Municipal Employees Screwed

In 2011 Michigan passed Public Act 4, also know as the Local Government and School District Fiscal Accountability Act. This law added to the powers of "emergency financial managers", which were originally authorized in 1990.

The new law authorized emergency managers to break any contracts a city or school system may have entered into, including contracts with bargaining unit employees. Emergency managers could unilaterally decrease the pay of municipal employees, change or remove their benefits, and change the benefits of retired employees. They could even fire all public employees and outsource the city services to private companies.

Michigan's citizens petitioned to repeal this new law with a referendum. In November 2012 the state's voters succeeded in repealing the law.

In December 2012, less than two months later, the state passed the nearly identical PA 436 to replace the rejected PA 4. This time, however, they attached a small appropriation, making the replacement emergency manager law unable to be repealed.

[ Back to parent article: Has the State of Michigan Screwed You? ]