Sunday, April 6, 2014

Financial Emergency in Lincoln Park

A State of Michigan panel officially found a financial emergency in Lincoln  Park, which is the next step to Governor Snyder appointing an Emergency Manager.

The move is not a surprise.  Lincoln Park officials expect an Emergency Manager (EM) will be coming soon.  Although the city could propose other responses, such as a consent agreement, there does not seem to be any serious opposition to an EM being appointed and taking over administrative duties in the city.

An Emergency Manager could also break existing vendor contracts and union agreements.  Frequently, city employees to have salary and benefit cuts.  Although an EM can suspend the salaries of the mayor and city council, it is not always done.

Ecorse and Allen Park have had Emergency Managers appointed for them recently, with Ecorse recently emerging out of that but with a state oversight board still in charge.  Other Downriver communities may have one coming in the future.