Tagged: emergency manager law

Detroit is at a political impasse that could lead to a financial collapse next month.

Now, one state legislator is saying Lansing should consider “all its options”—including possibly dissolving the city as a municipality.

The idea of dissolving Detroit—and effectively merging it with Wayne County—has popped up occasionally in some business and political circles recently.

But mid-Michigan senator Rick Jones is the first official to publicly discuss that as an option.

Jones says Detroit’s local leaders just aren’t dealing with the city's fiscal problems—and having the state’s biggest city file for municipal bankruptcy would be “horrible.”

“I think everything is on the table,” Jones said. “ I would be willing to consider dissolving the city, if that’s what it took.

“One of the options could be actually dissolving the city of Detroit, and putting all of their functions back into Wayne County. That is possible.”

Still, Jones acknowledges this merger scenario is “unlikely.” He says the prevailing discussion in Lansing is about bankruptcy versus some kind of state intervention.

Lawmakers in Lansing are also considering passing a revised version of the emergency manager law voters overturned in November.

Detroit faces the possibility of running out of cash in mid-December.

What do you get when you take Michigan’s past two emergency manager laws, Public Act 72 and the recently repealed Public Act 4, and add them together?

Public Act 76, of course.

That is the working title of a suggested hybrid law outlined in a state Treasury Department memo obtained by the Detroit News.

Flint’s Emergency Financial Manager says his job hasn’t changed, despite Tuesday’s vote to repeal Michigan’s controversial Emergency Manager law.

Flint voters strongly supported repealing the law. Their city is among those that have complained the most about the draconian measures the law permitted state appointees to take.

In November, Michigan voters will decide the fate of Public Act 4 of 2011 (PA 4)—the controversial emergency manager law.

PA 4 is the latest of three Michigan laws that define the state’s ability to appoint emergency managers to oversee financially distressed local governments.

Under the law, emergency managers have the power to modify and terminate existing contracts, and in some cases, collective bargaining agreements.

Since August 8, when the Board of Canvassers placed Proposal 1 on the ballot, PA 4 has been suspended while awaiting the statewide referendum.