Monday, March 11, 2013
Detroit Can't Avoid Big Fall
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.