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In 2011, the Michigan legislature passed PA 4, a law which gives the Governor of Michigan sweeping powers to oversee all aspect of city government, or school district if the entity is in financial hardship, through appointment of an Emergency Financial Manager. Under PA 4 the EFM had the power to: 1. Cancel all the contracts that the city has approved 2. Basically erase all collective bargaining agreements that have been done with the unions 3. Eliminate or merge entire city departments 4. Remove or replace the pension board
We are District 6
Emergency Manager
BELLE ISLE BOATHOUSE, 1905
Bankruptcy
Although many believe bankruptcy was years in the making, it poses serious threats: cuts pensions, leads to layoffs & outsourcing thus devastating Detroit workers. Many dont know retired police & firefighters dont get Social Security. MI Attorney General Schuette said the plan to cut pensions violated the MI Constitution. The EM and Jones Day law firm, contracted to manage the bankruptcy, are forecasted to spend over $200m in taxpayer money to manage the bankruptcy while Detroit has seen a $700m revenue sharing cut over 10 years from the State .
Privatization Privatization, simplified, is the outsourcing of cityowned services to private companies in part or completely sold off. This creates several possible scenarios that could be bad for Detroit residents including: increased cost for public services, lack of accountability and contractor oversight, potential diminished quality of public services, lower wages and decreased benefits for public workers, and decreased environmental protections. In 1999, Atlanta Georgia privatized its water system under a 20-year contract, only 4 years later, the city cancelled it.
GOVERNANCE Detroiters have managed, cleaned, mowed, protected people, land, homes and streets even in the absence of City services. As all taxes sales, income and property go towards the stewardship of our resources, we have contributed to the governance of those resources, and should have a say to how those are governed and funded. Parks, lights, transit, land, water, education, streets, garbage, work to contribute to the citys collective health and the good welfare of people and neighborhoods and should be held in the common trust, democratically and publicly controlled. All representatives, elected or appointed, should support this and a fair share of city funds to District 6. The pensions for Detroit's retirees average just over $18,000 a year. That means many AIG executives got a larger bonus [during the bail out] from their bankrupt company in 2009 than Detroit workers will collect over their whole retirement. Dean Baker, Center
for Economic and Policy Research Source: Huffington Post, 8/26/2013 Source: Huffington Post, 7/25/2013
Detroit Emergency Manager, Kevyn Orr [right] has said Detroit has long-term debts of at least $18 billion. The bankruptcy process could take a year or more, but U.S. Bankruptcy Judge Steven Rhodes first must find that Detroit is eligible.
References: PA4, http://www.legislature.mi.gov/documents/2011-2012/publicact/htm/2011-PA-0004.htm . PA 436, http://www.legislature.mi.gov/documents/2011-2012/publicact/pdf/2012-PA-0436.pdf. Huffington Post, http://www.bloomberg.com/news/2013-03-15/half-of-michigan-s-blacks-lose-local-control-in-detroit-takeover.html. In the Public Interest, Ask the Right Questions Before Privatizing, www.inthepublicinterest.org. Free Press, http://www.freep.com/article/20130727/NEWS15/307270059/Michigan-AG-to-defend-public-pensions-in-Detroit-s-bankruptcy-filing. MLive, http:// www.mlive.com/news/detroit/index.ssf/2013/08/detroit_bankruptcy_fees_at_128.html . Building Movement Project [2013] Guidance Summary for Charter of the City of Detroit.