Michigan still allows emergency takeovers of local governments. Is it finally time to reconsider?
In Detroit, the past was all too present. Houses, businesses and schools that once supported nearly 2 million people sat vacant. Old debts forced city leaders into impossible choices. There was not enough money for public safety, not enough for streetlights, not enough for parks, not enough for education — not enough, period.
In March 2013, an attorney named Kevyn Orr was appointed to take charge. He’d never received a vote and had never been vetted by the mayor or City Council. And yet, he assumed all the power that otherwise would be held by the mayor and council, as well as additional powers, such as the ability to unilaterally sell city assets. While local officials could attempt to veto certain decisions, the veto itself was subject to state approval.
Four months later, with the governor’s signoff, Orr led Detroit into the largest municipal bankruptcy in U.S. history. Orr had this authority because of Michigan’s expansive system for intervening in distressed cities and schools. His appointment by state officials as Detroit’s emergency manager intensified a debate about power and democracy that continues to this day.
In Michigan, the state has an unusual amount of discretion in initiating oversight, and its emergency managers have an unusual amount of authority, according to researchers. Compared with those of other states, Michigan’s takeover powers have also been among the most widely used. Since 2000, under various versions of the law, 10 Michigan municipalities have come under the control of at least one emergency manager. So did several public school districts, including Detroit’s.
The results were mixed and showed a clear trend, some studies found, toward intervening in majority-Black towns. One recent study found that the race and economic status of residents and the city’s reliance on state revenue were better predictors of a municipal takeover than financial distress indicators.
By 2017, 56% of Michigan’s Black residents had lived in cities governed by emergency managers or other state oversight measures, according to a widely cited lawsuit filed in federal court by a coalition of community leaders against Michigan’s governor and treasurer. Just under 3% of white people had the same experience, the complaint said. (The suit, which sought to overturn the law based on equal protection and voting rights, was later dismissed.)
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https://michiganadvance.com/2023/07/18/michigan-still-allows-emergency-takeovers-of-local-governments-is-it-finally-time-to-reconsider/