Detroit elects fix-it CEO as mayor, but his hands could be tied
Mike Duggan, a business executive known for saving the city鈥檚 largest employer from near insolvency, will become the next mayor of Detroit in a year the city itself is on the brink of bankruptcy.
Mr. Duggan鈥檚 victory is historic 鈥� he is the city鈥檚 first white major since 1974. However, his skin color never became an issue in the race, and polls had him leading his nearest challenger, Wayne County Sheriff Benny Napoleon, who is black, by a wide margin.
Instead, Duggan won because he successfully presented himself as 鈥渁 turnaround agent,鈥� says Robin Boyle, chair of the urban studies and planning department at Wayne State University in Detroit. His experience in making the Detroit Medical Center (DMC), a coalition of eight hospitals, profitable in eight years was heralded by supporters who say his business acumen is what Detroit needs as it faces restructuring of its finances by a federal bankruptcy judge.
鈥淭here is a clear concern, a deep concern from the neighborhoods, that whoever is going to be running this city post-bankruptcy has got to have a clear sense of how the business of the city works,鈥� says Professor Boyle. Duggan鈥檚 victory, he adds, is less about ideological debates, and more about the desire to find 鈥渟omeone who can roll up his sleeves.鈥�
Duggan beat Mr. Napoleon, 55 to 45 percent. But it is unclear how much authority he will have going forward. Indeed, when Duggan assumes the mantle from current Detroit Mayor Dave Bing, who is stepping down after serving a full term in office, he will be forced to find a more conciliatory tone with Kevyn Orr, the emergency manager sent to Detroit by Michigan Gov. Rick Snyder (R) to assume total control of the city鈥檚 finances.
Experts say that Duggan鈥檚 role will be limited as long as Mr. Orr鈥檚 team remains in Detroit.
The city's liabilities are at $18 billion, and Orr鈥檚 team of restructuring experts are in the midst of trying to persuade a federal bankruptcy judge to allow them to file for Chapter 9 bankruptcy protections on the city鈥檚 behalf. The trial鈥檚 closing arguments are set for Thursday.
During the election, Duggan stressed that he opposed Orr鈥檚 appointment and said he will work to remove his post as soon as possible. It is unclear how long Orr will remain calling the shots in Detroit; the city council or the federal judge could renew his current tenure. What is known is that Duggan will need to establish an immediate relationship with Stacy Fox, Orr鈥檚 deputy, who is overseeing city operations and tasked with easing the transition.
Governor Snyder released a statement Tuesday saying his administration is 鈥渃ommitted to working collaboratively鈥� with Duggan and said the new mayor鈥檚 鈥渇inancial acumen and experience in turning around the Detroit Medical Center and other entities should serve him well in his new role.鈥�
Orr also released a statement saying that he, too, looked forward to working with Duggan 鈥渢o build a vibrant and strong future the citizens of Detroit deserve.鈥�
But some experts think Duggan will have a tough time wielding much authority so long as Snyder and Orr are in charge.
鈥淗e鈥檚 not going to have a lot of success with Governor Snyder,鈥� says Ed Sidlow, a political scientist at Eastern Michigan University in Ypsilanti.
Tensions are high. Unions representing current and former public workers are worried that, if Detroit is granted Chapter 9, Orr will present the judge with a plan that includes cuts to health care and retiree benefits. The new mayor, like outgoing Mayor Bing, can provide suggestions, or serve as an advocate for the workers, but ultimately, he will have little authority in the final outcome.
鈥淲hen the cameras get turned off and the new mayor goes to work, it seems to me the first thing that has to be dealt with is not only the bankruptcies, but the more personal impact of the bankruptcies, such as the pensions," says Professor Sidlow. "You have a whole generation of folks who in good faith worked for the city whose pensions are now in peril. Those street-level questions brought about by the bankruptcy are what he鈥檚 going to have to answer.鈥�
Big labor remains wary of Duggan, saying his efforts to block nurses from organizing during his tenure at the DMC is a sign he may not have unions' best interests at heart in dealing with Orr.
Labor groups in Detroit have 鈥渉ad mixed experiences鈥� with Duggan 鈥渙ver the course of his business career鈥� but 鈥渆xpect him to honor his campaign commitments to protect retirees, resist privatization,鈥� and make Detroit鈥檚 economy work for all residents,鈥� said Chris Michalakis, president of the Metro Detroit chapter of the AFL-CIO, in a statement Tuesday. 鈥淲e look forward to working with Mayor Duggan towards those ends.鈥�
The new mayor will need to work with the state to ease the transition, rather than create roadblocks that will ultimately impede immediate needs, such as shoring up funds for emergency services, street light repairs, and more, experts say.
Duggan appeared eager to establish good faith.
鈥淚t will be easier if we have a positive and constructive relationship with the governor and emergency manager,鈥� Duggan told the Detroit News Tuesday before polls closed.
Snyder did not endorse a candidate, but said he hoped his team could create a positive relationship with the new administration.
Speaking at a luncheon at the Detroit Athletic Club Tuesday, he said, 鈥淭here鈥檚 a lot of work to be done. It should really be all-hands-on-deck to work together.鈥�
Also helping Duggan was money. According to Crain鈥檚 Detroit Business, "super political action committees" backing Duggan raised $1.46 million by late October, while Detroit Forward, which supports Napoleon, raised $303,750.
