The New & Not-Improved Emergency Financial Management bill HB 4214

Why Synder's Emergency Financial Management (EFM) plan is bad?  If a city is broke, don't we need a plan to get the finances in order?

There is already a law that allows emergency financial takeover. It was enacted by legislature during Blanchard years. It does not go to the extreme that this bill does.  There are already bankruptcy laws that cover public entities.

This bill removes ELECTED officials from decision-making entirely -- essentially firing them and canceling YOUR vote.

Remember, this bill will come AFTER his new budget has stripped considerable shared revenue funding to schools, counties, townships & cities. Essentially, he will undermine their past budgeting, during the worst economy in decades and then come in and take them over when they struggle.

The bill does not restrict the salary of the company exec they hire to take over nor restrict bringing in out-of-state management.  The GOP refuses such an amendment.

This bill does not include a requirement that would ensure public hearings where citizens would be given information about alternatives and about the Governor's hired executive or company before the take-over & press could get updates monthly. The amendment was introduced and refused by the GOP.

This bill does not include a experience or a degree in education for the executive or company taking over a school district. The amendment was introduced and refused by the GOP.

It's Union-Busting and democracy-eroding. Starting at Section 19 page 26 (link below), this bill gives the power to the Governor through a private corporate representative (or is that in reverse?) to break contracts with employee unions. These are legally bargained or arbitrated contracts! There's a big desire to break unions, lower wages and make it impossible for people to support the alternative to the GOP & Chamber of Commerce -- the Democratic Party.

 Why this law right now?

Answer A. The GOP is looking for easy answers -- trying to blame the locals because there is no money to operate, INSTEAD of spending their time attracting jobs and giving lobbyists tax breaks.

Answer B. This appears to be a nationally coordinated effort. It appears in addition to the above answer, it is also being introduced now because their corporate donors, including out-of-state and multinational corporate masters, have told them to break local governments and to break unions of workers.

Answer C. We gave them encouragement on the 2010 election. The average Republican voter did not read between the lines when they put these people in office. They failed to do the homework on where these legislators' loyalties really were, what their ultimate goals were. Democrats, liberals and moderates failed to mobilize and educate voters.

Read HB 4214.
http://www.legislature.mi.gov/documents/2011-2012/billengrossed/House/pdf/2011-HEBS-4214.pdf 

Photo credit: Mitchell Rivard tweet of the Michigan Capitol rally 3/15/2011

What's a 425 Agreement? Dewitt Airport contract

Dewitt Township trustees have decided they want to sign a 425 agreement with the Lansing and the Capital Airport. Unfortunately, 425 agreements have typically benefitted a few at the expense of the many by shifting development from urban areas into greenspaces. Seldom do the more rural township taxpayers benefit since 425 agreements usually lead to increased costs in public services to the area that are spread across all taxpayers.

There are many risks to a 425 agreement for local residents. It's important for voters in both Lansing and Dewitt Township and everyone who will live, work, or drive-through the area to push their government representatives to plan this move very, very carefully.

Some History on Clinton County & the Airport

Although it resides in Clinton County, Republican Commissioners have been loath to pay the fees to belong to the Airport planning & oversight governance -- the Capital Area Airport Authority. It's an example of penny-wise and pound-foolish. In 2009, the County Commissioners also approved an addition of a trash incinerator for international waste which of course, follows the northeasterly winds across Clinton County homes, business, and schools.

It would be great if the 425 agreement would give more protections for Dewitt Township residents, but that isn't realistic. There will still be no County or Dewitt Twp representative or voting member on the Capital Airport Authority. 

Based on Dewitt Township Trustees's voting record, there is no reason to believe they will suddenly begin to protect citizens and future residents from known hazardous airport activities. These trustees will likely continue to listen to pretty words about the magic of increasing air pollution and urban sprawl to solve our job problems. Later, taxpayers have to pick up the tab. Voters must push trustees to be much more careful than they have been in the past when signing agreements with developers.

What is a 425 Agreement?

Michigan Public Act 425 allows small local governments to make "Agreements" to share costs and tax revenues from new or expanding development in an area that sits near their borders.

Although 425s can in theory be used to reduce urban abandonment and wanton urban sprawl & traffic congestion into green spaces, they have not been shown to do so.

This agreement looks like it follows the pattern of seeking cheap quick-fix of building out instead of  investing in the maintenance of existing infrastructure. The long-term costs will be carried by our children and not by the Trustees or developers.

Most of the problems from 425s arise because initial agreements and space plans are not well-thought out. Other 425 problems are because the agreements are not enforced. Residents on both sides of the agreement must take a hard look at the exact language used in the proposed agreements to see if added costs for transportation, water run-off/sewage, traffic & other enforcement, fire protection, etc. are either fully-carried by the developers (very, very doubtful) or carried by Lansing or by Clinton County or shared. We'd need to look at the public health impacts, traffic studies, and regional economic impact studies to get a clearer picture.

What's an Aerotropolis?
 
Part of what the Trustees are pushing is the concept of an "aerotroplis."  This is similar to a metropolis. Like initial cities that were started along waterways, then sprawled along railroads, then along highways as they were built. The aerotropolis is urban sprawl around an airport.

The pretty idea is that it will attract airport-related industry such as shipping and business travelers and thus lead to new hotels and restaurants and convention centers to serve those travelers and companies. The whole truth is that in Lansing, we have hotels and a conference center and restaurants that are often empty, struggling to get customers in an economy that is increasingly based on telecommunications rather than physical travel. Investing in a new aerotropolis city is risky. We need evidence that Lansing airport will attract visitors and responsible businesses. There's a strong likelihood that those new developments will sit empty or they will serve as a big, heavy ax to current area business owners. In those cases, there is not a net gain and indeed it risks tax dollars.

Are our government officials using sound assumptions for their decisions?

Voters should ask their officials to explain their assumptions and then ask for evidence supporting those assumptions. Possible questions include:

• Is there an assumption of future population growth regionally that could support such an expansion now? Some demographers would disagree.
• Is there an assumption of increased airport travel? Is there evidence that this is new visitors to Lansing? Or is this more travel by locals (flying out for business or family travel) who would not increase net sales in the region at all?
• Is there an assumption/threat that otherwise this area will be annexed? Is this real or threatened? If real, what would be the net loss to residents?
• Is this aerotropolis concept being driven primarily by developers? If so, what tax abatements are they requesting? Historically, Clinton County taxpayers and municipalities have not faired well with tax abatements.
• What systems have been developed to accurately track receipts/payments and ensure proper revenue-sharing between the parties? This is often overlooked by local officials with little experience in negotiating complex, long-term contracts.
• Is this there real evidence that there will be a long-term, net positive result or is this more wishful thinking?

As those of us in Bath and from other parts of the state can verify, 425 agreements are a big deal with long-lasting effects. They are not magic bullets. If a 425 is beneficial, then the next step is to guarantee it is written to prevent pitfalls to residents.

Ref/Resources:
Dewitt Township http://www.dewitttownship.org/Home/tabid/2074/mid/4137/newsid4137/495/Default.aspx
http://www.dewitttownship.org/LinkClick.aspx?fileticket=N3KOVD2RYkQ%3d&tabid=2074
http://www.ced.msu.edu/reports/Briefs%20-%2005f%20-%203%20-%20PQ.pdf
http://ippsr.msu.edu/Publications/ARPA425.pdf