We all have seen the news about the demise of Detroit….at least the filing for bankruptcy……but what solutions if any are there open to the city and the state?
Actually my first thought was….will the taxpayer be on the hook for the bankruptcy? But alas, I do not see the government stepping in to help Detroit. Why? Too many other cities are near the same situation as Detroit and a precedent cannot be set….no matter how good it would be……just cannot have the government involved in any bailout.
My first thought for a solution was mediation…….I would imagine that those on the Right would not like this because it would most likely include unions and we all know what the Right thinks about them……well the lies they believe……but mediation? What is mediation?
First, you identify the problem….get parties together and see what the biggest problem is for them both……then there is the information gathering phase where mediators accumulate as much info as possible on the two sides……next,identify the biggest problem…….move on to meeting with the two sides and let them voice their ideas and then move on to solving the problem.
I like this because both sides have an equal voice and an equal chance of success……probably not gonna work for Detroit…..the problem is money and there is NONE. So, this solution is out of the question…..
In today’s climate…the most obvious at least for Michigan, is the emergency manager, which has been used on numerous occasions by Gov. Synder….if you are not from Michigan may not know what an emergency manager is……but guess what? I will tell you…….!
An emergency manager can:
- Hire/fire local government employees
- Renegotiate, terminate, modify labor contracts with state treasury approval
- Sell, lease, or privatize local assets with state treasury approval
- Revise contract obligations
- Change local budgets without local legislative approval
- Initiate municipal bankruptcy proceedings
- Hire support staff
An emergency manager cannot raise taxes.
My guess is that the EM will push hard for the bankruptcy……..I do not see where this will solve Detroit’s problems.
In my opinion…..the EM is unconstitutional and undemocratic….any time that the elected reps are by passed by any government is, in my book…undemocratic….an outright assault on democracy…………..but since I do not live in Michigan I am not an expert….but if some one who does would like to comment…I am open to a debate…..
The solution is a hard one…..but eliminating the democratic solution is NOT the answer.
Thoughts?