A referendum on public act 4 of 2011- The Emergency Manager Law
Public Act 4 of 2011 would:
- Establish criteria to assess the financial conditions of local government, including school districts.
- Authorize the Governor to appoint an emergency Manager (EM) upon the 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.
People voting yes say:
- A "Yes" vote upholds public act 4, the local government and school district fiscal accountability act. The law allows the state to intervene in schools and local governments who are experiencing financial difficulty in order to attempt to avoid bankruptcy.
- Repealing the law puts the local elected officials back in charge who may repeat the same mistakes, putting Michigan taxpayers on the hook for the debt these officials pile up
- Repeal would throw several Michigan cities and schools into financial chaos, threatening critical services because of a political decision.
People voting "No" say:
- A "No" vote repeals public act 4. This law undercuts local control by replacing democratically elected representatives with an unelected manager overseen by the state, even if the financial difficulty resulted from causes beyond the control of local officials.
- The law allows emergency managers to break and/or renegotiate contracts, including contracts with employees and private businesses, and to suspend collective bargaining.
- This law gives extensive power to an appointed emergency manager, with few checks and balances on his or her actions and behavior.