(WXYZ) - Voters on Tuesday defeated a proposal to keep Public Act 4, a tougher emergency manager law.
The vote was a blow to Governor Rick Snyder who had been pushing for it.
On Wednesday, he said it was a disappointment, but will look at legislative options as we move forward.
There are emergency managers in eight Michigan cities and school districts.
"Finally, the little guy won," said Annie Carter, a Detroit Public School board member.
She said she's not opposed to intervention with DPS and it's financial struggles, but "the state needs to work with us".
LaMar Lemmons, DPS school board president, called the rejection of Proposal 1 "a victory for democracy."
Roy Roberts, who's the emergency manager for DPS released a statement saying, in part, "Until the vote is officially certified in 30 days i will continue to operate under the existing statue and Judge Murphy's order that I am responsible for finances and the Board of Education is responsible for academics."
Detroit Mayor Dave Bing issued the following statement today regarding the failure of Proposal 1:
"I am determined to continue with vital reforms now underway in the City of Detroit, despite the defeat of Proposal 1 by Michigan voters in Tuesday's election. I, like many of the citizens of Detroit, opposed the Emergency Manager provision of Public Act 4. However, Public Act 4 was a tool to help us implement our restructuring plan, by giving us more leverage with labor unions.
"In the face of the City's enormous fiscal deficit, I chose to negotiate a Financial Stability Agreement with the State of Michigan, rather than entertain the appointment of an Emergency Manager. The Financial Stability Agreement, approved by Detroit City Council last April, is still in place. We are fully engaged in implementing 25 City reform initiatives under that agreement. These reform initiatives are designed to improve the City's operational effectiveness and efficiency, and provide financial stability.
"I am confident that my administration, in cooperation with the Detroit City Council and the State of Michigan, will find the right path for continuation of our much-needed reforms. With or without the support of Public Act 4, our goal remains the reform of City government to better serve the citizens of Detroit."