Another failure of Emergency Management

The southeastern city of Hamtramck (spelled correctly, pronounced “Ham-tram-ick”) is facing the prospect of its city being taken over by an Emergency Manager as the state has ordered a financial review team to assess its financial situation.

Hamtramck is a small city of just over 22,000. Its population is just over half (53.6%) white and has an unusually high population of Asians (21.5%.)

This would be Round Two for Hamtramck. In 2000, Governor John Engler installed an Emergency Financial Manager, a familiar player Louis Schimmel. Six years later, books balanced and financial crisis “solved”, Schimmel left and, in 2007, the city was once again back in charge of its government.

However, that didn’t last long. In 2010, facing continuing budget issues, Hamtramck asked the state to be allowed to declare bankruptcy. They were denied.

Click through for more.

Some truth-telling from the judicial branch

Back in December, Pontiac Emergency Manager Lou Schimmel unilaterally decided to change the composition of the city’s pension board from 11 to 5 members. He thought they were wasting time and money and felt his role as the EM gave him the ability to simply do what he wished.

Yesterday, Oakland County Judge Rae Lee Chabot upheld a preliminary injunction filed by the pension board and reversed Schimmel’s action. In her smack-down of Schimmel’s move, she said “That’s what it looks like — it looks like a dictatorship where the (emergency financial manager) said, ‘look, I’m going to turn over the board so there is no opposition.'”

More after the jump.

Pontiac – we build excitement?

There’s a pretty well-written, well-researched and fair piece about Michigan’s Emergency Manager crisis at Governing.com. It focuses heavily on Pontiac and their history with EMs including their current one, Louis Schimmler.

There wasn’t a lot in the article that I didn’t already know but there were two things that caught my attention…

Anyone wanna buy a sewer? Lotsa Emergency Manager tidbits to report today. Highland Park schools Emergency Manager takes the reinsAs I reported last Friday, a new Emergency Manager has been appointed in Michigan, this time it’s the Highland Park school district that has been taken over. You can read about Jack Martin HERE. He’s also on the team that is […]

This past year, the Emergency Manager of Pontiac at the time, Michael Stampfler signed a five-year contract with United Water to run their water and wastewater treatment systems. The move was said to save Pontiac an astonishing $2.8 million per year. I broke a story that made national news about the fact that, by hiring United Water, Stampfler had hired […]

Yesterday, I wrote about how Pontiac Emergency Manager Louis Schimmel signed an agreement with Oakland County to manage monies from a substantial HUD grant. This boneheaded decision, it turns out, would have resulted in a loss of upwards of $800,000 per year for Pontiac. Thankfully, Congressman Gary Peters stepped in to prevent this from occurring. Federal and local politicians lined […]

This is shocking to me (though I suppose it shouldn’t be.) Pontiac’s Emergency Manager Louis Schimmel that all but gave away millions of dollars dedicated to the City of Pontiac due to a single decision he made as EM. He was able to do this with no accountability because he is, after all, completely in control of the entire government […]

The Emergency Manager juggernaut continues to roll unabated in Michigan. In early December, I reported that Muskegon Heights school district was requesting an Emergency Manager and that a state review had been initiated. Yesterday, the Snyder administration added Highland Park schools to the list. An emergency manager may soon take charge of the Highland Park School District. A state review […]

One of the main points I have raised repeatedly since the passage of Michigan’s Emergency Manager law, Public Act 4, is that the imposition of an Emergency Manager (EM) does little, if anything, to solve the underlying problems that bring municipalities and school districts to the crisis point where an EM is deemed necessary. With Joe Harris set to depart […]

After the resignation last week of Michael Stampfler as Pontiac’s Emergency Manager, Louis Schmimmel was chosen as his replacement. The former emergency financial manager of Hamtramck and Ecorse is known as an expert at privatizing public services and comes highly recommended by the far-right conservative Mackinac Center think tank. Schmimmel, in fact, was the director of the Morey Fiscal Policy […]