Tagged: emergency manager

How to get by with less is an issue all levels of government are facing.

The emergency manager in Pontiac, Michael Stampfler, is proposing a combination of tax hikes and service cuts to cure the city's budgetary ills as reported in the Oakland Press:

Stampfler took to the microphone this morning for an informational meeting about the updated financial plan that could mean property taxes being raised between 6 and 8 mills.

He requested the public and elected officials submit ideas in writing if they have alternatives to what is proposed.

Stampfler released an update of his financial plan, adding $15.05 million to the budget with a combination of cuts and possible tax hikes.

An 8 mill property tax increase would mean that a property owner whose house is assessed at $50,000 would pay $400 more a year in taxes.

This past spring, the assessed value of homes in Pontiac dropped by an average of 21.4 percent, resulting in $2.6 million in lost annual revenues for the city.

Update 12:41 p.m.

The request from Governor Snyder came last Friday.

The Sugar Law Center for Economic and Social Justice, the group filing the lawsuit against the state's emergency manager law, posted the request from the Governor today.

In the request, Governor Snyder says without bypassing the other courts "this lawsuit may take years to reach finality.":

I recognize the significance of seeking a bypass to this court as provided by MCR 7.305, and only request this court's involvement after careful consideration of the urgency and importance of the issues presented here.

Snyder says the severe financial difficulties facing local governments and school districts require that the questions of constitutionality be resolved quickly.

An attorney suing the state over its emergency manager law is welcoming a lawsuit filed this week by Detroit Public Schools unions.

The three unions' lawsuit claims emergency manager Roy Roberts violated the district employees’ constitutional rights by imposing a 10% wage cut.

The imposed wage cut is the first instance of an emergency manager using the law’s new powers to seriously alter a union contract.

Three unions representing about 10,000 Detroit Public Schools employees have sued over a 10 percent pay cut and 20 percent contribution to health insurance imposed by the district.

Detroit Federation of Teachers President Keith Johnson tells The Detroit News the cuts are "an unprecedented power grab." Secretary's union President Ruby Newbold tells the Detroit Free Press employees will fight them any way they can.

The federal court suit seeks an injunction to block the changes, which were made under new state legislation expanding emergency financial managers' power.

The suit is against emergency financial manager Roy Roberts and state Treasurer Andy Dillon, who approved the cuts.

Roberts declines comment on the suit but says he's encouraged by the "overall attitude of the unions" in showing willingness to work with him.

Benton Harbor’s Emergency Manager says the city will be able to break even this budget year. Last year the city ran more than a million dollar deficit.

Emergency Manger Joe Harris says this year the city could run a $400,000 surplus.

“We’ve turned the corner. You don’t have to keep cutting if you have positive cash flow. Now we just need to expend or invest our money wisely.”

Most of those attending seemed relieved at the news. But following years of mismanagement, many residents remain skeptical.