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Author: Colovion Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 132643  
Subject: Emergency Financial Manager success Date: 5/17/2013 9:25 AM
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One of the things Maddow and her ilk railed about when Michigan passed an update to their Emergency Financial Manager law as that EFM's never solve the problem, they only enrich themselves by selling public assets to their buddies for pennies on the dollar, etc. A lack of success could just as well have meant they were powerless to change the things they needed to in order to success... and as it happens there's evidence that this was the case:

http://www.michigancapitolconfidential.com/18648

Excerpts:

ECORSE — With a healthy balance sheet, a two-year budget and an improved credit rating, Ecorse is back in the hands of local leaders.

In April, Gov. Rick Snyder announced the city no longer is in a financial emergency.

Former Gov. Jennifer Granholm put the Wayne County city under emergency management in 2009. Joyce Parker, the outgoing emergency manager, told Gov. Snyder recently that a $14.6 million cumulative deficit and a $5 million structural deficit were eliminated.

And to make sure the city stays in good standing financially, there are several safeguards in place.

...

Michigan has had a mixed history with emergency management, in part because of changes to the law. When the law was originally passed, emergency managers had no power to modify contracts. The law's current form changed that, which gave emergency managers the power to address fundamental and structural problems previously unaddressed by cities and school districts in financial distress.


There are a couple of things to point out here:

1. The EFM for Ecorse (a city in Wayne County, the same county as Detroit) was put in place by Jenny Granholm in 2009, well before Maddow and her ill-informed media buddies (which now includes Jenny Granholm, ironically enough) started saying how terrible EFM's were.

2. The EFM wasn't able to make the necessary changes until she was empowered to do so by the very legislation Maddow (et al) railed against. After that point the city quickly went from in the red to in the black and with safeguards in place to keep them there.

Does this mean Detroit will suddenly be fixed? No, that's going to take a long, long time (their financial mess makes what Ecorse owed look like a drop in the bucket), but at least the manager there (Kevyn Orr) now has the POWER to make the changes that have to be made to fix the problem, and put in place safeguards that (hopefully) should keep it from happening again. I still believe a bankruptcy will be required when all is said and done, but at least there's a decent chance of a successful rebuilding after that point thanks to the new EFM law.

The bottom line: Snyder and the GOP are solving the problem, all Maddow is doing is whining.
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