Fees

They’re Looking at Plundering Your Wallets… Again

Here comes your fuel tax and fee hikes.

Both sides, along with Gov. Rick Snyder, generally agree on the need for $1.2 billion a year in additional road funding, but they’ll need 54 votes to get it done. Cotter’s willingness to at least consider $800 million in new revenue likely increases the odds of a deal.

SnyderCalley“For me, it’s not just about the proportion — how much is new revenue and how much is general fund — but all the other details that go into making up a package,” Cotter, R-Mt. Pleasant, said Thursday. “I want to see what are the forms of new revenue, where’s it coming from and to what degree, but then also what other pieces of the package exist.”

The governor and legislative leaders from both sides of the aisle have been meeting regularly – twice in each of the past two weeks, according to Snyder — in hopes of reaching an agreement they all can live with.

“The lieutenant governor and I, I think it’s fair to say we both think there’s been a lot of progress in these meetings,” Snyder said last week. “Issues are coming up [indeed], we’re having a healthy discussion and people are trying to be good problem solvers. People are trying to come to a good solution.”

Cotter said he thinks they’re “very close” to a deal, but he also acknowledged he’s said that before.

“I’ve been saying for some time now that I’d like to get this to the floor in October, and I think we’re on a good pace to do that,” he said.

More unaccountable government and thievery HERE

Where’s the “future budget pressures” mentioned within the article?

That’s easy – Snydercaid Expansion. Remember that crap? Yep, those chickens are already coming home to roost.

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He really must not be looking very hard!

Don't bother me. I'm letting people think that I know what I'm doing.

Don’t bother me. I’m letting people think that I know what I’m doing.

 

When he’s not busy assuaging his troubled conscience with other people’s money or letting terrorists into Michigan for the very same reason, Gov. Rick Snyder (along with his BFF’s Lil’ Guv Calley, Sen. Meekhof and apparently Speaker Cotter) are still working diligently behind the scenes to shake down Michigan Motorists and businesses to fix the perpetual joke that is Michigan Roads.

I should stress how important the latter is, because the guv’s crew often “forgets”  that goods actually get onto those shelves at your local store via truck…not some transporter beam from Star Trek or magical fairies daintily waving their wands.

I also shouldn’t need to remind anyone here of Basic Econ 101, where my boss isn’t going to eat the cost of higher fees & taxes Gov. Snyder & Co. will eagerly impose on him. He (and I’ll venture a guess every other business as well) will pass most, if not all, of that cost along to you.

Just something to keep in mind the next time you run out to your local store for anything.

So where is MDOT flushing more of your hard-earned road funding down the toilet this week?

{Continued below the fold}

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Skewed priorities and reading between the lines.

Don’t you know that “Take a vote, not a vacation” doesn’t apply to the man at the top?

“It’s essential that making Michigan’s infrastructure safer remains a top priority. While voters didn’t support this particular proposal, we know they want action taken to maintain and improve our roads and bridges. The ‘relentless’ part of relentless positive action means that we start anew to find a comprehensive, long-term solution to this problem.” – Gov. Rick Snyder after the crushing defeat of Proposal 1 on May 5, 2015

Unless of course, you are on yet another “vacation” to peddle blueberries to the Chi-Comms?

Or, maybe that’s what he wants everyone to believe.

{More below}

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Unconstitutional: Great Lakes Water Authority Lease Violates Michigan Constitution

--- Absence of Enabling Legislation Clearly Violates Article III, Section 6 --- 40 Year Lease Period Clearly Violates Article VII, Section 30

GLWA Detroit Seal ImageFriday, the Great Lakes Water Authority board approved a 40 year duration lease of Detroit Water & Sewerage Department’s assets and operations outside of the city of Detroit. This approval passed by a 5 to 1 vote with only Macomb County’s representative on the GLWA board opposed. The terms of the lease subordinate the DW&SD to the GLWA, a new intergovernmental authority created out of the ashes of the City of Detroit’s bankruptcy by a Memorandum of Understanding.

This deal was constructed as a lease to evade the 1963 Michigan Constitution‘s requirement, under Article VII, Section 25, for a vote of Detroit’s electors to approve the sale of any public utility. However, by constructing the deal as a lease, the City of Detroit is essentially granting a lease franchise covering the DW&SD’s water and sewerage operations to GLWA. The 40 year term of this lease franchise clearly exceeds the 30 year maximum permitted by Article VII, Section 30 of our 1963 Constitution:Michigan Constitution of 1963 Article VII Section 30
Merriam-Webster defines a ‘franchise’ as “ the right to sell a company’s goods or services in a particular area; also, a business that is given such a right”. Exactly the nature of the GLWA lease agreement with the City of Detroit. Should you doubt that the City of Detroit constitutes a ‘company’, Merriam-Webster defines a ‘company’ as “ an association of persons for carrying on a commercial or industrial enterprise”. Exactly what DW&SD has been doing for over 100 years.

State Representative Kurt Heise (R-20th) from Plymouth has challenged the establishment of GLWA under the 1963 Michigan Constitution’s Article VII, Section 28:Michigan Constitution of 1963 Article VII Section 28
Taken together with the 1963 Michigan Constitution’s Article III, Section 5:Michigan Constitution of 1963 Article III Section 5
it establishes our Legislature’s authority over intergovernmental units. But these two sections do not unambiguously grant the Michigan legislature exclusive authority over intergovernmental units, so there is probably legal wiggle room here.  Contrary to Representative Heise’s contention, a good lawyer could make a case that the U.S. Bankruptcy Court could establish the GLWA under Article VII, Section 28 and Article III, Section 5.

However…..

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$ 3 Gas Across Michigan: Warming You Up For A Gas Tax Ratchet?

House Road Funding Package Puts Gas Tax Increases on Autopilot --- Tax on B5 Diesel for Heavy Trucks Cut 20%

Southfield, MI Gas Prices 12 June 2015

Southfield, MI Gas Prices 12 June 2015

Michiganders woke up this morning to discover that regular unleaded gasoline prices are now $ 3 per gallon, a $ .25 increase, or more, from yesterday. Refinery problems, summer driving season, and SE MI’s special fuel blend are blamed in the press, but really this price shock is an intended consequence the Federal Reserve’s zero interest policy and their determination to boost stock prices. Oil derivatives are cheaper than dirt when there is no cost to money.

Wall Street wasn’t happy early this year when plunging oil prices drove down stock averages. So someone is furiously selling off Treasury paper and buying oil & gasoline futures contracts. Treasury interest rates have been rising in lockstep with oil & gas prices, on the same days, even the same hours. Officially, no one knows who is behind these trades, but the Federal Reserve is sitting on $ 4 trillion in Treasury paper and is fighting any effort to audit their holdings. A coincidence? Not likely.

Your government extracting more money from your wallet.

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Southeastern Michigan Water Fight

Last Act of the Detroit Bankruptcy Stumbles Behind a Wall of Secrecy

Water is Money Image 2The final Detroit bankruptcy plan established a 14 June deadline to reach an agreement transferring operating control of the Detroit Water & Sewerage Department’s (DW&SD) assets outside of Detroit to the newly created Great Lakes Water Authority (GLWA). The State of Michigan, Detroit, Wayne County, Oakland County and Macomb County all signed a Memorandum of Understanding (MoU) creating the GLWA late last year, subject to a 200-day due diligence period. Under the MoU, the City of Detroit would receive a $ 50 million annual lease payment from the GLWA while retaining full control of DW&SD assets and operations within the city. Erstwhile DW&SD customers outside Detroit were promised a 4% cap on annual water and sewerage increases for a 10 year period, which have been running above 10% per annum, in residential bills, in most Southeastern Michigan communities.

In point of fact, what has actually been occurring are secret negotiations over future tax increases across Southeastern Michigan. Water rates have become a surrogate form of incremental taxation. These negotiations will set tax fee increment rates for decades into the future. For taxpayers ratepayers who haven’t even been born yet. How are these negotiations going?

No one who knows is talking. Why?

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