CHICAGO - Michigan officials filed an appeal Tuesday afternoon against a circuit court decision that has prevented the state team reviewing Detroit’s finances from meeting.
The state filed with the Court of Appeals and asked for a response from the court by April 4 at noon, according to state Treasury spokesman Terry Stanton.
Gov. Rick Snyder faces an April 5 deadline for declaring whether or not to appoint an emergency manager or authorizing a consent agreement that leaves Mayor Dave Bing in power and outlines various goals aimed at stabilizing the troubled city’s financial position.
Ingham County Circuit Court Judge Joyce Draganchuk late Monday issued a temporary restraining order that prompted the state team to cancel a meeting set for Tuesday morning. The team was expected to sign off on a consent agreement at that meeting.
“We are extremely disturbed by this latest ruling,” Stanton said. “The biggest question is, will an appeal be addressed before the April 5 deadline for the governor to make a determination as required by statute?”
It was the latest in a series of legal setbacks to the state as it races to negotiate a final consent agreement with the cash-strapped city.
Most rulings stem from a pair of lawsuits that argue the state review team has violated Michigan’s open meetings act by meeting in private.
Draganchuk’s ruling prohibited the state team from voting on a consent decree or meeting to discuss it until a hearing next week.
If the decision holds, the governor will have to act on the state team’s most recent recommendation, which is that severe financial stress exists but no consent agreement is in place.
In that case, Snyder’s only choices would be to declare either that no financial stress exists or to declare a financial emergency, Stanton said.
If he declares the latter, the city has seven days to request a hearing before the State Treasurer.
Also Tuesday, a federal judge was hearing arguments on a lawsuit filed by a coalition of the city’s unions that argues the state has violated federal due-process rights and the federal and state constitutions by pressuring the city to not ratify recently negotiated union contracts.
The mayor’s office has signed off on the latest consent agreement. If the state team is able to sign it, the last remaining vote comes from the City Council, which Tuesday afternoon was in the midst of its third day of debate and public testimony on the document.
