Infographic: Emergency Powers in the Hands of the People

By Mike Brownfield | December 06, 2012


Emergency Manager Infographic

The Local Financial Stability and Choice Act -- A Whole New Way to Solve Financial Emergencies

PROBLEM: Some of Michigan's municipalities and school districts are sinking in debt. There are schools that have struggled to keep their doors open, cities that can't keep police on the street, and hardworking teachers and other public servants who haven't been paid.

SOLUTION: New tools that let local governments step outside the box and take action.

WHAT IT'S ALL ABOUT: Emergency Powers in the Hands of the People

In November, Lansing heard the voice of the people, and their message was loud and clear. They weren't happy with Michigan's emergency manager law -- a.k.a., Public Act 4 -- and they wanted a change.

So we started over from scratch, tore the engine apart, and built a new emergency manager law in line with what the people want. The basis of the new law is just that ----- it's all about putting power in the hands of local communities, giving them the tools they need to step outside of the box and take action to solve their financial emergencies.

Here's how the new emergency manager law works

Step One: Is There An Emergency?

What do the facts say? Is there a severe problem? Local officials can appeal the finding.

Step Two: Local Officials Decide

If a financial emergency is found, local officials can decide how to move forward -- and they have four options.
1) Consent agreement
2) Bankruptcy
3) Mediation
4) Emergency Manager

Step Three: Emergency Actions Taken

If the local government decides on an emergency manager, a financial plan will be proposed to get the local government back on its feet. Local officials will review the emergency manager's decisions along the way and have the ability to propose alternative solutions.

Step Four: Problem Solved

No matter which path the local government chooses, the goal is the same: Get things back on track and restore local control.