Posted on Wed, Jun 22, 2011 : 12:25 p.m.
Lawsuit seeks to overturn emergency manager law, calls it unconstitutional
By Cindy Heflin
A nonprofit organization filed a lawsuit today challenging the constitutionality of Michigan's emergency financial manager law, the Detroit Free Press reported.
The lawsuit, filed by the Sugar Law Center of Detroit on behalf of 28 Michigan individuals, seeks an injunction to block the law, which gives broad powers to emergency managers appointed to supervise financially stressed school districts and cities, the Free Press reported.
Rick Snyder
Melanie Maxwell | AnnArbor.com
Democrats and union members have complained about the law's provision giving financial manager's the power to dismiss local elected officials, and to cancel all or portions of employee union contracts.
Comments
Wilford John Presler IV
Sun, Jun 26, 2011 : 9:06 p.m.
Fascism is a radical, authoritarian nationalist political ideology. Fascists advocate the creation of a totalitarian single-party state that seeks the mass mobilization of a nation through indoctrination, physical education, and family policy including eugenics. Fascists seek to purge forces, ideas, and systems deemed to be the cause of decadence and degeneration and produce their nation's rebirth based on commitment to the national community based on organic unity where individuals are bound together by supra-personal connections of ancestry, culture, and blood. Fascists believe that a nation requires strong leadership, singular collective identity, and the will and ability to commit violence and wage war in order to keep the nation strong. Fascist governments forbid and suppress opposition to the state. Rick Snyder's policy is no less than fascism.
snapshot
Fri, Jun 24, 2011 : 6:21 p.m.
Ghost--you are wrong...The EFM law is consitutional in an emergency as would be the declaration of Marshal law would be in a national emergency. The suspension of rights and privlidges has been used by a president before as did Nizon when he froze all wages in the early 70's to stave off rampant inflation. You are in error and the court decision will prove that.
jenna stevenson
Thu, Jun 23, 2011 : 8:52 p.m.
The idea that an appointed official can fire an elected one goes against every basic tenet of democracy, and I strongly support the plaintiffs in their efforts. Democracy Now! interviewed one of them today, along with one of the lawyers on the case, and they made it abundantly clear why this is a terrible law. Check it out: <a href="http://www.bit.ly/kGIAoJ" rel='nofollow'>http://www.bit.ly/kGIAoJ</a>
seasons
Thu, Jun 23, 2011 : 12:18 p.m.
To put the emergency manager as enacted by Rick Synder into context, one needs to consider the millions of dollars that have been taken away from schools in order to give away Michigan assets to big business. Then, since the schools have been stripped of necessary funds, isn't it just a coincidence that emergency managers might be needed to help out i.e. take over those schools "manage their finances" in improved ways? Since the message about improved ways includes diminishing union bargaining powers and benefits as well as firing any of the pesky individuals who get in the way, one ends up with a very unconsitutional power grab. In the best of circumstances, State appointed emergency managers work with the elected and community appointed personnel to identify problems and develop and implement solutions. As it is now, the emergency manager seems to be a ploy to assault the democratic rights of communities and individuals. As a side question or concern -there seems to be paucity of information regarding the qualifications and selection process for Rick Synder's emergency managers. I believe I read at one point that " crash orientation" sessions were being held for potential future emergency managers. Crash orientation covering what? And of course these emergency managers are not going to be working for free; what are their salaries and where is the money coming from and what are their benefits - health insurance, paid time off, pensions, etc.?
Heardoc
Thu, Jun 23, 2011 : 4:01 a.m.
The recall petitions are rather amusing. Not ever going to succeed but very entertaining to see these people thrash about not yet realizing that the country is far different from their narrow viewpoint.
Heardoc
Thu, Jun 23, 2011 : 3:58 a.m.
This law was designed to force unions and democrats to bargain and to break the unholy alliance between democrats and labor unions -- especially public labor unions. unions give BIG LABOR money to dems. Unions then go to dems to bargain for the union. Dems give unions what they want and BIG LABOR benefits, dems benefit and the little gut pays the big retirement and medical benefits for the BIG LABOR types. The law is constitutional -- EFM comes in after a municipality cannot pay its debt. This is the start of the bankruptcy and the state has an interest as the state will be the one left to pay the bill and provide the services. I think many of you are really not interested in facts -- just really trying to push leftists ideals that are very european and not really american ideals.
Edward R Murrow's Ghost
Thu, Jun 23, 2011 : 12:52 p.m.
The start of bankruptcy is . . . wait for it . . . . when someone files for bankruptcy. Until that point the bankruptcy laws do not apply. And the bankruptcy laws are . . . wait for it . . . federal laws, not state laws. The state cannot assume jurisdiction over areas the Constitution reserves to the federal government. You really ought try reading the Constitution sometime. You might learn something. Good Night and Good Luck
Richard Lake
Wed, Jun 22, 2011 : 9:31 p.m.
Petitions are or will be circulating soon to recall these members of the Michigan Legislature as well as others: John R. Moolenaar James "Jase" Bolger Joel Johnson Howard Walker Tom Casperson Kevin Cotter Randy Richardville Nancy Jenkins Bruce Caswell Mike Shirkey Mike Nofs Phil Potvin John Proos Al Pscholka The Official Website for the Recall Efforts Is <a href="http://firericksnyder.org/" rel='nofollow'>http://firericksnyder.org/</a> Recall petitions are also circulating to recall Michigan Gov. Rick Snyder. Repeal Public Act 4 Petition Sites <a href="http://michiganforward.org/?page_id=940" rel='nofollow'>http://michiganforward.org/?page_id=940</a>
Huron74
Wed, Jun 22, 2011 : 11:01 p.m.
Waste of time and money. At least for house member who are up for election/re-election in 16 months anyway. Sore loser Dems don't like what "democracy looks like", esp. when they lose.
xmo
Wed, Jun 22, 2011 : 6:17 p.m.
Sugar Law Center: "is an Economic & Social Justice is a national nonprofit public-interest law center, dedicated to defending the rights of working people and their communities! So, what does this mean? They like the 20-24% graduation rate of the Detroit public schools! They support the unemployment rate of 30% plus in Detroit! The like the number of violent deaths in the city of Detroit! They want to keep the population of Detroit uneducated and illiterate! So why are Unions and Democrats supporting this?
Mick52
Wed, Jun 22, 2011 : 10:18 p.m.
I would be more willing to listen to the Sugar law center if they proposed exactly how they think this problem should be addressed. Raise taxes on the rich?
cinnabar7071
Wed, Jun 22, 2011 : 7:27 p.m.
So Ed which is worse, the entire US, or Demcrat run cities. Do you really want to turn the entire US into Detroit? Is that what your saying?
Edward R Murrow's Ghost
Wed, Jun 22, 2011 : 6:56 p.m.
And the United States on Janaury 1, 2009, is a perfect example of what happens when RepubliKans run the country for 8 years: Financial collapse Record deficits Doubling of the debt in but 8 years. Two wars, both of which were incompetently prosecuted, one of which was justified through monstrously and demonstrably false statements Lowest standing among other nations in the world since the isolationist 1920s Yeah, those were the days. And like I said, cinny, you seem to care only when someone uses harsh terms to describe knuckle-dragging Republikans. When it is about the president ans his supporters, your outrage at harsh language disappears. Time for you to look up the meaning of the word "hypocrite." And, BTW, if you want evidence (i.e., facts) to support the contention that Palin et. al. are a bunch of knuckle-dragging anti-intellectual religious zealots, I'd be happy to provide 'em. It won't be hard given the plethora a patently stupid things they have said and done. Good Night and Good Luck
cinnabar7071
Wed, Jun 22, 2011 : 6:48 p.m.
Hey Ed why are you now interested in facts, you never support your attacks on Republicans with facts. Now you wants facts? Well put XMO, the democrats seem to want people to look the other way when confronted with the facts of their failures. Detroit is a perfect example of what happens when democrats rule a city for 40+ years. Look at any city the dems have had control of and you'll find NO middle class.
Edward R Murrow's Ghost
Wed, Jun 22, 2011 : 6:36 p.m.
Facts to support this bizarre assertion? Good Night and Good Luck
cette
Wed, Jun 22, 2011 : 5:42 p.m.
So what happens if they argue the wrong argument?
Edward R Murrow's Ghost
Wed, Jun 22, 2011 : 5:45 p.m.
They likely will lost THAT argument, but it does not prevent them from bringing another suit with another justification later. But it makes it less likely that the court will be willing to hear that second case. Good Night and Good Luck
Edward R Murrow's Ghost
Wed, Jun 22, 2011 : 5 p.m.
They are right--the law is unconstitutional--but they have the wrong justification. Cities, townships, and school districts exist under state laws and/or under charter to the state. Courts have long held that the state can change that relationship--in effect to revoke the charter or, in the case of schools, to change the law. Under these circumstances the right to vote under the 15th Amendment is not guaranteed. But there are two issues once of which is VERY clear, the other less so. In the latter case, there is a fair question as to whether or not the EFM law adheres to the 14th Amendment's protection of due process and of "privileges and immunities," and whether the EFM law provides for equal protection. I don't know the answer to that question and, whatever people may think might be the answer, the only answer that will count is the one arrived at by a federal court. But the EFM law, it seems to me, clearly violates Article 1, Section 10 of the Constitution, which states: "No State shall . . . make any . . . Law impairing the Obligation of Contracts . . . " Contracts CAN be nullified in bankruptcy, but Article 1, Section 8 makes clear that it is the job of the United States Congress--NOT the state legislature--to create bankruptcy law. But, having a law degree from Law and Order University, what do I know? Good Night and Good Luck
Edward R Murrow's Ghost
Thu, Jun 23, 2011 : 8:59 p.m.
My definition of draconian = revoking someone's right to vote, hence their losing their voice in their governance. And you apparently did not comprehend, or have simply ignored the point I made about the manufactured nature of this "crisis". Yes, for DPS, et. al., this has been an ongoing thing. But the governor's $1.8 billion giveaway will create crises in school districts and in municipalities that, up to this point, have done a good job of managing their budgets in a time of reduced revenues. But I'm not surprised that, having asked for facts, you would ignore those not convenient to your position. This is not about being Republican or Democrat. This is about believing in democracy and about insisting that the Constitution be adhered to. Good Night and Good Luck
Mick52
Thu, Jun 23, 2011 : 7:17 p.m.
Draconian? C'mon, Ghost, draconian??. I see no problem with it. A few years ago, when Gov Granholm appointed Robert Bobb as a financial manager for Detroit Public Schools, the DPS was nearly $300 million in debt. That seems a little late to me. Why not at $200 million, $100 mill or even $1 mill in debt? If that was what the previous form of the law results in there is an obvious need for a change in the law. Also, keep in mind that Mr. Bob faced some serious opposition from the DPS school board, including lawsuits. Gov Granholm remained silent about those confrontations while it could be argued that school boards, at least past ones were responsible for the district's budget. Pontiac is in serious trouble. Its EFM even approached Brooks Patterson to see if Oakland County could simply absorb Pontiac. This type of management has to be in place long before fiscal problems like that come up. Take a look at Vallejo, Ca. You know being either democrat or republican does not mean you always have to disagree with everything the other side does. Seems like there is too much of that these days. I think many administrators faced with a fiscal/political situation where their hands are tied are relieved that they have this option available whether they admit it or not. It's another tool that can be used to solve an issue.
Edward R Murrow's Ghost
Thu, Jun 23, 2011 : 1:29 a.m.
Thanks, Urban!! Good Night and Good Luck
Edward R Murrow's Ghost
Thu, Jun 23, 2011 : 1:23 a.m.
3) When Governor Snyder took office the state was projected to have a $1.5 billion deficit in FY 2011-12 (the budget Snyder just signed) on a $10 billion discretionary budget. The governor then gave business a $1.8 billion tax break, thereby creating a $3.3 billion hole that needed to be filled. He has closed it, by among other things, drastically cutting revenue sharing to municipalities and per-pupil funding to school districts. This is an absolute disaster in a state whose revenue model is, for the most part, top-down and inflexible due to gimmicks like Prop A and the Headlee Amendment. Dozens if not hundreds of municipalities and school districts who have carefully trimmed their budgets and watched their costs over the past decade are now in deep fiscal trouble, not due to anything they did or did not do, but due to the Governor's budget. In other words, much like his counterpart in Wisconsin, Snyder's budget has created a budget crisis, and now he will use his EFM law to disenfranchise Michigan voters (BTW, worth noting the state's economy has been in recession since the late 1990s under Engler). This is a 14th Amendment issue, calling into question both due process and equal protection. 4) As for why anyone would oppose an EFM's ability to nullify a contract, the answer is simple: Because the US Constitution says that the states cannot do it, just as (according to Scalia and company, but no one else for 200 some odd years) the Second Amendment identifies an individual right. Just Remember: You asked for it. Good Night and Good Luck
Edward R Murrow's Ghost
Thu, Jun 23, 2011 : 1:22 a.m.
Mick, You ask a fair question. This response, due to A2.com limitations, will be spread over several replies. 1) Under the previous EFM law (and this one, as well), a city or school district could not declare bankruptcy unless it had been under an EFM for six months, unless the EFM approved it, and unless the governor approved it. To the best of my knowledge, no Michigan city has ever declared bankruptcy, and only one (Highland Park) has evinced a desire to do so. If dozens of cities and school districts had declared or had a desire to declare, then it would be reasonable to argue that the old EFM law was not working. But given that only one city has ever expressed a desire, and that none had done it, suggests strongly to me that the old law was fine and that the new draconian version was not needed. 2) Benton Harbor, Highland Park, Flint, Pontiac, and the DPS suffer from numerous problems, both self-inflicted and beyond their control. But with the exception of the DPS, the problems that are beyond their control (e.g., the loss of major employers as in the collapse of the auto industry) are far more important. The draconian terms of the new EFM law, then, punishes municipalities and their citizens for circumstances over which they had little or no control, thereby calling into question the law's basic fairness. Moreover, I'm yet to see any compelling argument that an EFM can do any better at addressing those underlying issues than can elected officials. (Continued)
Urban Sombrero
Wed, Jun 22, 2011 : 11:05 p.m.
ERMG, I really wish annarbor.com would hire you as a writer.
Mick52
Wed, Jun 22, 2011 : 10:14 p.m.
Roadman is referring to Home Building & Loan Association v. Blaisdell 290 U.S. 398 (1934). That is likely why they are using the justification they cite for filing the suit trying to find something that fits. The court held that states "police power" allow for this and also because of its temporary nature of the state action. I cannot understand why this law would be opposed. When cities go bankrupt a judge can end contracts and why not avoid that? If a city goes bankrupt due to either poor past decision by past councils, or because a major business closed down, it will cause issues that can reach beyond its borders. I also wonder if any the plaintiffs have standing. The only one mentioned in the Freep article owns a home foreclosure prevention business. Did GR get a EFM?
Edward R Murrow's Ghost
Wed, Jun 22, 2011 : 9:48 p.m.
If the legislation originated in the US Congress, Article 1, Section 10 would not apply. Good Night and Good Luck
Roadman
Wed, Jun 22, 2011 : 6:50 p.m.
The Impairment of Contracts Clause of the U.S. Constitution is not absolute and was held to be inapplicable to the 1930s legislation allowing for mortgage holder relief. But these are interesting arguments that a Court needs to hear.