
Anybody seen Dave?
With financial Armageddon on the horizon --
the state threatening an emergency takeover of the city of Detroit --
the mayor took time out of his schedule on Thursday to fly to
Washington, D.C., to watch the president sign an executive order.
Seriously.
I hope he got a commemorative pen because he sure didn't bring home a pot of gold.
Call me a hayseed, but if the bank was about to foreclose on my house I
think I'd skip the journalism convention in New York City and get in
the same room as the banker.
On Tuesday, a draft of Gov. Rick
Snyder's financial stability consent agreement was presented to the
mayor and city council. That's less than a week before a state-appointed
team reports to Snyder on March 26 on whether Detroit needs an
emergency manager. Without a deal on some sort of consent agreement,
Snyder could impose an emergency manager with Mussolini-like powers to
run the city -- a move that would disband the council and neuter the
mayor.
Bing threw a hissy over Snyder's draft. He complained his authority was being usurped.
Bing wants the power, but over the past three years, he's shown he
can't exercise it. He has no plan to point to. Every signature program
of his has failed -- from house demolitions to "right-sizing" Detroit.
Renegotiated contracts with the unions have yet to be voted on. The
entrance to the mayor's executive suites may as well be a revolving
door, what with all the defections and firings.
Yes, yes,
there is the matter of the economy; falling property tax income and
unemployment and all that. But Bing has only cut his budget by ten
percent during his three years in office. So why does the city feel 100
percent broken? The buses don't run. The ambulances break down. The cops
-- like Bing -- are overwhelmed.
It's also worth reminding
you that Bing was elected on his business acumen. But as soon as he took
office, Bing Steel went under and was sold to private interests. His
creditors sued.
If he is the businessman he claims to be, then
surely Bing must see that the restructuring of the city under the
governor's proposed consent agreement mirrors that of a corporation. The
financial review board is more or less a board of directors. Bing would
maintain his role as the CEO while the board would vote on his
restructuring moves.
In fact, Bing's powers would be
heightened under the proposed agreement, giving him the powers of an
emergency manager -- able to fire workers, sell assets and impose work
rules on any union that has not signed a collective bargaining
agreement.
The decree is not perfect, starting with the
Initial Recovery Plan, a restructuring template that Bing and the board
would follow. The problem is, there is no plan. That page of the consent
draft is blank.
Secondly, there is no sunset clause, meaning the board could hang around for 20 years.
Third, the governor has influence over six of the nine members.
But at least it is a starting point.
Let me do the math for you. The governor threatens to impose an
emergency manager if the mayor and city council don't sign the
agreement.
But the mayor and council know the emergency
manager law -- Public Act 4 -- will likely be suspended in May until a
statewide referendum can be held in November.
With no credible
threat of punishment, it is almost certain the city council would
reject a plan that would make itself irrelevant.
The governor might then use the only stick left in his bag. Let the city drown.
Already vendors and contractors are not getting paid and the city will
run out of cash in a month. That means cops, paramedics and tax
collectors won't get paid. Ambulances won't get fixed. Parks won't open.
Under that scenario, you can expect a long, hot, bloody summer.
The most constructive arbiters in this fiasco seem to be the Council of
Baptist Pastors. You don't see them marching with pitchforks calling
Snyder the blue-eyed devil. After all, the head man in Washington -- a
black man -- had to send in an emergency manager to straighten out
General Motors, a mess that white men in suits created.
It is
the pastors who are meeting with the governor, the mayor, the council
and the people. They understand the moment is at hand.
"They've got to tone down the rhetoric and get to work," said Rev.
Michael Andrew Owens, president of the council of pastors. "The document
in its current form I cannot support but it is a foundation. The
deficit is out of control. Funds have been misappropriated. Something
extraordinary needs to happen now."
So in that spirit, the
Rev. Owens and I have come up with a counterproposal for the governor.
First, the board is skewed too heavily toward Lansing. Allow the mayor
and/or the council at least one more appointee to balance it.
Second, remove the belligerent clause the triggers an emergency manager.
Third, build in some sort of sunset clause that caps the state's involvement once the finances get turned around.
Fourth, send the city $150 million cash, not loans, to meet its short-term obligations.
I called a representative of the governor with our proposal. "That's a
good starting point," she said. "That's something we can at least talk
about."
If anyone can find the mayor, tell him he can have that one for free.
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