By TEREASA NIMS
Sunday Times Newspapers
ALLEN PARK — The Michigan Department of Treasury is reimbursing the city of more than $3,000 after the municipality was inappropriately required to pay its emergency manager’s health insurance.
At the request of constituents, state Sen. Hoon-Yung Hopgood (D-8th District), wrote a letter to Michigan Gov. Rick Snyder regarding the legal requirements and responsibilities placed on the municipality under Michigan’s Local Financial Stability Choice Act, PA 436 of 2012.
“I am concerned that the City of Allen Park is being required to pay for the health insurance of its Emergency Manager when state law only provides for the liability insurance to be paid by the municipality,” Hopgood wrote. “Additionally, the law is very clear that the state shall pay the ‘compensation’ for the Emergency Manager, which by general human resource definition would include non-monetary benefits such as health insurance. It appears, therefore, that heath insurance was incorrectly included as a requirement in the state’s contract with the EM.”
Hopgood further said he believes the state lacks the proper authority to bind another unit of government for costs which are not required under the statute and asked for an audit to examine the “improper expenditures.”
Michigan Deputy State Treasurer Wayne Workman answered Hopgood’s request saying the matter was investigated and after consulting with the Michigan Attorney General, determined the state is responsible for Emergency Manager Joyce Parker’s health insurance. Workman wrote that the state will continue to reimburse the city quarterly for any additional health care costs associated with Parker.