LANSING, Mich. — After another troubling report on emergency managers failing to properly disburse money to the state pension fund while in control of Detroit Public Schools, Senator David Knezek (D–Dearborn Heights) today moved to hold a floor vote on SB 734, which would repeal Public Act 436 of 2012.

“It seems like every day we’re presented with a new example of how state-appointed emergency managers have failed our cities and our schools,” Sen. Knezek said. “The emergency manager law is a failure. It’s time to put an end to this undemocratic experiment and instead work with schools and cities to provide the support they need to be financially stable.”

An April 26, 2016, Detroit News article revealed more mismanagement at Detroit Public Schools while under state control. Between June 2014 and February 2016, the state-appointed emergency manager failed to apply $30 million in federal aid to the school system’s beleaguered pension fund, in direct violation of the intended purpose of the aid.

More recently, the credit-rating agency Fitch noted that the appointment of emergency managers may not help restore financial solvency to distressed cities and may in fact have negative impacts on timely debt repayment.

“An independent task force, hand-picked by Governor Snyder, agrees this is a failed experiment. Fitch, a credit-ratings agency, agrees this is a failed experiment,” Sen. Knezek said. “There is no reason to allow this practice to continue.”

SB 734 was introduced Feb. 2, 2016. The Senate has yet to hold hearings on the bill, despite overwhelming evidence of emergency managers failing the cities and schools they were supposed to improve.

The vote failed along party lines.

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