Reports: Consent Agreement Near for Detroit

The State of Michigan has put another proposal on the table for the City of Detroit’s consideration – a “financial stability agreement” that calls for the appointment of an emergency manager by the Governor if the city fails to meet the included reforms. Most substantively, the new plan calls for the city to negotiate contracts with the roughly 48 unions representing municipal employees. The plan does not include a state appropriation – a sticking point to some members of Detroit City Council.

While remaining hospitalized after surgery last Saturday, Detroit Mayor Dave Bing is reportedly generally supportive of the new proposal.

The Rev. Jesse Jackson made a surprise visit to the Council meeting, voicing opposition to the plan and calling on State and Federal Government to provide financial relief to the city, a move State Representative Maureen Stapleton (D-Detroit) attempted on the Michigan House of Representatives floor during session Thursday. Rep. Stapleton attempted to amend House Bill 4289 with a $200 million appropriation to the City of Detroit. Her measure failed overwhelmingly.

The new proposal still calls for the creation of a financial advisory board, as the State’s first plan did, but in a considerably more advisory capacity. Instead, the plan focuses on the renegotiation of union contracts, as described above, and the implementation of a revenue estimating process to aid in the development of multiple year budgets.

To go into effect, the proposal needs approval and signatures by many, including a majority of the Detroit City Council. Three council members were involved in drafting the latest proposal. Five signatures are needed to approve.

posted by PAA Online , Friday, March 30, 2012 10:43 AM
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