CONYERS, Kildee & Lawrence Urge Governor Snyder To Ensure Local Taxpayers Don't Foot The Bill For Emergency Managers' Mistakes

Washington, D.C. – Congressman John Conyers, Jr. (MI-13), Ranking Member of the House Judiciary Committee, today led a letter to Michigan Governor Rick Snyder, urging him to strongly reconsider requirements that local governments operating under Emergency Management, pay the legal fees and judgements against their Emergency Managers.  In addition to Congressman John Conyers, Jr., the letter to Governor Snyder is signed by Congressman Dan Kildee (MI-5) and Congresswoman Brenda Lawrence (MI-14). 

Currently, Michigan’s Local Financial Stability and Choice Act, MCL § 141.1560, requires local governments to cover the costs associated with appointed emergency managers who are sued in that capacity. However, legal fees incurred during Congressional investigations by former Emergency Manager for Detroit Public Schools and the City of Flint, Darnell Earley, have been voluntarily paid by the state. Congressman Conyers, Congressman Kildee, and Congresswoman Lawrence are calling on Governor Snyder to ensure all of Earley’s legal fees are covered by the state, not local taxpayers; and to ensure local governments are not required to pay legal fees associated with emergency managers’ mistakes.

“The exception made in the case of Darnell Earley, should be the rule moving forward,” said Congressman Conyers. “Local taxpayers shouldn’t have to foot the bill for mistakes made by state appointed officials who they didn’t elect. Governor Snyder must ensure the burden of legal fees incurred by emergency managers falls on the state, not local governments.”

“Michigan families should not have to pay the legal bills for state-appointed emergency financial managers. Unelected emergency financial managers are accountable only to the Governor and the state should have to pay for their mistakes,” Congressman Kildee 

Dean of the U.S. House
of Representatives
John Conyers, Jr.

said.

“I find it unreasonable to place the burden of legal fees incurred by emergency managers on local taxpayers,” said Congresswoman Lawrence. “Michiganders should not be on the hook for the mistakes of the Governor’s appointed emergency managers. The State’s emergency manager law disenfranchises voters and takes away local control. Local taxpayers should not be required to foot the bill of fraud and abuse committed by Snyder’s appointees. The State should absorb the financial burden imposed by such crimes and Governor Snyder should ensure that taxpayers are protected from the misuse of their hard earned dollars.”

In their letter, the Members wrote, “…we find it deeply troubling that the former Emergency Manager of the Detroit Public Schools and the City of Flint, Darnell Earley, requested that Flint reimburse more than $75,000 in legal fees that he incurred while under investigation by Congress regarding his role in causing the City’s water crisis…By diverting local taxes from crucial priorities to pay for unelected officials’ legal fees representation and damages, this law places a burden on local taxpayers even as it removes their control of that burden.”

“Further, it would appear to frustrate several federal statutes designed to protect the civil and constitutional rights of our citizens.  And, it permits the State of Michigan to shift responsibility for its actions to localities by dipping into the local taxpayers’ pocketbooks, even in cases where those taxpayers are injured by an Emergency Manager’s conduct…,” the Members continued.

Conyers, Kildee, Lawrence Letter to Snyder 5.19.16 by Beverly Tran

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Michigan emergency manager law targeted in congressional bill

DETROIT, MI -- Democrats in Congress on Thursday introduced a bill seeking to hinder emergency management policies that give far-reaching power over local governments to state appointees.

Michigan Former Emergency Manager, Darnell Earley

U.S. Rep. John Conyers, D-Detroit, introduced the bill with support from 30 other Democrats, including Michigan Reps. Dan Kildee, D-Flint Twp., and Brenda Lawrence, D-Southfield.

The Emergency Financial Manager Reform Act would give the U.S. Attorney General authority to withhold law enforcement funding from states where an state-appointed emergency manager rejects collective bargaining agreements or other contractual agreements without local consent.

The law would also allow funding to the be withheld if an emergency manager "fails to protect against... discriminatory impact on voting rights, harm to public health or safety, conflicts of interest, mismanagement, and abuse of discretion," according to Conyers' office.

It would allow states to be stripped of up to 5 percent of funds allocated under the Edward Byrne Justice Assistance Grant Program.

"We cannot undo the damage already done by the lead-poisoned water in Flint or fix the harm already caused by the hazardous conditions in Detroit's public schools," Conyers said in a statement.

"But we can stand together and make sure the unaccountable emergency managers responsible for these disasters – and the legal system that empowered them – are not permitted to inflict further harm on our citizens or our constitutional rights."

Michigan's powerful emergency manager law has placed state appointees in control of Detroit, Pontiac, Flint, Ecorse, Hamtramck, Allen Park Lincoln Park and Benton Harbor in recent years.

Each of those cities have since transitioned out of emergency management and remain under oversight of financial advisory boards.

Emergency managers remain in the school districts of Detroit, Highland Park and Muskegon Heights.

"Sadly one only has to look at my hometown of Flint, Michigan, to see the dangerous consequences of emergency financial managers," said Kildee in a statement.

"It was decisions by such unelected emergency financial managers that led to the current water crisis in Flint. They are entirely bottom-line focused, bringing a failed philosophy to government that puts saving money at any cost ahead of the livelihood of people. Under Michigan's current laws, democracy is suspended in cities like Flint in favor of absolute power in the hands of emergency financial managers."

Detroit schools have been under emergency management since 2009, and the district is now seeking $715 million from the state legislature to relieve it of burdensome debt built up over years of state control.

But state control over Detroit city government in 2013 and 2014 has faced less criticism, with the city being relieved of $7 billion in debt after a bankruptcy case that was led by an emergency manager.

A message seeking comment on the bill was left with Gov. Rick Snyder's office.

HR 4754 Emergency Financial Manager Reform Act of 2016

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