For years Detroit has been on the brink of one financial crisis after another. While the threat of running out of cash is an ever-looming one, this time the State is not buckling under Detroit’s reluctance to change the status quo (or at least the division in leadership over how to change it).
Ultimately, the buzz about the escrowed state funds is a tiny spec on the surface of an enormous financial monster. Let’s be real: Detroit is in way deeper -*- than a $30 million bond sale installment and a few unpaid furloughs can remedy. The city council could approve Miller Canfield contracts all day long and the city would still be down the well so to speak.
At this point big chunks of city operations need to be dissovled or merged. This is serious restructuring that city leaders have been able to pull off over the past decades of post industrial depression.
The consent agreement with the State put in place last spring in lieu of an EFM just isn’t cutting it. As Detroit City Councilman Andre Spivey said on Tuesday:
“…The truth of the matter is we are 8 months away from when the consent agreement [was implemented]. We could have had a baby in this time. But nothing has been done.”
That’s why an Emergency Financial Manager (EFM) now seems inevitable. Since Public Act 4 was suspended in November, the State must revert to the old emergency manager law, Public Act 72, which limits the powers of a state-appointed appointed money czar. By now it’s not a question of “if” anymore, rather “when” and “who”.
While an emergency financial manager would not have the sweeping powers that an emergency manager would have had under PA4, he or she could still take control of financial matters [hopefully] without getting too tangled in politics.
That said, perhaps the most important question for Gov. Risk Snyder when is comes to appointing an EFM to Detroit is the “who.”
It will take an individual of tremendous resolve, intelligence, and overall chutzpah to turn around the roaring southbound train that is Detroit’s finances.
The person who is appointed to head Detroit’s money matters will have to have the resolve of a Hillary Clinton and the optimistic, fiscally conservative outlook of a Rick Snyder.
If it is as Mayor Dave Bing said last week and leading Detroit is the second hardest job in the country, the EFM position could easily line up as the third most challenging.
Aside from negotiating a cease-fire in the Middle East, perhaps negotiating with city unions for hefty pay cuts and layoffs are the most difficult negotiations to make in the nation.
Snyder should appoint as Detroit’s EFM a woman with the character and intelligence of Hillary Clinton.
Conservative Stephen Hadley, former national security adviser to President George W. Bush said recently of Clinton:
“Secretary Clinton in particular stepped forward and exerted some leadership. That's very good news, because what the Middle East has been crying for is greater U.S. leadership."
Well, what Detroit has been crying for is greater leadership, too. So if an emergency financial manager is the only way out, lets make sure that manager is thoroughly vetted and can to the dang thing.
The City of Detroit is operating like a rollercoaster. Every week is a new drama. Two weeks ago it was the state threateneing to withold revenue sharing funds if a lawsuit challenging the consent agreement wasn't dropped. Last week, a judge tossed the contoversial lawsuit and the city was able to move forward appointing the last memebers of the financial advisroy board put in place under the consent agreement. It seemed like the maybe the rollercoaster was slowing down a bit.
Then, last Friday, Bing stormed out of a meeting with city council and blasted them for holding back the city by not agreeming to remove the lawyer who brought the lawsut against the consent agreement. City Council President Charles Pugh blasted back saying the mayor needed to show better leadership. This week, Bing wants to hire is own lawyer and not use the city's top lawyer, Krystal Crittendon because of the negative effects the lawsuit she brought had on the city.
It seems that this week all niceties are out the window and now the familiar rift between the Detroit Mayor’s Office and the City Council is clearer than ever.
But was Detroit Mayor Dave Bing himself who said the city needed to move forward without distractions. So why is he causing more?
There seems to be reason beyond sinking bond ratings that Bing wants Crittendon out so bad. Is he afraid she will appeal the court’s decision to throw out her case that called the consent agreement void? Is the state privately threatening him with more cuts unless he removes the lawyer who could stand in the way? There has to be an better explaination for this one.
It doesn’t take a genius to figure that out: He’d already asked the Council remove Crittendon two week before when the state threatened to hold back $80 million in funding if she didn’t drop the lawsuit and they flatly refused. In addition, less than the 2/3-majority vote needed to remove Crittendon voted in support of the consent agreement in the first place.
This can be avoided. Crittendon hasn’t said she will appeal the decision to toss the lawsuit she brought, so, for now, this dramatic showdown should be over.
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