Emergency Financial Manager Reform Measures Pass Amidst Protest

After a two-day debate that included thousands of protestors in and out of the Capitol, the Senate passed legislation Wednesday representing significant reform to the authority granted to emergency financial managers (EFMs) appointed to financially troubled school districts and municipalities.

During the Senate debate on General Orders Tuesday, union protestors streamed from the East Lawn to the Capitol Rotunda, the Senate lobby and the Senate Gallery, often chanting so loudly the floor debate was difficult to hear. Final passage on Wednesday included some remaining protestors; however, not to the extent that saw the Senate Gallery nearly cleared on Tuesday.

Seen as the most controversial initiative of the young session, House Bill 4214 (the main bill in the package) along with the other measures, passed on straight party-line votes. Democrats, maintaining the legislation is a power grab attacking local democracy and collective bargaining, offered many of the same amendments during Third Reading Wednesday as were offered Tuesday.

The most significantly debated amendment, offered by Senator Tupac Hunter (D-Detroit), sought to cap the salary of an EFM at the same level as the Governor. When seven GOP Senators (all freshmen) joined the 12 Democrats in voting yes, Lt. Governor Brian Calley had to cast the deciding vote to break the 19-19 tie and defeat the amendment.

In addition to the controversial move of providing EFMs with the authority to void contracts with school district and municipal employees, the reform changes the triggers that would result in a preliminary review – thereby making the appointment of an EFM possible much earlier in financial difficulty.

HB 4214 will move back to the House for concurrence in the Senate changes, which sponsor Representative Al Pscholka (R-Stevensville) indicated the House would approve, prior to moving to Governor Rick Snyder’s desk for signature. The other measures in the package were enrolled and presented to the Governor Wednesday afternoon by the House.

Labels: emergency financial manager reform

posted by PAA Online , Friday, March 11, 2011 11:16 AM
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