RDPMA NEWS ALERT & UPDATE
OCTOBER 18, 2013
Dear RDPMA Members and DPD Retiree Supporters:
Have you seen the news – the Bankruptcy Judge is questioning the
constitutionality of Public Act 436 based on the rejection of Public Act 4 in the
general election held November 6, 2012. We the people of the State of Michigan
voted and we spoke – NO EMEGENCY MANAGER LAWS IN MICHIGAN. Why is
Judge Rhodes questioning this? Well, on August 18th RDPMA attorneys filed their
objections to the city’s eligibility as a Chapter 9 debtor (see Detroit News article
below). We, the RDPMA, through our legal counsel, Lynn Brimer & Meredith
Taunt (Strobl & Sharp) were the ONLY party that argued that Governor Snyder
violated our Michigan constitutional right to a referendum when he passed the
new emergency manager law passed during a lame duck session after the citizens
of Michigan had specifically rejected Public Act 4. This was so aptly and fiercely
argued by Lynn Brimer that it gave the Judge pause to consider this new
argument.
This issue is now before Judge Rhodes, as a result of Lynn Brimer’s brilliant
argument, that he is pressing the State to prove the law is constitutional. He
went so far as to ask why Public Act 436 isn’t making a “mockery” of our right to
reject a law on a referendum ballot as he continued to grill the State’s attorney
(Nelson). Help us keep up this fight. Help support our legal team and its efforts
to protect our rights and our pensions. Our futures depend on it. Please send a
contribution to our legal defense fund. You may donate via our website at
www.rdpma.org. We will ALL benefit from the efforts of our legal team to protect
the people’s right to reject laws and to prevent Kevyn Orr from cutting our
pensions.
We are also asking for your support of the RDPMA fundraiser on November 16,
2013 at the Roostertail. Donation $100 (buy one, sell one) and all proceeds will
benefit our Legal Defense Fund. Your donation and support of our fundraiser will
allow RDPMA to continue with quality legal counsel. See attached flyer for further
details on our upcoming fundraiser.
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RDPMA NEWS ALERT & UPDATE
Judge hearing Detroit bankruptcy case grills state
attorney over EM law
Detroit— U.S. Bankruptcy Judge Steven Rhodes grilled a state attorney Wednesday about whether Michigan’s
Legislature made “a mockery” of the referendum process when it passed a new emergency manager law a month
after voters rejected the law last November.
Some of Detroit’s creditors have challenged the legality of Emergency Manager Kevyn Orr’s appointment in an
attempt to get the case dismissed. They are asking the judge to consider every aspect of the law that gave Orr the
authority to file for bankruptcy in determining whether the bankruptcy petition was properly filed.
During the second day of oral arguments over legal issues surrounding Detroit’s eligibility for bankruptcy, the judge
had pointed questions about why the Legislature and Gov. Rick Snyder enacted a new emergency manager law in
December following a statewide referendum of Public Act 4 of 2011.
“What’s the point of giving people the power of referendum to reject a statute if the constitution is read to give the
Legislature the power to re-enact word-for-word the same statute voters just rejected?” Rhodes asked Assistant
Attorney General Margaret Nelson. “What’s the point?”
“That becomes a political issue,” Nelson replied. “Do voters want to keep those legislators in office?”
“Why put the people to that?” Rhodes asked. “The people spoke.”
Rhodes’ line of questioning about the emergency manager law was the most dramatic moment of today’s hearing, a
continuation of Tuesday’s daylong legal wrangling over pensioners rights in the bankruptcy case. The judge
adjourned the proceedings until Monday afternoon to give attorneys for labor unions, retiree groups and the city’s
pension funds more time to prepare their rebuttals.
Nelson defended the constitutionality of the new emergency manager law, disagreeing with arguments from objecting
parties that the law, Public Act 436, is identical to the law repealed by voters. She said the new law requires more
involvement in decision-making from local leaders compared to the previous emergency manager act, which was
criticized as undemocratic.
The new law also includes options for cities to avoid the appointment of an emergency manager, although Detroit
wasn’t afforded those options when Snyder installed Orr days before P.A. 436 took effect under a 1990 law, Public
Act 72. Orr got grandfathered into the new law, allowing his appointment to bypass the scrutiny of City Council.
Last year, the American Federation of State, County and Municipal Employees Council 25 labor union bankrolled a
ballot campaign to repeal P.A. 4. More than 2.3 million voters voted to repeal the law, while 2.1 million voters wanted
to keep it.
The Republican-controlled Legislature rushed a new emergency manager law to Snyder’s desk during the December
lame-duck session over vehement objections from Democrats who said the chambers’ GOP majorities were ignoring
the will of the people.
Snyder and GOP lawmakers have said they passed a new law in response to voter concern that the previous
emergency manager statute too broadly stripped local officials in financially distressed communities and schools
districts of their power to govern. Snyder also has repeatedly said that just because voters got rid of his first
emergency manager law, that didn’t end financial emergencies in Detroit and other cities and school districts.
The new law contains a mechanism for local officials to offer alternative proposals for contracts costing more than
$50,000. Detroit’s City Council exercised this option Monday when it voted to reject Orr and Snyder’s proposed 30year lease of Belle Isle to the Michigan Department of Natural Resources to convert the island into a state park.
Under the new law, City Council’s counter-proposal for a 10-year lease with two 10-year extensions will be decided
by the state’s Emergency Loan Board, a three-person panel of Snyder appointees.
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RDPMA NEWS ALERT & UPDATE
Nelson argued Wednesday in court that voters still have “the right of referendum” against the new emergency
manager law, even though P.A. 436 contained a $5.78 million appropriation that legal experts and lawmakers say
makes it immune from a voter-initiated referendum. The money was tacked onto the bill to pay for emergency
manager salaries, attorneys and financial consultants working for the state Treasury Department in financially
distressed cities, Nelson said.
Nelson told the judge she disagreed with his assessment that the Legislature has made “a mockery” of the
referendum process.
“Where is the substance of that right of referendum that the constitution gives the people if the Legislature has the
authority to thumb its nose like that?” Rhodes asked Nelson.
“It does beg the question,” Nelson said. “It becomes a matter of political will.”
“The public already expressed its will,” Rhodes replied. “Why do it two, three or an infinite number of times?”
From The Detroit
News: http://www.detroitnews.com/article/20131016/METRO01/310160113#ixzz2i5WS
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DON’T FORGET “NATIONAL RETIREE DAY” MARCH & RALLY ON
OCTOBER 23, 2013; 9AM, 231 W. LAFAYETTE (FEDERAL COURT);
BRING YOUR SIGNS
IF YOU PLAN ON ENTERING COURT, GET THERE EARLY; DO NOT
BRING CELL PHONES OR WEAPONS!
SIGN OUR ONLINE PETITION; CLICK ON LINK (We would like to
have this delivered to Kevyn Orr and Judge Rhodes and need as
many signatures as possible).
http://www.change.org/petitions/kevyn-orr-and-judge-steven-rhodes-no-cuts-to-our-pensions-orhealth-care-benefits-we-earnedit?utm_medium=email&utm_source=victory_fund&utm_campaign=sponsorship_confirmation&ut
m_content=facebook_link&email_id=LYDTEDEBLBYVKFBYDXCU&share_action=invite
THANK YOU.
BRENDA GOSS ANDREWS
PRESIDENT
RETIRED DETROIT POLICE MEMBERS ASSOCIATION
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