Financial emergency

Financial emergency is a state of receivership for Michigan State Local Governments.

Contents

Procedure

The Michigan Department of Treasury makes a preliminary examination of troubled local governments. If “probable financial stress" is found then a financial review is order. The Governor of Michigan and other officials appoint the eight members of a financial review panel. The panel reports back to the Governor indicating that the local government is in "mild financial stress, severe financial stress or a financial emergency"[1] with in 60 days. If a financial emergency exist but there are local official capable and have a plan to correct the situation then the panel may recommend a consent agreement. If no such situation exists then the panel may recommend an emergency manager to take control of the local government.[2] The Governor has 10 days after the panel reports its findings to choose an options.[1] The local government has seven days to request a hearing by the Governor or his designee to appeal the decision.[2]

Emergency manager

Emergency Manager, formerly emergency financial manager, is an official appointed by the Governor to take control of a local government under a financial emergency. A manager temporarily supplants the governing body, chief executive officer and/or chief administrative officer of the local government with the ability to remove any of the unit's elected officials. Managers have complete control over the local unit with the ability to reduce pay, outsource work, reorganize departments and motify employee contracts.[3] Emergency managers assign to school district may transfer failing schools to the Education Achievement Authority.[4]

List of emergency managers

Local Government Term Manager Governor
City of Benton Harbor April 2010- Joseph Harris Jennifer Granholm
City of Ecorse October 2009 - Joyce A. Parker Jennifer Granholm
City of Flint 2002-200? Ed Kurtz John Engler
12/2011- Michael Brown Rick Snyder
City of Pontiac 8/2010-10/2011 Michael Stampfler Jennifer Granholm
10/2011- Louis Schimmel Rick Snyder[3]
Detroit Public Schools  ?-5/2011 Robert Bobb Jennifer Granholm[5]
5/2011- Roy Roberts Rick Snyder[6]

See Also

References

  1. ^ a b Longley, Kristin (November 4, 2011). "State panel reviewing Flint's finances asks for up to 30 more days". Flint Journal. http://www.mlive.com/news/flint/index.ssf/2011/11/state_panel_reviewing_flints_f.html. Retrieved 30 November 2011. 
  2. ^ a b Longley, Kristin (November 8, 2011). "State review panel recommends emergency financial manager be appointed in Flint". Flint Journal. http://www.mlive.com/news/flint/index.ssf/2011/11/state_review_panel_recommends.html. Retrieved 30 November 2011. 
  3. ^ a b Longley, Kristin (November 18, 2011). "Other emergency managers provide glimpse of what Flint can expect under state takeover". Flint Journal. http://www.mlive.com/news/flint/index.ssf/2011/11/other_emergency_managers_provi.html. Retrieved 30 November 2011. 
  4. ^ Higgins, Lori (Dec. 4, 2011). "State district for failing schools may expand past DPS earlier than planned". Detroit Free Press. http://www.freep.com/article/20111205/NEWS05/112050321/State-district-failing-schools-may-expand-past-DPS-earlier-than-planned. Retrieved 5 December 2011. 
  5. ^ Duggan, Daniel (November 4, 2009). "Freman Hendrix asked about Detroit Public Schools' $13 million lease in 2001". Crain's Detroit Business. http://www.crainsdetroit.com/article/20091104/FREE/911049989. Retrieved November 7, 2009. 
  6. ^ Chambers, Jennifer (November 28. 2011). "Official revives DPS fight". The Detroit News. http://detnews.com/article/20111128/SCHOOLS/111280328/1026/schools/Official-revives-DPS-fight. Retrieved 5 December 2011.