Democrats Widely Critical
Michigan Governor Rick Snyder provided a proposed Consent Agreement for Detroit to the City Council Tuesday, resulting in significant criticism by city officials, state legislators representing the city, and attacks from Detroit Mayor David Bing.
Characterized by the Governor as a step in the right direction to return Detroit to a state of fiscal health, the proposal calls for a 9-member “financial advisory board” with significant authority over the city’s financial decisions. The Governor compared the board to one implemented in New York City during its financial in the 1970’s.
The Mayor and other critics were quick to describe the content of the proposal as nearly identical to an emergency manager appointment, just in the form of a multiple-member board. The Administration quickly refuted those claims, pointing out that the proposal called for board members to be appointed by City Council and the Mayor as well as the Governor and the State Treasurer.
The proposal has driven a wedge, at least temporarily, between the Governor and the Mayor. In order to take effect, the proposal would need the signatures of both in addition to the State Treasurer and the Financial Review Team currently operating in the city. Council’s approval is not needed.
The Review team has until March 26th to complete their work and present the Governor with its recommendations, at which point the Governor has 10 days to act. All signs are pointing to the appointment of an emergency manager if an agreement cannot be reached. The Mayor and City Council are reportedly drafting a counter proposal to provide to the Governor for consideration – a move the Governor has welcomed.
Meanwhile, the Governor will be holding a series of town hall meetings in Detroit to ensure residents fully understand not only the content of the proposal, but more importantly, the severity of the city’s financial situation.