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Aside from right-to-work, perhaps the most heated debate in Michigan last year was over the controversial emergency manager legislation.

Essentially, as opponents of the legislation fervently argue, an emergency manager siphons power from locally elected leaders and an appointed one starts calling the shots on how and where money is spent (and not spent) within an affected city.

Detroit, despite threats, has been able to doge an the infamous EFM (so far anyway).

But in many ways the city has, by default, come under a different type of financial management.

The city, it its compromised financial state, has been increasingly reliant on outside donors, big-ticket foundation gifts, to help keep city projects afloat. It’s been a much less heated debate, but it still exists in the undercurrent of city politics and grassroots movements.

A prime example of this came to a head in 2011, when the Kresge Foundation cut funding to Detroit Works project after a disagreement with the Bing administration over the role of outside decision-makers planning the fate of the city.

As Rustwire.com pointed out at the time

Investors like Rapson weren’t elected by the people of Detroit. He came to Detroit a few years ago from the McKinght Foundation in Minneapolis. He lives in some fancy suburb outside Troy. But as the Wall Street Journal points out, private individuals like Mr. Rapson are wielding a lot of power in Detroit. They are threatening to dictate the terms of a project that will nonetheless be funded 4-1 by public money.

 

 

Since 2011 Bing and Rapson have mended fances and are not on the the same page. News came yesterday taht Kresge plans to donate $150 million tot he Detroit Works projects, that is "every single dollar" that Kresge spends in Detroit over the next 5 years Rapson says.

Rapson is of the opinion that Detroit needs outside voices and ideas to get it on a new path. And he's partialy right, making the issue more complex than the stale outsider v. Detroit standoff. 

From the Wall Street Journal:

 Mr. Rapson counters that more outside voices are needed in Detroit to help local leaders who, he suggests, aren’t up to the challenge of remapping the city. “The idea that the folks who have been trained a certain way for the last 20 years and who have never had the opportunity to apply that training in another community could figure all that out de novo seems crazy,” he said in an interview.

 

But city leaders say mapping out the city’s future—including deciding which neighborhoods will survive Mr. Bing’s consolidation effort and which ones won’t—is a task for local leaders and voters. “People want to know that their interests are being represented,” says Marja Winters, the city’s deputy planning chief and co-leader of Detroit Works. “Someone who doesn’t live here can’t accurately represent their interests.”

 

 

So, in a way, the city is under a financial direction from people who have not been elected. But we have to ask ourselves: is that such a bad thing? 

Published in Minni Forman
Thursday, 27 December 2012 09:57

Rent-An-Exec? Detroit Wants To

You don’t have to be a religious follower of local news to see that Detroit has been on the receiving end of plenty of gifts, donations or, as some would say, handouts.

Call it what you will, Mayor Dave Bing has been clear that Detroit has, at this point, no choice but to set pride aside and ask for help in any way, shape or form.

He’s a mayor that ain’t too proud to beg, and in fact admits he spends an “important” portion of his time as mayor seeking help from the state, the feds, and the private sector. And rightfully so. As a leader, you do what gotta do, you take what you can when the going gets excruciating.

Over the past two months alone, the city has received millions on federal grants, big-ticket donations and in-kind gifts of everything from community building to toilet paper. It's hardly enough to make a big dent in the city's financial issues, but every bit counts.

In fact, much of the good news the city has to share lately has been about a donation or grant to the city.

Take Ford’s recent $10 million donation which in part went to meet costs at a city-run activity center. Or the news that a long abandoned “eyesore” would be demolished with a 6.5 million grant from the feds. How about the good news that Detroit would reinstate 26 firefighters with a 5.6 million grant from FEMA? While the gift of money always pleases, in-kind donations to Detroit firefighters have been announced this holiday season, as Art Van donated more that 150 mattress sets to Detroit firehouses o Christmas eve. Last month firefighters got a donation of basic supplies that the city has not been able to provide—like soap and toilet paper—from Detroit Chemical and Paper Supply company and the Andiamo Restaurant Group.

That said, Bing said there are “quite a few” more donors lined up to help Detroit amble through this financially stricken time.

Perhaps one of the most interesting plea for support comes from a program to help beef up if meager personnel numbers.

Bing has consistently responded to questions from reporters saying ““We just don’t have the people to get this done as quickly as we would like to” regarding various initiatives he has laid out.

So how can Detroit get more management level jobs without paying the high price? Bing mentioned a program at a press conference recently in which the city would seek to get businesses to “loan” their management-level employees to the city. That’s right.

“Because of the cutbacks we have had from a personnel standpoint we are very stressed, we are very light at the management level so we are now reaching out to certain businesses around the state in particular to see whether or not they could loan us executives from anywhere from one to two years,” Bing told reporters on Monday. “We’re getting some positive feedback there.”

Aside from being an HR conundrum, who would be willing to lend a manager to the City of Detroit?

We shall see.

 

Published in Minni Forman

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