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untanglingwebs
El Supremo
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Flint won't have access to some options in new emergency financial manager law
By Ron Fonger | rfonger1@mlive.com
on December 27, 2012 at 6:15 PM, updated December 27, 2012 at 9:52 PM
FLINT, MI --
The new emergency financial manager law signed by Gov. Rick Snyder Thursday, Dec. 27, will give more authority to local officials in financially troubled municipalities and school districts in the future, but not in cities such as Flint, which are already overseen by state-appointed executives.
While four top Flint officials said they are still reviewing the new law to determine its impact here, a state Department of Treasury spokesman said the city is grandfathered from its provisions because the governor already has declared a financial emergency.
The new law, which takes effect March 27, gives municipalities and school districts found to be in financial distress the choice of four independent approaches to resolving their fiscal crises, including a consent agreement, chapter 9 bankruptcy, mediation or emergency manager.
If local officials decide on a state-appointed emergency manager under the new law, they would have the power to approve certain decisions and develop "alternative solutions" to generate financial savings.
Two parts of the new law that will eventually affect Flint City Hall: The state will pay the full salary of emergency managers starting March 27, and local officials will have the ability to remove a manager after one year on the job with a two-thirds majority vote by the city council.
Other municipalities and school districts in the same boat as Flint: Allen Park, Muskegon Heights School District, Highland Park School District, Benton Harbor, Ecorse, Detroit Public Schools and Pontiac.
Flint emergency financial manager Ed Kurtz, City Administrator Mike Brown, City Council President Scott Kincaid, and City Attorney Pete Bade said they need more time to assess exactly what the new law will mean here.
Brown said he believes the emergency financial manager is the best solution for Flint's troubled finances but said some other municipalities and school districts could benefit from alternatives like a consent agreement.
"I felt all along (that an emergency manager is) better than the bankruptcy route," Brown said. "I did think that the state needed to have some type of option" in the new law.
Brown could be reinstated as emergency financial manager for a second time here after the new law takes effect. In August, Snyder replaced Brown with current emergency financial manager Ed Kurtz, when a voter referendum suspended Public Act 4, leading to the revival of the old emergency financial manager law, Public Act 72.
A provision in Public Act 72 prohibits former city employees from serving as emergency managers. Brown fell into that category because he served as Flint's temporary mayor in 2009.
But the new law does not prohibit former employees from taking the emergency manager job.
Kurtz said last week that he would have no problem stepping aside and letting Brown take over again if Snyder wishes.
Brown said today that he "would be open to serving" in that capacity again.
"Clearly, it's the governor's decision," he said. "I'd abide by the governor's decision."
City Council President Scott Kincaid said today that he still has questions about how the new law will apply to Flint compared to communities entering state financial oversight for the first time.
Kincaid said Flint will be worse off with the new law.
"We'd have been better off under (Public Act) 72 and Ed Kurtz instead of the new law and Mike Brown," Kincaid said. "Ed Kurtz, to me, is a better emergency financial manager than Mike Brown ever thought of being."
Michigan voters repealed the state's old emergency manager law when they rejected Proposal 1 on the November ballot. The new law includes an appropriation making it immune to referendum. |
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Thu Feb 21, 2013 2:17 pm |
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untanglingwebs
El Supremo
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"While four top Flint officials said they are still reviewing the new law to determine its impact here, a state Department of Treasury spokesman said the city is grandfathered from its provisions because the governor already has declared a financial emergency. "
Just exactly what provisions are we grandfathered from and what is the real impact? The administration is proceeding as though Flint will fall under the new law. what is the total impact? |
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Thu Feb 21, 2013 2:20 pm |
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