About a thousand protesters gathered on the state Capitol lawn today and they say there will be more people joining them throughout the week.
They are protesting many budget proposals from Governor Rick Snyder and in the Legislature, including a plan to tax pensions.
Hundreds of people from AARP chanted loudly in opposition to Governor Snyder’s proposal to tax pensions to help end the budget deficit.
Many people held signs that read: “Recall Governor Snyder,” and “Recall The Nerd.”
Jeanette Stang held a sign that read “One-Term Nerd.”
Stang says her husband worked in an auto plant for 37 years, and now they have trouble making ends meet with increasing medical expenses and living off of their pension. Their Flint home is up for sale, and both of their adult sons have already moved out of state:
"Our sons both would not come to Michigan. They said Michigan has gone to pieces...Michigan used to be a beautiful state, and Michigan has really gone downhill…All he wants to do is keep taxing the little guy—tax these bigwigs that have their yachts and have their trips and everything else. Let the people who earned this money and worked hard all their life have their pensions and quick taxing us to death."
Snyder says seniors use government services just like all other taxpayers, and should be taxed on their pension income accordingly.
More protests coming
Labor movement protests at the state Capitol are expected to get bigger and louder as the week goes on and the Legislature votes on controversial issues.
The House is expected to give final approval to a package of bills that would give emergency financial managers more control over struggling communities and school districts, and strip control from local unions.
The Republican-led state Senate on Tuesday approved a bill by a 24-13 vote that would repeal the item pricing requirement... Retail trade groups support the change, saying the current law results in higher prices. The revised regulations would require retailers to post an item's price where it can be clearly seen but would not require price tags on individual items.
Unions say grocery store jobs would be lost if item pricing is repealed. Some Democrats oppose repeal, saying it would do away with consumer protections.
More protests are planned to take place at the state Capitol tomorrow. From the Daily Tribune:
Opponents of the proposed tax on pensions plan to rally at the state Capitol from 9 a.m to 1 p.m. Tuesday, March 15, with speakers between 11 a.m. and 1 p.m.
"We don't think it's fair the governor increases tax on seniors and the poor while giving breaks to business and cutting services," said Mark Horbeck, of AARP Michigan, a sponsor of the rally. "Seniors and the working poor are going to be asked to pay more taxes. What do they get in return? Less services and a business tax cut."
Other groups expected to attend include the Michigan League for Human Services and the state employee retirement association, as well as lawmakers from both parties, said Horbeck, though he declined to name the lawmakers.
AARP is one of the sponsors of the rally, but the rally was really the brainchild of Mary Lee Woodward of Oxford, a General Motors retiree who launched a Facebook page to protest the proposed tax.
She says she launched the Facebook page as soon as the governor made his budget proposal to the Legislature last month. Other efforts include passing out fliers of the upcoming rally.
Taxing her pension, Woodward says, could force her to choose between her home and her car.
State Sen. John Pappageorge R-Troy, sits on both the Senate Finance Committee and the Senate Appropriations Committee, which will deal with both Snyder's tax proposals and spending plans.
He says it's too early to tell whether taxing pensions is an idea that will eventually pass the Legislature.
"There's not sufficient support yet because we haven't had a chance to dig into it yet and see if we like it as is or if we can improve on it," Pappageorge said. "The point is it's just a little too early. You can't just look at pensions, you have to look at the whole picture and see if we're doing this as fairly as possible."
As protests continue in Madison over a controversial bill removing collecting bargaining rights from some public unions, attention is drifting to Michigan.
Governor Snyder has responded to reports and protests by saying that he does not want to follow Wisconsin Governor Scott Walker's example, reiterating in an interview with WXYZ that he is eager to solve problems--including the specifics on $180 million dollars worth of concessions from state employees--through the collective bargaining process, and that he "was hired to solve Michigan's issues."
But whether Governor Snyder wants attention from national media or not, it is happening, including a ten-minute report on last night's Rachel Maddow Show.
But what does the law actually say? What is an Emergency Financial Manager? How are they appointed?
And if the title wasn't a clue, the explanation is a little long.
From the FAQ:
What triggers the Act?
Among the conditions specified in the Act are the failure by a unit of local government to pay creditors, the failure to make timely pension contributions, and payless paydays. In addition, certain officials, or residents, of a unit of local government may request a preliminary review under the Act, as may either the State Senate or House of Representatives.
What happens when the Act is triggered?
The State Treasurer conducts a preliminary review of the financial condition of the unit of local government. Once that review is concluded, the State Treasurer reports the result to the Governor. If a serious financial problem is found to exist in the unit of local government, the Governor then appoints a financial review team to conduct a more detailed review of the financial condition of the unit of local government.
What is the purpose of a Financial Review Team?
...[A] Financial Review Team...conduct[s] a more detailed review of the financial condition of the unit of local government. A Financial Review Team generally has 60 days (generally 30 days in the case of school districts) to complete its work and file its report. A Financial Review Team report must reach one of the following three conclusions:
-- A serious financial problem does not exist in the unit of local government, or
-- A serious financial problem exists in the unit of local government, but a Consent Agreement containing a plan to resolve the problem has been adopted, or
-- A local government financial emergency exists because no satisfactory plan exists to resolve the serious financial problem.
If the third conclusion is reached, or if a unit of local government signs, but subsequently violates a Consent Agreement, then a financial emergency is determined to exist in the unit of local government and an Emergency Financial Manager is appointed.
Who appoints Emergency Financial Managers?
For units of local government other than school districts, Emergency Financial Managers are appointed by, and serve at the pleasure of, the Local Emergency Financial Assistance Loan Board, which consists of the State Treasurer, the Director of the Department of Management and Budget, and the Director of the Department of Energy, Labor and Economic Growth. Emergency Financial Managers for school districts are appointed by the Governor, subject to the advice and consent of the State Senate
New Powers for EMFs
But a bill passed by the Michigan Senate this week expands the Emergency Financial Managers' powers to include ending union-approved contracts. Holland radio station WHTC reports:
After days of debate and protests, the State Senate passes a bill to give more power to emergency financial managers appointed to cities or school districts. The 26-to-12 vote, which followed party lines, will allow emergency managers to cancel workers union contracts.
Democrats have said passing the bill would undermine collective bargaining in the affected communities or schools, while Republicans contend the legislation would help target municipalities or districts before their financial problems reach critical levels.
Six localities or school districts are currently affected by the law. From the Chicago Tribune:
The current state law related to emergency financial managers is affecting about a half-dozen local communities and schools at this time. Only Pontiac, Benton Harbor, Ecorse and the Detroit Public Schools have state-appointed emergency financial managers in place.
The bill has passed the House and the Senate and is on its way back to the House, where approval is required for some minor changes.
More than a thousand union members crowded into the state Capitol today.
They were protesting a proposal to give emergency financial managers more control over cities, townships, or school districts.
The labor movement is upset the bills would eliminate collective bargaining rights and dissolve union contracts.
The gavel reverberated in the Senate chamber as protesters in the gallery cheered, breaking the rules that prohibit demonstration during session.
They applauded Senate Majority Democratic Leader Gretchen Whitmer as she condemned the proposal for not having a salary cap.
Whitmer says it does not make sense “to vote for a bill that allows an emergency financial manager to make more than our governor.”
Outside of the chamber, hundreds of workers packed the three open floors of surrounding the Capitol rotunda – a scene similar to the pictures of protestors in Madison-Wisconsin.
They screamed for the recall of Republican lawmakers who support the emergency-manager bills.
But republican lawmakers appeared unfazed by the raucous crowd, and they plan to move forward with the proposal they say will keep many cities and school districts out of financial ruin.
The Detroit News reports the Michigan Senate is expected to pass the Emergency Financial Manager bill despite the protests taking place in the capitol. From the Detroit News:
A bill to give broad authority to emergency financial managers to fix a governing body's finances is expected to pass in the Senate on Wednesday despite boisterous union protests that punctuated today's session.
Senate Republicans voted down more than 20 Democratic amendments as more than 1,000 union members chanted "Kill the Bill" outside the Senate chamber. Their chants were audible as the chamber debated the bill, as were the catcalls of protesters crammed into the gallery above the Senate floor.
The union members protesting the bill say it would make emergency financial managers too powerful, "allowing them to toss out union contracts, overrule elected officials and dissolve city councils and school boards."
10:59 a.m.
Protesters have arrived at the state Capitol to show their opposition to a measure that would give more power to Emergency Financial Managers. Laura Weber sent this report from Lansing:
The state Capitol is jammed this morning with a raucous group of union members and supporters who are opposed to a proposal to grant more power to Emergency Financial Managers. Hundreds of protesters are chanting "kill the bill" loudly outside of the Michigan Senate chamber as lawmakers prepare to vote on the controversial measure.
Still hundreds more are on the Capitol lawn rallying against the emergency manager bills. The package of bills would strip unions of collective bargaining rights, and dissolve union contracts, if an emergency manager was put in place to take over the finances of a struggling city, township, or school district.
The Associated Press reports there are around 1,000 people demonstrating:
...protesters are at the Capitol objecting to bills that would give broad new powers to emergency financial managers appointed by the state to run struggling cities and schools.
The Senate plans to vote on the measures Tuesday. The House passed the bills two weeks ago.
Groups opposed to legislation they consider anti-union are holding the morning rally and also are chanting inside the Capitol.
Local officials warned during a Monday news conference that the financial manager measures would take away voters' rights by removing the authority of elected school board members, mayors and council members.
Workers warn that the bills could allow financial managers to terminate union contracts.
Supporters of the legislation say it would lead to earlier intervention in financially troubled communities and schools, avoiding bigger crises.
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