the polls: state-imposed oversight.

"We are not asking for anybody's help," said Detroit Democratic Sen. Virgil Smith. "This is control, takeover, gimme-what-you-got legislation. ... And I'm tired of this."

The legislation also includes a $770,000 appropriation to cover managers' salaries, a provision that would prevent a second defeat at the polls because spending bills are legally shielded from referendums.

As with the rejected law, the manager would have the power to change or cancel contracts, but local officials also could develop an alternative plan provided it generates equal financial savings. Should a local government choose an emergency manager, the state would pay for the manager, and local officials would have the option of removing the manager after one year and with a two-thirds vote of its governing body.

The state has been operating since under a previous law that gives managers fewer powers, but leaders argue it's inadequate to deal with failing cities or schools.

Snyder and other backers of the plan argue adding the choices and other steps to provide more local input respects the will of the voters because it doesn't force an emergency manager on any local government.

Democrats see it as a blow to democracy because it subverts local control. They say it's the same as the rejected law with an opportunity for distressed communities to "pick their poison."

Democratic Sen. Bert Johnson, from the Detroit enclave of Highland Park, offered several changes that failed to garner support, including one that would have enabled a consent agreement between the state and financially struggling local government that's "binding to both parties" and lasts for no more than two years.

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