Phillips v. Snyder

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When the finances of a Michigan municipality or public school system are in jeopardy, state law, the Local Financial Stability and Choice Act, Public Act 436, allows temporary appointment of an emergency manager, with extensive powers that arguably displace all of those of the local governmental officials. Plaintiffs, voters in areas with emergency managers and local elected officials in place, claimed that, by vesting elected officials’ powers in appointed individuals, the law violates their substantive due process right to elect local legislative officials and violates the Constitution’s guarantee, Article IV, section 4, of a republican form of government. They also asserted claims under the First and Thirteenth amendments and under the Voting Rights Act. The Sixth Circuit affirmed dismissal. It is up to the political branches of the federal government to determine whether a state has met its federal constitutional obligation to maintain a republican form of government. The financial conditions of plaintiffs’ localities are the reasons for the appointments of the emergency managers. An entity in a distressed financial state can cause harm to its citizenry and the state in general. Improving the financial situation of a distressed locality is a legitimate legislative purpose, and PA 436 is rationally related to that purpose. View "Phillips v. Snyder" on Justia Law