Monday, March 11, 2013

Detroit Can't Avoid Big Fall

Across Michigan, emergency managers installed by the state are using sweeping powers to privatize public services, lay off city employees, and weaken public sector unions with little standing in their way. Now the same thing is likely to happen in Motor City, one of the industrial centers of America.
Ostensibly a mechanism for rescuing insolvent Michigan cities and school districts from the brink of bankruptcy, the Emergency Management system has turned into a way for unelected officials to break up public sector unions, privatize public services, and drastically shrink the size of municipal governments. Currently, five Michigan cities are being administered by emergency managers—all of whom were appointed by the state’s Local Emergency Financial Assistance Loan Board (ELB).
When a city fails to meet certain financial benchmarks, the state can step in.

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