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    Tag: DIA

    Don't Bail Out Detroit

    By JGillman, Section News
    Posted on Thu Jan 16, 2014 at 10:19:48 AM EST
    Tags: Mackinac Center, Detroit, Bailouts, DIA, Taxes, Fiscal Malpractice (all tags)

    Apparently, there is a caveat to recent 'good news' for the DIA.

    Reposted from The Mackinac Center for Public Policy in time for Rick Snyder's State of the state address tonight:

    Don't Bail Out Detroit with State Tax Dollars

    By Michael Lafaive
    The recent announcement that philanthropic foundations may donate $330 million to help the Detroit Institute of Arts, which would also help city pensioners avoid the consequences of Detroit government mismanagement, sounds like great news.

    Unfortunately, there may be a hook: A requirement that the state treasury contribute, which would convert voluntary private generosity into a coerced taxpayer bailout.

    A state bailout of Detroit is a terrible idea. It creates moral hazard and adds to the overly generous financial support the city has for years received from state taxpayers.

    And it's unfair. ~ Continued below the fold

    (4 comments, 722 words in story) Full Story

    Soon We Will Know

    By JGillman, Section Multimedia
    Posted on Mon Dec 16, 2013 at 12:05:39 PM EST
    Tags: DIA, Kevyn Orr, Detroit, Priorities, Bankruptcy (all tags)

    Whether union pensions or the family jewels are more important,

    Christies is supposed to have a valuation of the city owned art for Detroit emergency manager Kevyn Orr this week.  

    This might be fun.

    (1 comment) Comments >>

    A Message To Our Legislators - Beware False Choices

    The Buck Stops ... I Don't Know

    By Corinthian Scales, Section Multimedia
    Posted on Fri Oct 11, 2013 at 08:51:28 AM EST
    Tags: Governor Snyder, Andy Dillon, Rich Baird, Kevyn Orr, Transparency, Pay For Play, NERD Fund, Public-Private Partnerships, Pay To Play, DIA (all tags)

    Spoken like a CPA with a law degree.

    The fallout?  Definite maybe.

    (2 comments) Comments >>

    You're in the money! You're in the money! You've got a lot of what WE want to get along!

    By KG One, Section News
    Posted on Sun Oct 06, 2013 at 11:50:00 AM EST
    Tags: Detroit, Bankruptcy, Gov. Rick Snyder, EM Kevyn Orr, DIA, Art Tax, "New" Art tax?, Guess who is going foot the bill this time?, What ever happened to the Macomb County Art Institute Authority?, Oakland County Art Institute Authority?, Wayne County Art Institute Authority?, DIA Shakedown, Graham Beal, Annemarie Erickson, Eugene Gargaro Jr, Cynthia Pasky, Saul Green, Sen. Randy Richardville, Rep. Jase Bolger, Mark Hackel, L.Brooks Patterson, big-government republicans, republican kakistocracy?, Rep. Frank Foster, Rep. Rob VerHeulen, Tell me guys it isn't so? (all tags)

    Most people here are well aware of the fact that the City of Detroit has filed for bankruptcy.  Most people are also aware of the fact that Lansing has assigned an Emergency Manager to financially clean house.

    Long-time readers are aware that this inevitable outcome was as plain as day to most local observers like myself, and borrowing a page from the President, want to make this as process as painful as possible to the principles involved, so that the actions which have caused it are never repeated again.


    Yes, the EM appointed by Gov. Snyder has brought some baggage with him.

    Yes, he has made a few enemies along the way.

    Yes, even the Governor himself has drawn himself into the fray by how the EM is compensated and most importantly by whom.

    But in his defense, he has made some tough decisions which needed to me made.

    Staffing is being addressed.

    Benefits are being brought to a manageable level, given the resources available to the Detroit.

    Assets are being looked at. And when appropriate, are being used to pay off the debts incurred by the city due to it habitual fiscal ineptitude.

    The latter isn't really making any new friends with those in charge of overseeing Detroit's Art Museum, a collection wholly owned by the City of Detroit.

    Yes, I'm talking about the DIA.

    Long-time readers may also recall how the DIA managed to successfully con the Tri-County Region into believing that the DIA was in the poor house and ram through a regional art tax to fund their little operation.

    With their meal ticket now in jeopardy because two of those counties aren't keen on taxpayer money going to bailout Detroit, a fact they were repeatedly warned about when the respective county boards placed this tax on the ballot, the DIA Board is looking at new ways to pull their collective fat out of the fire.

    You're going to love what scheme they have come up with this time.

    {Details after the fold.}

    (1243 words in story) Full Story

    Sorry Bill But

    By JGillman, Section News
    Posted on Tue Jul 30, 2013 at 09:24:43 AM EST
    Tags: Michigan, Detroit, Corruption, AG, Bill Schuette, Garage Sale, DIA, Constitution, Pensions, Uh Oh. (all tags)

    You are wrong this time.

    The bizarro side of the world is wondering what you might be up to, but we have less tolerance for the games.  Don't play on their turf, because at some point you will realize all the friends you brought with you are gone. A realization of the truth will make short work of this:

    "Consistency and the state constitution demand that Attorney General Bill Schuette fight to protect the pensions of Detroit retirees from being downsized in bankruptcy court. It's Schuette's job to defend state laws, and he can't pick and choose which ones he fights to protect.

    Schuette filed Monday to intervene in the bankruptcy proceedings on behalf of pensioners.

    The move puts him at odds with Gov. Rick Snyder, who supports Emergency Manager Kevyn Orr's position that retirees will have to sacrifice along with other creditors to resolve Detroit's $18 billion debt."

    Of course even the editorialist will figure it out quickly enough.

    The Michigan Constitution has many things that need to be enforced, but Article 9 Section 24 cannot be used in this case. The average Joe can tell you that Article I, Section 8, Clause 4 of the US constitution says so.

    "Both state legislation and state courts tended to use debtor-creditor laws to redistribute money from out-of-state and urban creditors to rural agricultural interests. Under the Articles of Confederation, the states alone governed debtor-creditor relations, and that led to diverse and contradictory state laws. It was unclear, for instance, whether a state law that purported to discharge a debtor of a debt prohibited the creditor from trying to collect the debt in another state. "
    Ah, Detroit. Bankruptcy, being one of the (few) enumerated powers of the federal government pretty much throws a bucket of Strohs river water on what might be a flickering candle of hope that Schuette's words are said with any seriousness. In a few years no one will care what he does now anyhow.

    The constitution of the US is primary. Federal bankruptcy law which is derived from specific mandates it is absolute under this example.

    But there IS a constitutional issue the Attorney General can investigate.

    (1 comment) Comments >>


    By JGillman, Section News
    Posted on Wed Jul 24, 2013 at 11:31:36 AM EST
    Tags: Michigan, Detroit, Corruption, Frank Kelley, Garage Sale, DIA, Constitution (all tags)

    Arguments being forwarded by labor acolytes is that AG Bill Schuette is supposed to defend the constitutionally protected pensions of Detroit's workforce.

    There is no constitutional protection. If anyone can find it in the 1963 (current) Michigan State Constitution, please feel free to point it out.  I must concur with McLellen's statement:

    "Republican barrister Richard McLellan, a state constitutional expert, said the constitution's language regarding pensions does not bind the state to protect pensions of municipal employees.

    "It doesn't say the accrued and financial benefits are guaranteed by the state -- it doesn't say that at all," McLellan said."

    It really doesn't.

    And the aging/deteriorating legal brain of Frank Kelley saying so doesn't make it the truth.  Frankly, even in his BEST years, Kelley overlooked rampant corruption at all levels in Detroit, allowing the city to fall into the condition we now find it.

    Detroit pensioners, you HAD your chance.

    Many of them in fact. Including an EFM law which would have allowed the culling of waste without the possibility of federal judges mitigating pension levels. Instead, your best hope now is that a great big garage sale of on a DIA scale saves your rears.

    (1 comment) Comments >>

    Election Results Subject To Constitutional Challenge

    By JGillman, Section News
    Posted on Sun Jul 14, 2013 at 01:13:58 PM EST
    Tags: Michigan, Constitution, Bonds, Millages, DIA, Property Owners, Ad Valorem, Taxes, Redistribution (all tags)

    Better check those election results.  - Reposted from GROW.TC

    It seems the state has been overlooking a fundamental restriction already in place when certifying election results for 5+ year millages and Bond requests.  Has there been a validation for electors established to determine if the right to vote on certain issues?

    Typically, those who show up for an election for a millage are unchallenged as to their ability to vote on such issues.  There are no instructions that stipulate the law, as established by the constitution REQUIRES a real stake in such issues printed on the election forms (ballots), and there are no alternate means to prevent abrogation of constitutional statute.  The Michigan Constitution is very clear:


    § 6 Voters on tax limit increases or bond issues.

    Sec. 6. Whenever any question is required to be submitted by a political subdivision to the electors for the increase of the ad valorem tax rate limitation imposed by Section 6 of Article IXfor a period of more than five years, or for the issue of bonds,  only electors in, and who have property assessed for any ad valorem taxes in, any part of the district or territory to be affected by the result of such election or electors who are the lawful husbands or wives of such persons shall be entitled to vote thereon. All electors in the district or territory affected may vote on all other questions.

    History: Const. 1963, Art. II, §6, Eff. Jan. 1, 1964.
    Former Constitution: See Const. 1908, Art. III, §4.

    Uh oh.

    A question we should be asking might be: "Is a passed millage request subject to legal challenge based on the inability to verify the legal status of the electors voting on such issues?" In other words, if you don't own property you cannot vote on a bond issue, so is your ballot restricted, or not?

    Stay tuned.

    (11 comments, 534 words in story) Full Story

    It Has To Be Painful

    By JGillman, Section News
    Posted on Fri May 24, 2013 at 08:34:54 AM EST
    Tags: Michigan, DIA, Detroit, Bankruptcy, What Do You Expect?, Treasures, Responsibility, Assets (all tags)

    Or else no one learns a damned thing.

    Detroit's assets and connected operations are ALL potential targets of a chapter 9 bankruptcy. Wheter its the electric service or an island, OR a publicly financed display of polished feces on a marble stand. The Detroit News reports of Kevyn Orr's warning to Detroit Administration that nothing is 'off the table':

    " The city's new emergency manager has told the Detroit Institute of Arts it may "face exposure to creditors" if the city is forced to seek bankruptcy protection, a spokesman said Thursday night.

    "This is a precautionary measure," said Bill Nowling, spokesman for Kevyn Orr, the city's emergency manager.

    Nowling said while there is "no plan on the table to sell any asset of the city ... it is possible that the city's creditors could demand the city use its assets to settle its debts."

    And why wouldn't they?

    All of the warnings of financial collapse to the Detroit administration and city council have fallen on deaf ears for decades. For those same decades, the answer has been to personally raid the city piggy bank, allow infrastructure to fail, and the voters have rewarded that decision making with reelection and support; reinforcing bad decision making.

    Clearly its time to cut the city loose to its destined end.

    A little hard love could go a long way.

    (2 comments) Comments >>

    Next 8 >>
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