City Of Detroit To Exit Bankruptcy
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The 6th U.S. Circuit Court of Appeals in a 3-0 decision rejected a challenge to Michigan's emergency manager law.  They essentially said the EM law did not violate the constitutional rights of residents and that being said is Constitutional.

The 6th U.S. Circuit Court of Appeals stated the law might not be the “perfect remedy” but it’s “rationally related” to turning around local governments.

These local government are the same ones who were incapable of financially governing themselves effectively.  They simply ignored the problems they were creating and continued to do the same irresponsible things.  Why should these leaders who literally drove their cities into or did not steer around the financial abyss be allowed to continue to make the same failed decisions to steer them out of the ditch?

The Michigan Emergency law gives cities or school districts who are in financial distress four options for dealing with their financial problems, including arbitration, bankruptcy and a consent decree negotiated with state government.  The law also gives the governor the ability to appoint an emergency manager with the broad authority to run the day-to-day operations of the city or school district.

I really do not see what the problem is here.

Those that oppose the law say the EM law denies the citizens in the cities their constitutional right to due process, free speech and equal protection under the law and it also violating the Voting Rights Act.

Again I say if a cities government has proven through their actions that they cannot financially manage their cities effectively and Michigan is on the hook to bail them out then why should Michigan not have the finally say on financial expenditures?  If Michigan is not on the hook to bail out the cities then there would be no need for an Emergency Manager Law.

Would you bailout someone who comes to you for money and then tells you that you do not have the finally say on how that money is to be spent or how any of that person’s or families money is to be spent?

Let’s talk about this today on The Live with Renk Show which airs Monday through Friday 9 a.m. to noon. To let me know your thoughts during the show please call (269) 441-9595.

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