Traverse City Record-Eagle

Other Views

December 31, 2011

Another view: Vague solutions to cash woes

Livingston County Daily Press & Argus (Howell)

Support is growing for

those who oppose

the expanded

power given this year

to emergency financial

managers in Michigan.

A group organizing a petition

drive says it has the

signatures that would put

the measure to a statewide

vote.

Meanwhile, Michigan’s

two U.S. senators have

written a strongly worded

and somewhat ominous letter

asking Republican Gov.

Rick Snyder to essentially

back off.

The push-back is understandable.

Under current

law, emergency financial

managers have unprecedented

power to rule a city

or school district on the

brink of economic disaster.

Managers effectively

override the will of local

voters by replacing elected

councils, school boards

and mayors. They can also

toss out labor contracts.

It’s a volatile and controversial

solution. Yet the

opponents — the public

union interests pushing

for a referendum and

Michigan’s two Democratic

U.S. senators — offer no

remedy for debt-stricken

communities other than

continued financial failure

that will be underwritten

by state taxpayers.

The emergency financial

law is an extreme measure,

to be sure. Of the five in

place right now, only Flint

came into being since Snyder

took office ...

There is a difference, of

course, in that Republican

majorities in the Michigan

Legislature greatly expanded

at Snyder’s request

the powers of emergency

financial managers ...

There are a lot of reasons

why these communities are

in financial duress. Some

factors include a horrible

economy, high unemployment,

record foreclosures

and the declining value of

pension investments.

But other causes are

self-inflicted, including

wasteful spending, apparent

corruption, financial

incompetence and the

blatant willingness to

embrace out-of-control

pension and health-care

packages.

Whatever the cause, the

financial woes of a community

would indeed be their

own business, except they

can and do expect others

to cover the cost of their

budget malfeasance.

That’s the message clearly

sent by U.S. Sens. Carl

Levin and Debbie Stabenow

in their disappointing

letter to Snyder.

While failing to acknowledge

the failure of local

governments to balance

their budget, the senators

suggest that Snyder embark

upon a “cooperative

spirit” and “look for ways

the state can support our

cities.”...

There is nothing inherently

wrong with state

support for cities suffering

the worst of the economic

storms that have left

Michigan reeling. But that

support can’t merely pay

for additional poor spending

habits.

If Michigan taxpayers are

going to be tapped for the

cost, then it is reasonable

— mandatory, in fact —

that there are guarantees

that poor spending practices

will be terminated ...

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