Fresh off a stinging county-wide millage defeat last fall, the 10 public school districts in Washtenaw County are crafting a new and creative plan to carve out up to 25 percent savings by combining their school bus systems. It’s the kind of move-the-money-to-the-classroom approach educational reformers have long preached!
Likewise, Grand Rapids Mayor George Heartwell is now openly calling for a a half-dozen surrounding suburbs to formally consolidate into one much larger city to, you guessed it, save big taxpayer bucks. Heartwell made his strongest remarks on the topic yesterday… “I’m talking about one city in the place of the many units of government that make up our region.”
For Heartwell’s dreams to be fully realized, state laws regarding binding arbitration for labor contracts and combining of services between communities would have to change. Supposedly to that end, the Michigan Senate passed, by nearly unanimous bipartisan votes, a package of local government reform bills this week.
But the single largest voice pushing for these local government reforms — the Michigan Municipal League — basically calls the Senate’s efforts a farce. Lansing insider Bill Rustem, president of Public Sector Consultants and a trusted advisor to former Republican Governor William Milliken, puts it like this… “Republican President Teddy Roosevelt once said ‘Speak softly and carry a big stick.’ Well, with these bills, the Michigan Senate is shouting loudly and carrying a toothpick.”
Here’s MML’s letter to the Senate before the vote this week…
February 10, 2010
Dear Senators,
We appreciate the Senate’s focus on reforms in 2010. However, the bills being taken up today, SBs 1072, 1085 and 1086 do not represent real reform for local units of government. These bills deal with two distinct issues, so allow me handle each briefly.
SB 1072 amends PA 312 of 1969, a law requiring binding arbitration in disputes between local units of government and police and fire unions. Local units of government have been seeking amendments to this law for more than 40 years. While we welcome the discussions in the last few weeks regarding SB 1072, this bill does not amend the Act in a meaningful way.
SB 1072 fails to address a crucial piece of PA 312 — the local unit of government’s ability to pay. Nothing in this bill requires an arbitrator to consider first and foremost whether a community can pay an award. An arbitrator can say a community does not have the money to pay and yet still hand down an unaffordable award. In the last 40 years exorbitant awards have pushed cities into receivership and resulted in layoffs of police officers and firefighters. In addition these awards have pushed the personnel cost of public safety to a place that is unsustainable leaving cities with no other options than layoffs of police officers and firefighters, employees critical for the safety of our communities.
In the second issue, communities have a giant roadblock standing in the way of cooperation and consolidation — the Urban Cooperation Act. As revenue sharing continues to be cut and property tax revenue is plummeting, communities are looking to share services as a way to cut costs at the local level.
The Urban Cooperation Act contains language that says no employee can be placed “in any worse position” when an employee is transferred to an authority. The result is all employees are raised up to the highest level of salary and benefits, actually creating a disincentive to cooperate. SBs 1085 and 1086 amend the Urban Cooperation Act and Intergovernmental Transfers Act but do not remove this language and remain barriers to cooperation. As passed these bills will do nothing more to encourage cooperation than existing law. Put simply the same barriers still exist.
Local units of government are struggling. Substantively amending these bills is a way help communities with tools to help their long term efficiency and sustainability. These bills do not get us there nor do they represent real reform that will provide relief to cities. Continuing to disinvest and failure to help cities in their time of need will only make Michigan’s economic condition worse as we will continue struggling to attract and retain residents and businesses.
Sincerely,
Samantha Harkins
Legislative Associate
Michigan Municipal League
3 Comments
Consolidation of certainly services and, in some cases, communities, is crucial to the economic vialbility of the State. While the State has provided funding,via consultants, to determine if the combinations are economically beneficial, there is no real stick or carrot to get communities to aggressively move forward on the recommendations that are generated. Unfortunately, in probably most cases, action will only be taken after communities are in economic peril and residents have suffered, in many cases may die, due to the cuts or significant reductions in vital services, like police, fire, and EMS/ALS. It would be great to offer some kind of incentive for communities to act promptly, NOW!
John,
A great post again on what I believe to be one of the single biggest opportunities for our state and regions to get on track. having worked in the private sector my entire life efficiency and effectiveness have been the watchwords that lead to quality business results. The reality is no different for the public sector. I truly appreciate the “identity” challenge but not at the expense of ones very existence. I live in Northville and when asked by business colleagues near and abroad where I live my response starts with Michigan and works down from there, e.g. – Metro Detroit and finally Northville. I never once answer “city vs. township” and frankly rarely get beyond the “West side”.
I love my town and I appreciate the services of the fire department, police, etc. but not at that expense of their very existence.
Northville City – 2 Sq. Miles, 6,500 Residents, Northville Township 16 Sq. Miles, 21,000 residents. 2 mayors/Managers, 2 Finance Groups, 2 Taxing/Assessing Groups, 2 Ordinance Groups, 2 Fire Depts, 2 Police Depts, 2 Zoning Groups, etc. May i be clear, it is simply too much. The drag on economic development alone is justification for change.
There is little justification for the duplication we have outside of historical development and evolution. The opportunity is now for them these things to change and (SBs 1072, 1085 and 1086) frankly taking this on is the definition of true leadership. Once again it appears that our officials in Lansing of passed on the opportunity to truly address this issue. Real courage is developing the 5 or 10 year plan that moves to a unified structure. That is real compassion, managing the change and leading vs. having it forced up on us with uncontrolled and devastating consequences.
“True compassion is more than flinging a coin to a beggar; it is not haphazard and superficial. It comes to see that an edifice which produces beggars needs restructuring. A true revolution of values will soon look uneasily on the glaring contrast of poverty and wealth.”
Dr. Martin Luther King Jr., 4-4-1967
It is not about losing ones identity but rather truly preserving it for the long haul. I truly look forward to the fall elections and coming state constitutional work.
Laws have to change.
Status quo is no good.
Look, no one figured michigan would suffer this badly under the double national recession of the past 9 yrs.
The last time we had this kind of plant closings, job losses, and pain was in the early 80s.
Coincidentally due to massive changes in auto industry from skyrocketing energy costs.
Go figure.
(Lessons learned? no)
No one wants to hurt people working for the government by reducing salaries and benefits and layoffs, but…. the govt is not a country club with endless cash.
At the same time it doesnt have to be run like a For Profit company either, with anti Employee practices.
The simple facts are that in rough budgetary times, its better most times for employees to lose some wages and benefits to compensate for impending layoffs instead.
Local and state governments only have so much revenue and they can only squeeze the rest of the populace so hard.
When the only group that has money to take from is the upper middle class with jobs or the wealthy, and they hold all the power, what is government supposed to do?
there is room for compromise between too much incentive that provides waste, and budget problems and treating employees like a disposable commodity – Middle – providing adequate market pay/benefits and no more. That includes elected politicians at all levels.
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[...] Posted by rabman13 on Saturday, March 13, 2010 Richardville’s amendment “Benefit’s Unions” to the detriment of the Municipalities This amendment offered by Senator Richardville (R) Monroe to Michigan’s Public Act 312 increases the benefit to union institutional interests and places a burden on the local Municipalities. SB 1072 does not amend the Act in a meaningful way only transfers the burden to the already cash strapped Municipalities. SB 1072 fails to address a crucial piece of PA 312 — the local unit of government’s ability to pay. Nothing in this bill requires an arbitrator to consider first and foremost whether a community can pay an award. An arbitrator can say a community does not have the money to pay and yet still hand down an unaffordable award. Passed in the Senate on February 10, 2010 Senate Bill 1072 (Senate Roll Call 45) The Center for Michigan » Local government efficiency: 2 steps forward, 1 step back [...]
[...] Local supervision efficiency: 2 steps forward, 1 step back [...]