Home > Politics, Trends > Hostile Takeover: Michigan Will Strip Local Governments and Corporatize Them!

Hostile Takeover: Michigan Will Strip Local Governments and Corporatize Them!

March 9, 2011



This is what’s afoot in America Right Now: Corporatization

Corporatization refers to the transformation of state assets or agencies into state-owned corporations in order to introduce corporate management techniques to their administration. Corporatization is sometimes a precursor to partial or full privatization, which almost always refers to a process by which formerly public assets or functions are sold or given to corporate entities by listing the shares of the state-owned corporation on publicly-traded stock exchanges.

This a very serious situation in Michigan. Democracy is being undermined. This is a very dangerous trend developing. Please share this post with as many people as possible. This my friends is what corporatization looks like.

Michigan Governor Rick Snyder will cut aid to local towns and cities so drastically that he can then declare them in a state of fiscal emergency and then strip the local governments of their duly elected officials and inserting his own appointed financial managers with specific authority. His bill will authorize the emergency manager to reject, modify, or terminate the terms of existing contracts or collective bargaining agreements.

Additionally the Michigan Messenger reports:

State officials estimate that dozens of local governments and school districts will soon be unable to pay their bills and the Treasury dept. is on record supporting a bill — passed by the House last week — which would recast Emergency Financial Managers as Emergency Managers and give them unprecedented new power to fire elected officials, dissolve labor contracts and reorganize or dissolve cities and school districts.

Supporters of the measure say that it is needed because the leaders of some towns and schools have been unable to muster the political will to take unpopular budget balancing steps.

Because the bill establishes no process for how appointees can carry out their new powers and specifically lays out that Emergency Managers need not consult with a community’s elected representatives, some worry that corporate managers, appointed by the governor, could liquidate community assets to cover debt and leave towns no better off than they were.

From the Michigan Messenger:
The Michigan Senate has been called into session with an expectation the body will pass a controversial set of bills that would create broad new powers for emergency financial managers.

Over 1000 labor union members and supporters are gathered on the lawn of the Capitol, while some can be heard from the hallways chanting “kill the bill.”

Labor officials say the legislation will give “dictatorial” powers over municipalities struggling with financial issues. They say Gov. Rick Snyder’s budget which has severe cuts to local revenue sharing and K-12 school fund per pupil rates will drive local units of government closer to financial insolvency, causing a need for financial managers. Those managers would be empowered to nullify any bargaining agreements in effect, and upon doing so it would stand for five years.

ALSO: the Governor’s budget will impose tax hikes on seniors and low-income workers to the tune of $1.7 billion AND then he will give $1.8 billion in tax cuts to businesses; Governor wants to take over the right to appoint local government rather then allow local citizens to vote in their officials. The Governor’s emergency manager will be able to disincorporate or dissolve municipal governments.

I have a feeling Michigan citizens will be leaving the state in droves.

  1. dan antonuk
    March 9, 2011 at 1:21 pm

    Oh my God.

  2. March 9, 2011 at 4:03 pm

    If the towns and cities of Michigan declare bankruptcy, their elected local government would remain in place. They could float bonds, raise local taxes, consolidate departments, etc., BUT for the governor to assume broad ranging powers such to setup the circumstances where towns and cities would be forced into insolvency then eliminate their local governments and replace them with unelected officials, is a violation of many town and city charters. This is a radical agenda that is anti-democracy in every way. It is first and foremost a move towards privatizing government which would make it an official oligarchy which is the anti-thesis of a democratic republic with elected representatives.

  3. Urziel
    March 10, 2011 at 6:10 am

    This has been the end game of the republican party for years. Over the last 40 years they have only continued to prove over and over what evil lurks in their hearts. I hope the actions of the newest incarnation of the neofascist republican party will so greatly infuriate everyone who has been mired in apathy for so long that we can finally banish them from politics forever.

  4. CitizensArrest
    March 11, 2011 at 2:58 pm


  5. March 11, 2011 at 3:13 pm

    Thanks for visiting; Spread the word; We need to network; You tell someone, they tell someone; etc;

  6. B sotero
    March 11, 2011 at 4:39 pm

    Banish those middle class tax paying slobs.one party rule! higher wages for all of us at their expense.100% tax on the rich.Let`s become Greece.Something for nothing is like way cool,Right?

  7. March 11, 2011 at 4:43 pm

    So, I take it you have some issues with the Governors budget bill and union busting? BTW: Greece is being propped up by the EU and IMF and will be in their debt for perhaps 10 years;

  8. March 12, 2011 at 4:37 pm

    Thanks Fixerdad; i am getting 10,000 hits a day on this stuff now; i am launching another site next week — WATCHDOG PROGRESSIVE — Please keep commenting and bring your perspective; i understand people’s frustration but we need IDEAS AND INFORMATION TO MAKE THE CONNECTIONS TO WEAVE THE WEB OF OUR STORY AND THEN — BRING IT!

  9. April 26, 2011 at 7:07 pm

    Rick Snyder is just another example of the republican mindset to corporatize America and hand it over to the Kochs,the Murdocks and thier cronies. Something sinister is developing in the shadows.

  10. April 26, 2011 at 7:35 pm

    Thanks for your comment and spread the word. See: Corporatism or Representative Government: Privatization “Budget Solution” Proposed by ALEC over at our sister site: http://watchdogprogressive.com/

  11. SnoqualmiePhil
    April 30, 2011 at 3:41 am

    I grew up outside the Detroit area and I have always said that the unions and greedy works were going to kill themselves and their jobs. They want more money and better benefits in the middle of an resession. Greed has put the state in their current position as well as corrupt gevernment (Kilpatrick is a prime example). It is the wild west out there. Stop complaining about what you get when youcreate the situatino yourselves. Everyone wants more…well….you created your own problems. Do what you always do, go on strike….that should help (not)

  12. SnoqualmiePhil
    April 30, 2011 at 3:43 am

    OH, I could spin it right back to the greedy unions that want more and more, refuse to give anything and forget that while everyone else is losing jobs they are striking for more money.

  13. April 30, 2011 at 6:00 am

    It’s recession, not resession; government, not gevernment; situation, not situatino.

    I appreciate all comments, but I respectfully disagree with yours. The issue is privatization of municipalities which is a threat to representative government. Privatization, corporatism, oligarchy and plutocracy are the antithesis to a constitutional republic with representative democracy. As a citizen you have the right to vote. You have no such right in a corporation. As regards unions, states and municipalities entered willingly into contracts with unions, eyes open. Unions are not greedy. They did not cause the economy to collapse. In your state of Michigan the offshoring of jobs has gone on since the 70s by corporations, not uniosn who want to keep jobs in America. I worked in the automotive business for 20 years – Jaguar, Toyota, Honda; my dad worked for Ford for 37 years. We never had any conflict over unions.

  14. LJK
    May 26, 2011 at 3:55 pm

    BS–Unions keep greedy Corporations at bay–give the American worker a fighting chance against Mega-Corporations and all their money. They protect the health and welfare of the American worker. What killed our economy was bailing on freakin’ Wall Street and Banks. Get a clue. We are on the same team. They want to divide us “little people” as BP Exec called us and theyre are spinning all they can about how its the Unions. BS…thats all it is. Do you like your weekends? Thank a Union. Do you like your 40-hour work week? Thank a Union. Do you like your 8-hour day with breaks? Thank a Union. I could go on and on… YOu really need to get the facts…and NOT from Faux News.

  15. May 26, 2011 at 9:56 pm

    LJK: I think you misread my take on the situation. I am 100% pro-Union. I was merely reporting what is going on in Michigan. BTW: I read dozens of news sources daily and not “faux or Fox” news. Follow me over at Watchdog Progressive where I do more political reporting and commenting. WP is on Twitter and Facebook too.

  16. May 26, 2011 at 9:59 pm

    I know we are talking about Ohio, I said Michigan. This Libertarian agenda is being played out in 16 states where Republican governors and legislatures are the majority. Michigan has been one of the most radical cases on anti-union, privatization of education, etc.

  1. March 9, 2011 at 6:58 am
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