A Bridge Too Far!

OUR EDITORIAL

A step too far

Emergency financial manager shouldn’t have the right to dismiss elected officials

   Michigan needs to pump up its emergency financial manager law, but the reforms passed by the House are a tad too strong. Some of the muscle must be taken out before a final bill is signed by Gov. Rick Snyder.

   Revisions to Public Act 72, which gives the state the right to take over the finances of a local community or school district if it approaches insolvency, were requested by Snyder to give the emergency financial managers more flexibility to fix the finances of the troubled governments.

   The House bill passed last week hits most of the targets. It would give the manager powers similar to those of a bankruptcy judge or court-appointed receiver. The manager would be able to rework or break employee contracts, as well as agreements with vendors, to put the local units on a sounder financial course.

   It would also give the manager authority over most decision making, rendering any elected bodies irrelevant during the course of the emergency. That would be particularly useful in Detroit, where Robert Bobb has been thwarted by the Detroit Board of Education in bringing reform to the public schools. The House bill also makes it easier for the state to intervene early to avoid an escalating crisis. That’s all necessary and works toward the goal of getting the emergency financial manager in and out of a local government as quickly as possible, and restoring local control. But the House bill becomes problematic when it treads on the democratic process. Aprovision in the bill would allow the manager to dismiss the mayor, city council, school board or other elected officials deemed incompetent to manage finances. That’s beyond our comfort level. First, it exposes the rescue process to political maneuvering. The manager could be used as a tool to remove from office officials who don’t share the politics of the ruling party in Lansing.

   But more worrisome is that it strips citizens of their voting rights. The people have the right to elect their representatives, even if they elect incompetent ones. It’s not the state’s job to shield them from the consequences of democracy.

   The state can step in to avert a crisis or to fix one, but it can’t claim the right to pick and choose who will ultimately lead the local governments.

   The provision is well-intended and aimed at preventing a community or school district from falling back into fiscal disarray as soon as the manager leaves.

   While the manager is in place, he or she should not be subject to the meddling of the local officials who created the mess.

   But once the job is done, it should be up to the people to decide who will govern their communities.

   The Senate is working on a similar bill. It should drop the offensive provision, which should be reconciled with the House version so Snyder receives a measure that gives the emergency financial manager the power to fix finances, but not to undo the votes of the people.

Detroit Schools’ Emergency Financial Manager Robert Bobb