Misplaced Pages

#955044

45-703: In 1986 a state court appointed a receiver, Louis Schimmel, for the city of Ecorse which had a $ 6 million deficit. The court appointed receivership lasted until 1990. The financial emergency status, along with the Emergency Financial Manager (EFM) position, was first created in Public Act 101 of 1988 for the specific emergency in Hamtramck . Public Act 101 was amended by Public Act 72 of 1990 , allowing an Emergency Financial Manager to be appointed for any local governmental unit. PA 72 in turn

90-507: A $ 31 million deficit. Detroit Public Schools came under a financial emergency in 2009 under PA 72. With the expansion of emergency manager powers with PA 436, other schools have come under emergency management including school districts in the City of Muskegon Heights and City of Highland Park. On July 2, 2013, a school district dissolution provision was passed into law allowing school districts that are financially struggling to be dissolved by

135-534: A State," but does not include a state itself. States are therefore unable to file for bankruptcy even though they have defaulted in their obligations. The first municipal bankruptcy legislation was enacted in 1934 during the Great Depression. Although Congress attempted to draft the legislation so as not to interfere with the sovereign powers of the states guaranteed by the Tenth Amendment to

180-555: A dedication by Mayor William Vosine. The library's cost was $ 150,000. The American Library Association selected the library as one of the best small libraries in the United States. Ecorse has a Senior Center and a rowing club. The John D. Dingell Park is located along the Detroit River . At the 2010 census there were 9,512 people in 3,646 households, including 2,285 families, in the city. The population density

225-491: A federal corruption probe, Governor Jennifer Granholm declared a financial emergency for Ecorse, and appointed an emergency financial manager. On September 25, 2009, Ecorse Mayor Herbert Worthy and city Controller Erwin Hollenquest were arrested on charges of conspiracy, bribery, and fraud. On May 1, 2013, the City of Ecorse was moved from under an emergency manager to a state transition advisory board, which includes

270-537: A female householder with no husband present, and 37.0% were non-families. 31.1% of households were one person and 10.7% were one person aged 65 or older. The average household size was 2.58 and the average family size was 3.23. The age distribution was 27.8% under the age of 18, 9.8% from 18 to 24, 29.3% from 25 to 44, 20.7% from 45 to 64, and 12.3% 65 or older. The median age was 33 years. For every 100 females, there were 94.8 males. For every 100 females age 18 and over, there were 91.3 males. The median household income

315-592: A financial emergency exists, the local government is given four different choices: a consent agreement, chapter 9 bankruptcy , mediation or emergency manager. Under this law, the State government pays the manager's pay under this version. If an emergency manager is appointed, when the manager files his plan with the state, the local governing board may propose an alternative plan which the Local Emergency Financial Board will select which version

360-482: A financial review panel, which could report back to the Governor indicating that the local government is in "mild financial stress, severe financial stress or a financial emergency" within 60 days. If a financial emergency existed but local officials had a viable plan to correct the situation, then the panel could recommend a consent agreement. Otherwise, the panel could recommend an emergency manager to take control of

405-708: A new book collection, library services were stopped in 1925. Services resumed on March 22, 1926, when the library re-opened in the DeWallot building with 600 volumes of books; for the first time the library had its own quarters. By 1929 the Ecorse library had four staff members. Two operated other library branches in Ecorse: one in the Ecorse Municipal Building and one located on Visger Road. The current Ecorse Public Library opened on December 12, 1948, with

450-658: A number of unique characteristics. Because municipalities are entities of State governments, the power of the bankruptcy court is limited to some extent by the Tenth Amendment to the United States Constitution . Municipalities' ability to re-write collective bargaining agreements is much greater than in a corporate Chapter 11 bankruptcy and can trump state labor protections, allowing cities to renegotiate unsustainable pension or other benefits packages negotiated in flush times. Section 109(c) of

495-507: A request by local residents or officials, or request by a state legislator or state treasurer. If the review found that a financial emergency existed, the Local Emergency Financial Assistance Loan Board would make the appointment of an emergency financial manager for the governmental unit. Public Act 72 of 1990 broadened the Emergency Financial Manager powers to handle all matters of finances of

SECTION 10

#1732800854956

540-486: A separate state control arrangement, under which Detroit Public Schools operated from 1999 through 2005 during the John Engler administration for academic reasons. At the time the state assumed control in 1999, Detroit Public Schools had a budget surplus of nearly $ 115 million. At the end of the 2005 school year, the final year of the state's initial period controlling Detroit Public Schools, the district had accumulated

585-693: A very limited authorization to file for bankruptcy. Illinois, for example, only grants Chapter 9 authorization to the Illinois Power Agency. A total of 12 states authorize Chapter 9 upon conditions met and further action of state, officials or other entity; and the remainder (12) specifically authorize bankruptcy. Neither Chapter 9 nor any other part of U.S. bankruptcy law allows a state to file for bankruptcy, although states have defaulted on their obligations. The last U.S. state default took place in 1933, when Arkansas defaulted on its bonds. Certain politicians and scholars have argued that

630-581: Is a chapter of the United States Bankruptcy Code , available exclusively to municipalities and assisting them in the restructuring of their debt. On July 18, 2013, Detroit, Michigan became the largest city in the history of the United States to file for Chapter 9 bankruptcy protection. Jefferson County, Alabama , in 2011, and Orange County, California , in 1994, are also notable examples. The term 'municipality' denotes "a political subdivision or public agency or instrumentality of

675-727: Is a city in Wayne County in the U.S. state of Michigan . The population was 9,512 at the 2010 census . Ecorse is part of the Downriver community within Metro Detroit . The city shares a northwestern border with the city of Detroit and also borders the cities of Lincoln Park to the west, River Rouge to the north, and Wyandotte to the south. The city shares its name with the Ecorse River , which forms its southern border with Wyandotte. The Detroit River forms

720-494: Is an official appointed by the governor to take control of a local government under a financial emergency in the State of Michigan and is not the same as an emergency manager as defined by the International Association of Emergency Managers (IAEM) and the U.S. Department of Labor job classification. A manager temporarily supplants the governing body, chief executive officer, or chief administrative officer of

765-539: Is part of Ecorse and is included in the Detroit River International Wildlife Refuge . Ecorse Public Schools operates the public schools in the city. These include Ralph J. Bunche School (PreK-3), Grandport Elementary School (4-7), and Ecorse Community High School (8-12). Project Excel is a 3-8 magnet school in Ecorse. Ecorse Public Library is located in the city. Two Dearborn architects, Bennett and Straight, designed

810-518: The Director of Technology, Management and Budget as members or their respective designees. The board selects the emergency manager and chooses between the emergency manager's cost-cutting plan and the local unit board's alternative plan. The ELB approves all major financial decisions over $ 10,000 while a municipality is under emergency management, including transfers of publicly owned assets. An emergency manager, formerly an emergency financial manager,

855-699: The Bankruptcy Act was amended to extend to municipalities. The 1934 Amendment was declared unconstitutional in Ashton v. Cameron County Water District . However, a revised act remedying the constitutional deficiencies was passed again by Congress in 1937 and codified as Chapter X of the Bankruptcy Act (later redesignated as Chapter IX). This revised act was upheld as constitutional by the Supreme Court in United States v. Bekins . Chapter 9

900-411: The City of Ecorse was moved from under an emergency manager to a transition advisory board, which includes the previous emergency manager. On July 2, a school district dissolution provision was passed into law allowing financially struggling school districts to be dissolved. On July 18 with the Governor's authorization, Detroit's manager filed Chapter 9 bankruptcy . In August, a transition advisory board

945-515: The Constitution, the Supreme Court held the 1934 Act unconstitutional as an improper interference with the sovereignty of the states. Congress enacted a revised Municipal Bankruptcy Act in 1937, which was upheld by the Supreme Court. The law has been amended several times since 1937. From 1937 to 2008 there were fewer than 600 municipal bankruptcies. As of June 2012, the total was around 640. In 2012 there were twenty chapter 9 bankruptcies in

SECTION 20

#1732800854956

990-494: The Local Emergency Financial Assistance Loan Board. Brown was previously a Flint City employee in the past five years and was not eligible under PA 72 to be an EFM. The Sugar Law Center filed to challenge PA 4 and PA 72. PA 4 was repealed by Michigan voters in the 2012 general election, and the Michigan Legislature subsequently passed Public Act 436 of 2012 to replace the revived Public Act 72. On May 1, 2013,

1035-454: The U.S. Bankruptcy Code provides that a municipality may be a debtor in a Chapter 9 bankruptcy case only if the municipality is specifically authorized to be a debtor by State law, or by a governmental officer or organization empowered by State law to authorize the municipality to be a debtor. In 23 states, Chapter 9 authorization laws are either unclear or otherwise prohibited for municipalities. Three states (Colorado, Illinois, and Oregon) grant

1080-470: The United States, and nine petitions have been filed in 2013. Since 2010, 81 petitions have been filed. Previous to the creation of Chapter 9 bankruptcy, the only remedy when a municipality was unable to pay its creditors was for the creditors to pursue an action of mandamus , and compel the municipality to raise taxes. During the Great Depression , this approach proved impossible, so in 1934,

1125-427: The age of 18 living with them, 24.7% were married couples living together, 29.3% had a female householder with no husband present, 8.7% had a male householder with no wife present, and 37.3% were non-families. 31.3% of households were one person and 11.8% were one person aged 65 or older. The average household size was 2.60 and the average family size was 3.26. The median age was 35.4 years. 27.1% of residents were under

1170-504: The age of 18; 10.1% were between the ages of 18 and 24; 24.7% were from 25 to 44; 25.3% were from 45 to 64; and 12.8% were 65 or older. The gender makeup of the city was 47.3% male and 52.7% female. At the 2000 census there were 11,229 people in 4,339 households, including 2,733 families, in the city. The population density was 4,175.1 inhabitants per square mile (1,612.0/km ). There were 4,861 housing units at an average density of 1,807.4 per square mile (697.8/km ). The racial makeup of

1215-399: The city and provided a statute to also apply to public school districts. Public Act 4 amended and expanded the procedure. The Michigan Department of Treasury would conduct a preliminary examination of troubled local governments. If "probable financial stress" were found, a financial review would be ordered. The Governor of Michigan and other officials would appoint the eight members of

1260-460: The city was 52.18% White, 40.56% African American, 0.65% Native American, 0.19% Asian, 0.02% Pacific Islander, 3.36% from other races, and 3.05% from two or more races. Hispanic or Latino of any race were 8.94%. and 5.8% Irish ancestry according to Census 2000 . 92.7% spoke English only, while 6.3% spoke Spanish . Of the 4,339 households 30.0% had children under the age of 18 living with them, 31.0% were married couples living together, 25.1% had

1305-603: The city's eastern border as part of the Canada–United States border with LaSalle , Ontario . Native American tribes of this area used this area as a burial ground. When French colonists settled here in the last two decades of the 18th century, they named the waterway "Rivière Aux Échorches", which means "The River of the Barks" in English . In 1836, after the community had become part of United States territory, it

1350-481: The city, like many industrial inner-ring suburbs, has fallen into economic decline. In December 1986, the Wayne County Circuit Court issued a court order appointing a receiver for the bankrupt city. The receivership would last until August 1990, but the city's finances were monitored by the state of Michigan for another ten years. By September 2009, with the city facing a $ 9 million deficit and

1395-494: The current library complex, which was built to be fireproof. The first library services appeared in Ecorse in 1922, when a group of books from the Wayne County Library Service were placed for local use at Loveland's Pharmacy. During the following year, the owner of the pharmacy moved his business to gain a larger space and dedicated a section of the new location to the library. Due to a lack of space for

Financial emergency in Michigan - Misplaced Pages Continue

1440-553: The law should be amended to allow states to file for bankruptcy. Proponents say that an orderly bankruptcy is a better solution than the two alternatives: (1) defaults , which are violations of debt obligations outside of the bankruptcy process), and (2) bailouts by the federal government. Opponents, including representatives of the National Governors Association , say that amending the law to allow states to seek bankruptcy protection could create doubts in

1485-594: The local government and has the authority to remove any of the unit's elected officials should they refuse to provide any information or assistance. Managers have complete control over the local unit with the ability to reduce pay, outsource work, reorganize departments and modify employee contracts. Emergency managers assigned to school districts may transfer failing schools to the Education Achievement Authority . Ecorse, Michigan Ecorse ( / ˈ iː k ɒr s / EE -korrss )

1530-408: The local government. The Governor was given 10 days after the panel reported its findings to choose an option. The local government then had seven days to request a hearing by the Governor or his designee to appeal the decision. Local governments were required to pay the emergency manager. The Local Financial Stability and Choice Act of 2012 includes several triggers for a preliminary review: As with

1575-539: The manager will implement. After one year, the manager may be removed by a 2/3 vote of the governing body. A "transition advisory board" may be appointed after an emergency manager leaves a governmental unit and is to oversee the unit's finances. The law also allows the governor to impose a model charter or revise the existing one before the municipality exits receivership. PA 72 provided statute for school districts to also come under Emergency Financial Manager. These powers were further extended under Public Act 10 of 1999,

1620-453: The newly minted § 928(a) and § 922(d) exemption of special revenues from the automatic stay provisions of § 362. To prevent overlap with Chapter 11, § 101(41) of the U.S. Bankruptcy Code (11 U.S.C. § 101(41)) defines the term "person" to exclude many "governmental units" as defined in § 101(27), and "municipality" as defined in § 101(40). While in many ways similar to other forms of bankruptcy reorganization (esp. Chapter 11 ), Chapter 9 has

1665-549: The previous emergency manager. According to the United States Census Bureau , the city has a total area of 3.69 square miles (9.56 km ), of which 2.80 square miles (7.25 km ) is land and 0.89 square miles (2.31 km ) (24.12%) is water. The Detroit River forms the eastern border of the city, and the Ecorse River forms the southern boundary. Mud Island within the Detroit River

1710-589: The previous law, various reviews are taken before any actions are made. The State Financial Authority, either the State Treasurer or Superintendent of Public Instruction, must provide an interim report within 20 days of creating a preliminary review to the local government. Then within 30 days, they must provide a final report to the Local Emergency Financial Assistance Review Board (ELB). If the review finds

1755-538: The state treasurer and state superintendent with the intermediate school district splitting up the district's territory between neighboring school districts. Dissolved school districts become a tax-collecting unit, under the intermediate school district's control, to pay off debts. The Local Emergency Financial Assistance Loan Board (ELB) is ex officio formed board consisting of the State Treasurer of Michigan , director of licensing and regulatory affairs and

1800-416: Was $ 27,142 and the median family income was $ 32,374. Males had a median income of $ 33,915 versus $ 22,500 for females. The per capita income for the city was $ 14,468. About 17.3% of families and 22.6% of the population were below the poverty line , including 34.2% of those under age 18 and 12.2% of those age 65 or over. Chapter 9, Title 11, United States Code Chapter 9, Title 11, United States Code

1845-432: Was 3,397.1 inhabitants per square mile (1,311.6/km ). There were 4,544 housing units at an average density of 1,622.9 per square mile (626.6/km ). The racial makeup of the city was 44.0% White (36.5% non-Hispanic white), 46.4% African American, 0.8% Native American, 0.3% Asian, 4.0% from other races, and 4.6% from two or more races. Hispanic or Latino of any race were 13.4%. Of the 3,646 households 34.6% had children under

Financial emergency in Michigan - Misplaced Pages Continue

1890-586: Was appointed for the City of Pontiac which included the then emergency manager. For the City of Detroit, the state legislature passed a separate law forming a financial review commission to exercise financial check on city government as it exited bankruptcy and emergency management. As of June 27, 2018, there are no Emergency Managers in Michigan for the first time since 2000. Public Act 101 of 1988 provided certain triggers for an initial review which included: failure to pay debts, failure to pay employee salaries,

1935-452: Was largely unchanged until it was amended in 1976 in response to New York City's financial crisis. The changes made in 1976 were adopted nearly identically in the modern 1978 Bankruptcy Code as Chapter 9. In 1988, Chapter 9 was amended by Congress to provide statutory protection from § 552(a) lien stripping provisions to revenue bonds issued by municipalities. This was addressed with the classification of these bonds as "special revenues" under

1980-749: Was replaced by Public Act 4 of 2011 , which renamed the position to Emergency Manager (EM) and gave the Manager additional authority. When the Referendum petitions were approved by the Michigan State Board of Canvassers on August 8, 2012, under orders from the Michigan Supreme Court , PA 4 was suspended and the previous version, PA 72, was reinstated. All current EM except for Michael Brown in Flint were reappointed as EFM by

2025-497: Was settled by more English speakers, who named it Grand Port. The community was unincorporated within Ecorse Township . In 1903 the settlement was incorporated as the village of Ecorse. With the opening of its first steel mill in 1923, Michigan Steel Mill, Ecorse began to become an economic force in the region. The village incorporated as a city in 1942. Since the later 20th century and restructuring of heavy industry,

#955044