Highland Park, the birthplace of mass production and the former headquarters of two of America’s biggest automakers, serves as an important historical community with a rich and important heritage. Once a thriving community of 60,000 people and considered one of the greatest cities in the nation, Highland Park took a turn for the worse in the late 1950s when Ford Motor Company closed its car plant, which at the time was the lifeblood of the community.

The city’s population, which peaked at 52,959 in 1930, decreased by 75 percent, and along with it went the accompanying tax base. The economic downturn resulted in the city’s attractive neighborhoods and stately public buildings falling into disrepair. In 2001, the city’s dire financial situation prompted the Michigan Department of Treasury to appoint the first of two emergency financial managers. Unfortunately, between 2001 and 2005 little progress was made towards restoring economic viability to the city.

In 2005, Highland Park resident Arthur Blackwell II was appointed by Gov. Granholm as the city’s second emergency financial manager. Mr. Blackwell, who works without pay, assumed many of the powers previously vested in elected officials. Between the time of his appointment and the present, Highland Park’s $17 million debt has been reduced to $4 million by reducing the workforce by 60 percent, through negotiating to have debts forgiven; reducing the workforce by 60 percent; auditing workers’ compensation claims; reducing the city’s annual legal fees by hiring in-house counsel; renegotiating pensions and health care plans for police and firefighters; and establishing greater efficiency in the water department.

There are many indications that Highland Park – which is now home to more than 300 businesses – has stabilized and begun to reinvest in its infrastructure. More than 100 blighted properties have been removed and renovations have been made to the library, municipal building, field house and parks. Many streets are being paved. Two large companies, Coca-Cola and Visteon, have recently set up shop in Highland Park.

As the state representative serving Highland Park, I want to see the progress our city has made continue, and our community’s rich heritage restored. That is why I sponsored House Bill 5449, which passed the House this week and has been sent to the Senate for consideration. HB 5449 would revise the eligibility criteria under the Emergency Municipal Loan Act, allowing Highland Park to submit a loan application to the Department of Treasury Local Emergency Financial Assistance Loan Board, and also benefit from a $2 million increase in the maximum loan amount in any one fiscal year from $1 million to $3 million.

Currently, the Municipal Emergency Loan Board authorizes loans of up to $1 million annually for struggling communities, if the communities are experiencing little or no growth in their income tax collections. Highland Park has met that criterion and was loans in 2003 and 2006. Generally, to be eligible, a community’s income tax growth rate must fall below .90.

In the most recent two years of income tax collections, Highland Park’s growth rate was 1.24, a level of improvement that is too high for the city to qualify for another loan. Highland Park is collecting more taxes, but not enough to be solvent. This bill has been introduced to revise the eligibility criteria for municipal emergency loans so that Highland Park could again qualify for state assistance.

I’m not about to give up on Highland Park. I see a lot of positive changes and growth in the city and my bill will help keep Highland Park on the path to success.

Bert Johnson (D-Detroit) is a state representative. If you have any questions, please contact him at (517) 373-0144.