Wednesday, August 31, 2011

Is the Michigan municipal bankruptcy bill anti-democratic?

In a party line vote, and despite impassioned speeches of protest by the body’s Democratic minority, the Michigan Senate approved legislation that threatens to take over and even dissolve local governments that refuse to balance their budgets by breaking labor contracts.

According to the law, which has already been approved in the House, the governor will be able to declare “financial emergency” in towns or school districts and appoint someone to fire local elected officials, break contracts, seize and sell assets, and eliminate services.

Under the law whole cities or school districts could be eliminated without any public participation or oversight, and amendments designed to provide minimal safeguards and public involvement were voted down.

An amendment to require Emergency Managers to hold monthly public meetings to let people know how they are governing was rejected by Senate Republicans, along with proposals to cap Emergency Manager compensation and require that those appointed to run school districts have some background in education.

Critics say that Republicans are manipulating concerns about budget problems in order to consolidate power by undermining unions. The measure could be sent to the governor for final approval this week.   Michigan Messenger

We are getting pretty good using the courts. The anti-democracy movement is in both parties. I think removing the risk insurance and getting the judicial system working is the best approach.
Voting is wonderful, and voters should be allowed to screw themselves royally, if that is what they want. In California, the Dills act removed the local voter from the process and caused the states debt crisis. Passing the Gov. Rick Snyder Act in Michigan creates the same thing, right wing Republicans will bankrupt government just as fast as left wing Democrats. The solution is to put the contracts in the hands of voters and the bankruptcy judges, going in and going out.

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