Emergency Financial Manager Legislation Gives Too Much Power to Unelected Officials

Lansing – Senate Democrats united today in opposition to Republican legislation that would greatly expand the reach of Emergency Financial Managers in Michigan. The bills give unheard of power to these unelected individuals without any voice for local voters and with little if any oversight throughout the process.

In response to the bills’ passage on a party line vote, the Democratic members issued the following statements:

Senator Morris Hood III (Detroit):
“These bills are going to harm the communities they were designed to help. The fate of cities that are struggling financially will be put in the hands of an Emergency Financial Manager with little to no oversight. These bills turn EFMs into a managerial monopoly, where they can break contracts, lay off workers, privatize important services and make other decisions that will hurt our workers and damage our local economies.”

Senator Rebekah Warren (Ann Arbor):
“Michigan has a long history of local control. The Senate Republicans’ passage of legislation to vest unprecedented authority in non-elected Emergency Managers not only flies in the face of this proud tradition, but also allows these outsiders to make deep cuts to vital services without input from the community. Instead of trying to take them over, we should be finding ways to adequately fund our schools and municipalities and working with local government and school officials to help make our communities successful.”

Senator Bert Johnson (Detroit):
“Hypocrisy is running rampant through this Legislature. The sponsor of this legislation said Emergency Financial Managers should be paid more than our Governor—more than $160,000—in order to retain the best talent. This comes from the same folks claiming our teachers, police and firefighters are overpaid; why don’t we need the best talent to educate our children, protect our families and keep our communities safe—”

Senator Glenn S. Anderson:
“This legislation gives Emergency Financial Managers a vast and dangerous expansion of powers, undermining local authority and voters, while establishing little oversight to ensure that they actually help these financially strained communities. They will have the power to unilaterally send teachers packing, slash local police and fire, and receive virtually unlimited salaries that will exceed even the Governor, all on the taxpayers’ dime. The Governor’s budget will push scores of our communities into insolvency and we should be extending a helping hand, not an iron fist. We need greater accountability and oversight before we hand over the keys to our schools and cities.”

Senator Tupac A. Hunter (Detroit):
“Troubled cities and schools aren’t worried about partisan politics, so if there was ever a time to work in a bipartisan fashion to make sensible reforms to help all of our communities and schools this is the time. It’s unfortunate that Senate Republicans rejected the sensible Emergency Manager reforms offered by the Democratic caucus.”

Senator John J. Gleason (Flushing):
“The acts of this Legislature have positioned Michigan communities and schools for financial failure by cutting revenue sharing, per-pupil funding and monies dedicated to public safety. Proposals to tax pensions and eliminate the Earned Income Tax Credit will prevent individuals from spending locally. Any community or school teetering on the brink of bankruptcy will surely fall over the edge, thus assuring a politically appointed Emergency Financial Manager controlling our local communities.”

Senator Steve Bieda (Warren):
“I am very concerned for the powers this legislation would transfer to an Emergency Manager. Removing elected officials and overturning local ordinances shows no respect for the will or the rights of the voters. This draconian measure gives authority to an individual with no responsibility to the citizens of the community.”

Senator Hoon-Yung Hopgood (Taylor):
“The budget proposals being considered by this Legislature will push many of our local communities and schools into financial crisis. Emergency Managers will then be sent in to make cuts to police, firefighters and critical local service providers in our cities and increase classroom sizes in our schools. Once again our budget will be balanced on the backs of hardworking families and children.”

Senator Gretchen Whitmer (East Lansing):
“We hear talk about how jobs is far and away the number one priority for this administration, yet no job is safe when these Emergency Financial Managers have the ability to break any contract negotiated in good faith between duly elected officials and working men and women. This legislation undermines local control and gives these managers unparalleled authority to slash local service providers, reduce staffing levels, and abolish departments.”

Senator Coleman A. Young II (Detroit):
“This bill is not only a threat to democracy but if signed into law by the Governor, will put us on the road to tyranny and threaten the sovereignty of Michigan. This is an assault on the Constitution as we know it. Not only is it the annihilation of our emancipation but this bill will blow out the torch of liberty and silence the people of Michigan by taking away their most precious right—the right to vote.”

Senator Vincent Gregory (Southfield):
“It is a sad day in Michigan history when the Michigan Senate gives authority to an Emergency Financial Manager to void bargained contracts, gives them the authority to dissolve whole cities and gives the EFM the ability to be paid more than the Governor of the state.”

Senator Virgil Smith (Detroit):
“If we are not going to give our communities the financial resources they need to function, then we need to make sure that the EFM bills do not do greater harm to the long term interests of our schools and cities. We depend on our schools to educate our kids and we depend on our cities for our safety. That is the bedrock of a functioning society.”

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