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March 1, 2013
By Mike Brownfield
The news that Governor Snyder has declared that a financial emergency exists in Detroit has raised questions about emergency manager laws in Michigan. The fact is, emergency manager laws have been around for years, and the tool has been used by Democrat and Republican governors alike to solve problems in cities and school districts across Michigan.
Fact 1: Emergency Financial Managers Aren't New
Michigan has had an emergency financial manager law on the books since 1990. The original law, Public Act 101, was signed by Democrat governor James Blanchard.
Fact 2: Democrat and Republican Governors Have Used Emergency Financial Managers
Under Democrat Governor James Blanchard, two emergency managers were appointed, and under Democrat Governor Jennifer Granholm, seven emergency managers were appointed. In fact, Governor Granholm appointed the first emergency manager for Detroit Public Schools in 2009. See the full list below.
Fact 3: Detroit Isn't the Only City to Have An Emergency Financial Manager
Emergency Financial Managers have been appointed in Royal Oak Township, Hamtramck, Highland Park, Flint, the Village of Three Oaks, Detroit Public Schools, Pontiac, Ecorse, Benton Harbor, Highland Park Schools, Muskegon Heights Schools and Allen Park.
Fact 4: Emergency Financial Managers Are Held Accountable
State Treasurer Andy Dillon, who previously served as the Democrat Speaker of the House, leads the effort to ensure that emergency financial managers are properly trained.
Emergency financial managers are then accountable to both the governor and the Legislature, which in turn are both accountable to voters.
Fact 5: Emergency Financial Managers Cannot Eliminate Collective Bargaining
Though an emergency financial manager can take actions to void contracts to prevent a local government from going bankrupt, new agreements with workers could still be reached through the collective bargaining process.
Statute
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Local Unit
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EFM/EM
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Appointment
Date
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Administration
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Appointed By
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Act 101
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Royal Oak Township
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Steve Smaka
George Smith
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January 1990
July 2, 1990
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Gov. Blanchard
Gov. Blanchard
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ELB
ELB
|
|
|
|
|
|
|
Act 72
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Hamtramck
|
Louis Schimmel
|
November 16, 200
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Gov. Engler
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ELB
|
|
|
|
|
|
|
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Highland Park
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Ramona Henderson Pearson
Art Blackwell
Robert Mason
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June 19, 2001
March 17, 2005
April 17, 2009
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Gov. Engler
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ELB
|
|
|
|
|
|
|
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Flint
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Ed Kurtz
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July 8, 2002
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Gov. Engler
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ELB
|
|
|
|
|
|
|
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Village of Three Oaks
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Pamela Amato
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December 1, 2008
|
Gov. Granholm
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ELB
|
|
|
|
|
|
|
|
Detroit Public Schools
|
Robert Bobb
Roy Roberts
|
March, 2009
May 4, 2011
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Gov. Granholm
Gov. Snyder
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Gov. Granholm
Gov. Snyder
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|
|
|
|
|
|
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Pontiac
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Fred Leeb
Michael Stampfler
Louis Schimmel
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March 19, 2009
July 1, 2010
September
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Gov. Granholm
Gov. Granholm
Gov. Granholm
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ELB
ELB
ELB
|
|
|
|
|
|
|
|
Ecorse
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Joyce Parker
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October 30, 2009
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Gov. Granholm
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ELB
|
|
|
|
|
|
|
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Benton Harbor
|
Joseph Harris
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April 1, 2010
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Gov. Granholm
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ELB
|
|
|
|
|
|
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Act 4
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Flint
|
Mike Brown
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November 28, 2011
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Gov. Snyder
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Gov. Snyder
|
|
|
|
|
|
|
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Highland Park Schools
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Joyce Parker
Don Weatherspoon
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May 9, 2012
October 29, 2012
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Gov. Snyder
Gov. Snyder
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Gov. Snyder
Gov. Snyder
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|
|
|
|
|
|
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Muskegon Heights Schools
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Don Weatherspoon
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April 23, 2012
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Gov. Snyder
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Gov. Snyder
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|
|
|
|
|
|
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Allen Park
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Joyce Parker
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October 26, 2012
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Gov. Snyder
|
Gov. Snyder
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ELB = Emergency Loan Board
EM = Emergency Manager
EFM = Emergency Financial Manager
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