Michigan Emergency Manager Referendum, Proposal 1 (2012)
|State code:||Public Act 4|
|Topic:||Administration of government on the ballot|
- 1 Aftermath
- 2 Election results
- 3 Text of measure
- 4 Background
- 5 Support for Public Act 4
- 6 Opposition to Public Act 4
- 7 Poll
- 8 Lawsuits
- 9 Path to the ballot
- 10 Timeline
- 11 See also
- 12 External links
- 13 Additional reading
- 14 References
Public Act 4 of 2011 focused on emergency managers (EMs), who were appointed by the governor to take over local municipalities and school districts in financial distress. Among other things, PA 4 provides for:
- The conditions under which a formal review of the finances of a municipality or school district;
- The powers of the committee performing such a review;
- The conditions and procedures under which the Governor may appoint an EM for a municipality or school district following such a review; and
- The powers of the EM.
Public Act 4 went into effect on March 16, 2011.
In Michigan, if a referendum proposal passes, the law is adopted; if the proposal is defeated, the law will not take effect. This means that voters wishing for PA 4 to take effect voted yes, while voters opposing PA 4 voted no.
According to reports, cities that had appointed emergency managers or were in the middle of a state takeover at the time of the referendum's proposal included Flint, Benton Harbor, Ecorse, Pontiac and Detroit Public Schools.
Following the defeat of Proposal 1 during the 2012 general election, it is unknown what will become of the emergency managers already appointed by the governor. Robert Davis, an opponent of the law, believes that all existing managers should be removed from their positions, and has filed a lawsuit pushing the courts for an answer. The Michigan Court of Appeals quickly reviewed the case and determined that the managers will stay in place under Public Act 72, the predecessor to PA 4. However, the case now goes to the Michigan Supreme Court and is set to be heard on December 5. Though Michigan Attorney General Bill Schuette believes that the citizens essentially repealed PA 4's repeal of PA 72, thereby restoring the original law, early signs indicate that the supreme court may not agree. During a lawsuit over the referendum's placement on the ballot, Chief Justice Robert Young, Jr. said, "Whenever a statute, or any part thereof shall be repealed by a subsequent statute, such statute, or any part thereof, so repealed, shall not be revived by the repeal of such subsequent repealing statute."
Supporters' response, new bill
Following the measure's defeat, Governor Rick Snyder and state lawmakers quickly began the process finding a replacement for the law. On December 13, 2012, the Michigan legislature approved a new version of the bill which was then signed by Gov. Snyder on December 27. The new bill offers financially troubled local governments the ability to choose from four options: accept an emergency manager, undergo bankruptcy, enter into a mediation process, or join the state in a partnership called a consent agreement. Choosing one of these options is mandatory, however, and governments that qualify are not allowed to opt out of the program. Opponents of the new bill said that no matter what option is chosen, the result would be state-oversight. Though such oversight is essentially what voters rejected during the 2012 general election, the new bill is not subject to referendum because it contains appropriations in the form of providing for emergency managers' salaries.
The new emergency manager bill took effect on March 28, 2013. The appointment of Kevyn Orr, a bankruptcy lawyer, a Detroit's financial manager was met with not only mass public protests, but also the filing of a federal lawsuit challenging the constitutionality of the new law. Concerns have also been raised over a possible conflict of interest involving Orr's former employer Jones Day. Detroit Mayor Dave Bing wants to hire the firm as the city's legal counsel, a decision that may actually fall upon Orr to make. According to reports, lawyers representing the American Federation of State, County, and Municipal Employees have filed subpoenas to officials involved in Orr's hiring.
- See also: 2012 ballot measure election results
|Michigan Proposal 1|
- Official results from the Michigan Secretary of State.
Text of measure
The official ballot text read as follows:
A REFERENDUM ON PUBLIC ACT 4 OF 2011 – THE EMERGENCY MANAGER LAW
Public Act 4 of 2011 would:
- Establish criteria to assess the financial condition of local government units, including school districts.
- Authorize Governor to appoint an emergency manager (EM) upon state finding of a financial emergency, and allow the EM to act in place of local government officials.
- Require EM to develop financial and operating plans, which may include modification or termination of contracts, reorganization of government, and determination of expenditures, services, and use of assets until the emergency is resolved.
- Alternatively, authorize state-appointed review team to enter into a local government approved consent decree.
Should this law be approved?
Snyder's request came after a lawsuit was filed in June 2011 by a group of 28 people against Snyder and State Treasurer Andy Dillon. The lawsuit argued that the state law should be suspended due to conflicts with the Michigan Constitution. Specifically, plaintiffs argued that the law "violates the rights of local voters by attempting to delegate law-making power and the power to adopt local acts to unelected emergency mangers, by suspending the rights of local electors to establish charters and to elect local officials, and by imposing substantial new costs and expenses upon local municipalities without providing new revenue."
The lawsuit was filed in Ingham County.
Snyder's request read in part:
[T]he Act can serve as an essential tool to address the austere fiscal realities local units of government face after a decade of economic challenges. Without a bypass, this lawsuit may take years to reach finality, regardless of the substantive disposition of this case; the subject matter requires an expeditious resolution.
On Tuesday, March 21, 2012, Judgepedia:Ingham County Circuit Court Judge Rosemarie Aquilina ruled against the state saying that its review team violated the Open Meetings Act during the process that eventually led to the appointment on an emergency manager in Flint. According to the ruling, Gov. Snyder's appointment of Michael Brown as emergency manager of Flint is now invalid, along with all decision made by him since his appointment. The state has said it plans to file an emergency appeal with the Michigan Court of Appeals.
Support for Public Act 4
Supporters of PA 4 argued that the act was important to ensuring that local governments were financially stable.
- The group Citizens for Fiscal Responsibility opposed the referendum and successfully brought a challenge to the petitions submitted by opponents. The challenge was brought on the grounds that the petitions' font size was too small.
- Governor Rick Snyder supported the law, saying, "Public Act 4 helps financially struggling cities and school districts to get back on track,” Snyder said. “If the emergency manager law were to go away, debt in those local units of government would continue to pile up, bills would go unpaid, paychecks may not be sent, lights could be turned off, police and fire protection might not be provided, and students would be at risk of not having a school to attend. Michigan needs this law because it helps those communities to efficiently and effectively overcome financial problems and avoid painful long-term solutions, and that is good for all Michiganders."
In Michigan campaign finance information related to ballot measures is organized by ballot question committees. The following data was obtained from the state Campaign Finance Committee:
|Committee||Amount raised||Amount spent|
|Citizens for Fiscal Responsibility||$25,000.00||$24,481.75|
Opposition to Public Act 4
Stand Up for Democracy Campaign is a coalition that sought to place the referendum on the ballot.
Public Act 4 of 2011, "The Local Government and School District Fiscal Accountability Act" has created elite bureaucrats with absolute power by expanding the role and power of Michigan’s emergency financial managers. This legislation supersedes the previous emergency financial manager policy and court decisions that provide accountability and support democracy. Many municipalities and school districts in Michigan’s urban areas are threatened by the extremes this policy takes in the sign of financial distress.
- On September 12, 2011, the Flint City Council passed a resolution in support of placing the proposed referendum. The resolution, according to reports, does not explicitly take a position on the issue but several city council members spoke out against the state law. Councilman Scott Kincaid said, "None of us like it, including myself. What we really need to do now is support the referendum."
- Rep. Woodrow Stanley argued that any attempt to create a temporary emergency manager law would undermine the will of the people and infringe on the democratic process of voters electing their government leaders.
|Committee||Amount raised||Amount spent|
|Stand Up for Democracy||$183,860.92||$182,965.07|
- See also: Polls, 2012 ballot measures
- An EPIC-MRA poll conducted on July 9-11, 2011, found that 53 percent were in support of the referendum and opposed the state law, while 34 percent were opposed to the referendum and in support of the state law. The poll was based on a pool of 600 likely voters.
- An EPIC-MRA poll conducted on September 8-11, 2012, found that 46 percent were in support of the measure and opposed the state law, while 42 percent were opposed and in support of the state law, and another 12% were undecided. The survey was based on a pool of 600 likely voters and has a margin of error of plus or minus 4 percent.
|Date of Poll||Pollster||In favor||Opposed||Undecided||Number polled|
|July 9-11, 2011||EPIC-MRA||34%||53%||13%||600|
|September 8-11, 2012||EPIC-MRA||42%||46%||12%||600|
Note: A "yes vote" implements PA 4, while a "no vote" rejects PA 4.
|2012 measure lawsuits|
| Arizona • Arkansas • Colorado • Florida • Maryland |
Michigan • Massachusetts • Minnesota
Missouri • Montana • Nevada
North Dakota • Ohio • Oklahoma
Oregon • Rhode Island
|By lawsuit type|
|Ballot text |
Motivation of sponsors
Stand Up for Democracy appeared before the Michigan Court of Appeals on May 17, 2012. The group argued that the Board of State Canvassers unjustly denied the referendum ballot access with a politically motivated vote. The board had a split vote on the issue with the two Republican members voting to keep it off the ballot because they deemed the print on the petitions to be too small. Stand Up for Democracy went before the court essentially arguing that it was the proper size.
On June 8 a three-judge panel from the court of appeals ruled on the case deciding that the measure should appear on the ballot. The court said it reached its decision based on a precedent set by an earlier case which said a technical violation such as the wrong font size shouldn't keep a question off the ballot. In spite of the court's decision, however, this did not mean the emergency manager law was suspended until November. That would not take place until the State Board of Canvassers met and certified the measure, in response to the court's ruling.
Path to the ballot
- See also: Michigan signature requirements
In order to qualify the proposed referendum to the statewide ballot, supporters were required to collect 161,304 signatures (5% of the number of people who voted in the 2010 election for Governor) and turn them in 90 days after the final adjournment of the Legislature.
Stand Up for Democracy Campaign was the coalition leading the petition circulation efforts. According to reports, the group planned to complete their signature gathering process by September 2011.
- As of August 2011 an estimated 80,000 petitions were in circulation.
- On August 16 supporters announced 120,000 signatures had been collected.
- In early November 2011, supporters announced 130,000 signatures had been verified.
- On February 29, 2012, members of the group Stand Up for Democracy delivered around 226,000 signatures to the state capitol. The Michigan Secretary of State has 60 days to verify that enough signatures are valid to place the referendum on this year's ballot.
- On April 26, 2012, the State Board of Canvassers voted 2-2 on the referendum, thereby preventing it from appearing on this fall's ballot.
|Introduction||Feb. 9, 2011||Introduced in the House by Representative Al Pscholka.|
|Senate vote||March 9, 2011||Final version passes Senate 26-12, all Republicans voting yes and all Democrats voting no.|
|House vote||March 15, 2011||Final version passes House 62-48, all Republicans except one (Dale Zorn) voting yes and all Democrats plus Zorn voting no.|
|Signed into law||March 17, 2011||Signed into law by Governor Rick Snyder.|
|Referendum initiated||August 2011||A veto referendum effort launched against the Emergency Manager Law|
- Full text of Public Act 4
- Reasons to oppose the Emergency Managers Law
- Michigan Forward - opposition to Public Act 4
- The Detroit News "2 to decide repeal have ties to emergency manager law debate," April 25, 2012
- Associated Press,"Reviewers: Detroit Can Avoid Emergency Manager," January 11, 2012
- Associated Press,"Michigan Senate OKs emergency manager transition plan; Democrats worry about future changes," December 15, 2011
- The Detroit News,"Michigan Senate OKs bill to ease transition from emergency manager," December 15, 2011
- WNDU.com,"Financial Manager Joe Harris proposes cutting commissioners, talks PA 4," August 31, 2011
- The Michigan Messenger,"Emergency Manager law repeal campaign says it’s nearing halfway mark," August 17, 2011
- Midland Daily News Emergency managers are bad, bankruptcy far worse," July 22, 2012 (Opinion)
- Michigan Legislature - House Bill 4214 (2011)
- Flint Journal,"State Rep. Woodrow Stanley calls potential emergency manager backup plan a 'scheme'," December 9, 2011
- Examiner.com "Decision on Michigan's PA 4 dictators goes to state Supreme Court," November 18, 2012
- MichiganRadio.org,"Emergency manager law rewrite could spring this week," December 3, 2012
- Associated Press,"Michigan Senate OKs new emergency manager bill," December 14, 2012
- Detroit News,"Gov. Snyder signs new Michigan emergency manager bill," December 27, 2012
- McClatchy News, "Emergency Management of Detroit Begins Amid Protests and Lawsuits," March 28, 2013
- Michigan Secretary of State,"Proposal 1," retrieved September 10, 2012
- The American Independent,"Michigan governor asks state Supreme Court to rule on constitutionality of emergency," August 19, 2011
- Associated Press "Emergency Manager Law Dealt a Blow in Flint, Mich.," March 21, 2012
- Detroit News "Michigan Court of Appeals hears plea for vote on emergency manager law," May 17, 2012
- ABC10,"Gov. Snyder speaks out on ballot initiatives," September 19, 2012
- Pre-primary campaign statement, accessed August 30, 2012
- Flint Journal,"Flint City Council supports referendum on emergency financial manager law," September 14, 2011
- Pre-primary campaign statement, accessed August 30, 2012
- Metro Times,"State of emergency: Push for referendum on emergency manager law could halt EM appointments," August 10, 2011
- The Michigan Messenger,"Poll voters would reject emergency manager law," July 19, 2011
- Detroit Free Press,"Poll: Michigan voters skeptical about collective bargaining, bridge ballot proposals," September 16, 2012
- MLive "Michigan's emergency manager opponents try to revive their effort in court," May 9, 2012
- Detroit Free Press "Michigan Emergency Manager Law to Stay on Ballot for Now," June 15, 2012
- MLive.com "Michigan Supreme Court to decide if repeal of emergency manager law goes on ballot," July 11, 2012
- Ballot Access News "Michigan Supreme Court, by a Vote of 4-3, Puts Referendum on Ballot Despite Small Font Size," August 3, 2012
- Detroit Free Press,"Drive to repeal emergency manager law still needs 130,000 signatures on petitions, organizers say," August 17, 2011
- NBC News,"Groups wants EFM repeal on 2012 ballot," November 6, 2011
- Huffington Post "Michigan Emergency Manager Repeal Delivers 226,637 Signatures," February 29, 2012
- Associated Press "Elections board tie keeps Michigan emergency manager repeal measure off November ballot," April 26, 2012
- Michigan Legislature - House Bill 4214 (2011)