With unemployment at 15.2 percent and the tax revenue needed to run the state disappearing , Phil Power of the Center for Michigan says it’s time to “think the unthinkable.”
What about bankruptcy? It seems the rules governing the practice are changing before our eyes; witness GM’s and Chrysler’s rapid exits from bankruptcy. If the Legislature and the governor can’t fix our state, why not a bankruptcy judge?
In an article published on Livingstondaily.com, Power, a University of Michigan Regent and former newspaper publisher, praised House speaker Andy Dillon for proposing to combine the public employee health plans. He also praised Robert Bobb, the man appointed by the governor to serve as emergency financial manager for the Detroit public schools.
Bobb has wasted no time. He’s closed schools, fired clumsy and corrupt administrators, and canceled nonperforming or corrupt contracts. Now, he’s considering putting the entire school system through Chapter 9 of the federal bankruptcy code. This may enable him to renegotiate union contracts, get rid of legacy pension and health-care costs, and shape the system up in ways not otherwise possible. That’s certainly an example of thinking the unthinkable.
So why not follow suit … and appoint an emergency financial manager for the state of Michigan? If it’s working for DPS and if Lansing can’t summon the will to get our financial house in order, why not try stronger medicine?