Bankruptcy Court Needs History Lesson

Nuances of emergency manager law missing


According to the news reports on the Detroit bankruptcy proceedings, Judge Steven Rhodes is interested in the legality of the state’s emergency financial manager law.

Unfortunately, neither side seems to be making the plain case about why the state reverted to the emergency financial manager law following the rejection by voters of the emergency manager law, nor are they acknowledging the differences between the two.

To get the story behind the new law, see Michigan Capitol Confidential. And for a history of Michigan’s emergency manager law, see this section of our Proposal 1 Policy Brief.