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    Tag: EFM

    All Of A Sudden

    By JGillman, Section News
    Posted on Wed Dec 04, 2013 at 10:21:10 AM EST
    Tags: Michigan, Detroit, EFM, Kevyn Orr, Bankruptcy, Restructuring, Futility, Higher Taxes, Pensions (all tags)

    The repealed Emergency Financial Manager law probably seems like a better idea now; at least to those who spent great amounts of money to defeat it.

    Its not as if they weren't warned.

    State appointed Emergency Financial managers couldn't touch any pension contracts whatsoever. As a state initiated law, it would  have run afoul of article 9, section 24; the state's own constitutional protection for pensions.  The EFM law was however, a tool to readjust current contracts not associated with those pensions.  Federal courts would have no say at that point.  But labor unions, and certain municipalities' elected bodies preferred to not allow such a thing.

    Instead, a bankruptcy, fully clarified in the constitution as being under federal jurisdiction, takes the state's constitutional protections of those pensions off the table.


    (3 comments) Comments >>

    "I'm Gonna Tell On You!"

    By JGillman, Section News
    Posted on Fri Jul 19, 2013 at 04:12:47 PM EST
    Tags: Michigan, Detroit, EFM, Kevyn Orr, Bankruptcy, Restructuring, Futility, Higher Taxes, Pensions, Judicial Playthings, Rick Snyder, Toys (all tags)

    Seriously, its really becoming US V THEM.

    The governor actually does something that makes sense, (and only 2-3 decades late) and the protectors of leftist failures jump into action. And, the kids are getting hurt feelings. Yesterday's Detroit Bankruptcy filing made little Rose cry.  She thought she had beat the bad man to the punch.  So she has retaliated:

    "Aquilina said she would make sure President Obama got a copy of her order."
    THAT will teach that bad boy a lesson.

    Once uncle Barry hears about it, he's going to take Ricky's bridge away.

    (6 comments) Comments >>

    A Message To Our Legislators - Beware False Choices

    The Corpse Is Still In The Morgue

    By JGillman, Section News
    Posted on Tue May 14, 2013 at 11:41:32 AM EST
    Tags: Michigan, Detroit, EFM, Kevyn Orr, Bankruptcy, Restructuring, Futility, Higher Taxes, Pensions (all tags)

    Who will claim the decaying body that is Detroit?

    Kevyn Orr, The emergency financial manager, was given an unworkable task. In a city that has been reassured repeatedly that it is too big to fail, the lights are going out. All manner of economic development incentive paid for by Michigan taxpayers as yet proves to be insufficient to generate the activity necessary for basic government services, and a sustained infrastructure. Four decades of progressive politics and fear of calling out bad decision making as it happened; fearing the sting of racial politics, and lack of compassion.

    Its far too late now.

    Banks that have loaned Detroit operating cash should count those loans as losses.  Retirees that did their jobs, and counted on their employer to manage finances and their retirement moneys appropriately might wish to reevaluate their portfolios. Orr's current status report?

    "Excluding proceeds from debt issuances, the City's expenditures have exceeded revenues from fiscal year 2008 to fiscal year 2012 by an average of $100 million annually. These financial shortfalls have been addressed with long term debt issuances (e.g., $75 million in fiscal year 2008, $250 million in fiscal year 2010 and $137 million in fiscal year 2013) and by deferring payments of certain City obligations, such as contributions to the City's  two pension funds."

    The accumulated unrestricted deficit was $326.6 million at the end of fiscal year 2012. Fiscal year 2013 (year ending June 30, 2013) is currently projected to add approximately $60 million to the accumulated unrestricted deficit balance (excluding the impact of the $137 million debt issuance).

    But that's not all.

    There are some other interesting items that have a familiar smell

    Continued below the fold.

    (4 comments, 783 words in story) Full Story

    Money for Dredging is a Problem?

    By Corinthian Scales, Section News
    Posted on Thu Mar 07, 2013 at 03:22:09 PM EST
    Tags: Hooray for Hollyweird?, Bill Ford, Silverdome, EFM, Pontiac, Crony Capitalism, That's Bulls#!t, Waterways, Harbors, Harbor of Refuge, Commerce, Littoral Property, Watercraft, registration fees, gas tax, Sales Tax, Tourism, Dredging, HB 4197, SB 0164, One Term Nerd (all tags)

    Consider this a double feature with CS, and Jarrett Skorup at Mac Center

    The Disney blockbuster "Oz: The Great and Powerful" opens tonight. The film cost the studio about $200 million to make, but Michigan taxpayers chipped in substantially for the production through the state's generous film subsidy program. In fact, the state paid more per taxpayer than the average price of a movie ticket - Michigan residents should be seeing the film for free.

    Michigan has 4.5 million individual taxpayers, and the state gave the film studio $39.7 million to shoot in Pontiac. That works out to a subsidy of $8.82 per taxpayer while average ticket prices nationwide are $7.96.

    The subsidy was granted in 2010 when the program refunded up to 42 percent of Michigan expenses to film makers - essentially a check from the treasury to Hollywood studios. The program expired, but the Legislature, dominated by Republicans, overwhelmingly decided to keep it around.

    Despite "conservatives" who claim to not like the government picking winners and losers and "liberals" who say government shouldn't benefit large corporations and big business, Michigan politicians continue to spend taxpayer money on the program. The state has budgeted $50 million  this year with political leaders on both sides of the aisle pushing for more.


    What total crap.  Lansing could only find a way to free up 29% of the monies for maintaining our waterways in comparison to what Hollywood ripped off on one movie filmed in a mismanaged broke-ass city with an EFM.  You read that right.  $11.5M, and STEALING $8.7M from projects already underway to pay for dredging.

    The Governerd's half billion dollar piggy bank?  Hands off.  Damn near $40M in our tax dollars sent to Disney with assets totaling $74.8 Billion?  No problem.  The Water Wonderland?  Take a hike.

    This is why politicians are despised.

    (7 comments) Comments >>

    Saturdays Divertere: The Deadbeat Of America

    By Corinthian Scales, Section News
    Posted on Sat Oct 27, 2012 at 09:32:15 AM EST
    Tags: Michigan, Chevrolet, 2012, Superbowl Ads, Bob Lutz, TARP, Chevy Volt, China, What Detroit Looks Like, Mayan Apocalypse, EFM, Boiling Frog Syndrome (all tags)

    (2 comments) Comments >>

    EFM Ballot Challenge Hits The Wall

    By JGillman, Section News
    Posted on Fri Apr 27, 2012 at 09:37:58 AM EST
    Tags: Board of Canvassers, Michigan, EFM, Petitions, Font Size, Rules, Law, Partisanship, Republicans, Democrats (all tags)

    Rule of law decides the fate of a lefty effort to protect the status quo in troubled municipalities.

    The Democrats have not liked the EFM law since it had its new dentures installed under the Republican legislature, and Governor Rick Snyder.  Once the realization that bloated contracts might actually be dissolved to preserve solvency for some governments, activists in labor and the donkey party got to work on placing a ballot measure before the voters.  The underlying hope of course, would be to inundate the airwaves with imagery of the starving kids of municipal workers and their uncertain futures.  Riding the guilt train all the way to the election where likely another 7 other ballot initiatives will reside.

    But once again, someone forgot to dot an 'I'.

    Or at least forgot to check the validity of the petitions used with the canvassing board BEFORE collecting 226,000 signatures.  Perhaps if they had done so, they might be a little more satisfied with the result.  Norm Shinkle, one of the board members, weighed in:

    "Outside the meeting room, Shinkle said it was clear that Stand Up for Democracy's petitions did not comply with state law and that the group should have had the documents' format approved by the board before it started collecting signatures.

    "None of this would have occurred today if they had their petition approved like almost everyone else does," he said. "The petition was defective." "


    Defective.  Big 'D' .. 'efective'.

    Its easy it seems, for the Dems to cry foul.  Party lines!  Partisanship! Favoritism! Those rotten Republicans!!!

    Yet when one looks at the vote, split as it was along party lines, one should also weigh in the rule of law. And in doing so, see the partisanship FOR BREAKING THE LAW. Or perhaps bending it.  To assume that the Republicans are unfair by rejecting it against the will of the 'other' partisans, is to ignore the fact that the 'other' partisans are asking for an acceptance of the petitions, even illegally.

    In the end?  The canvassers rejection will probably be held up in the appeals court, and the MI supreme court will not hear it.

    (6 comments) Comments >>

    EFM For Detroit - Racist?

    By JGillman, Section News
    Posted on Tue Jan 17, 2012 at 09:24:46 AM EST
    Tags: Michigan, Snyder, Detroit, Conyers, Sharpton, Race Baiting, EFM, Emergency Financial Manager (all tags)

    It needs one, and the sooner the better. But racist?

    Frankly, giving credit where due, Snyder and Dillon will be right on this one. The city that hemorrhages perpetually ought to have the benefit of the financial manager immediately.  Of course the looming probability it will happen has attracted the race baiters such as Al Sharpton along with congressman [READ THE BILL!?!] John Conyers.  Sharpton led the crowd protesting in front of Governor Rick Snyder's home. From the Examiner:

    "The men are using Martin Luther King Day for the protest in the style of the great civil rights leader. The law has been used by the current governor and his predecessor Jennifer Granholm to prevent civil bankruptcies in Benton Harbor, Flint, Pontiac, and Detroit Public Schools. The argument for the EFM is that it is the last chance to avoid a municipal default that would lower credit ratings for the state and local communities across the state."
    Sharpton and Conyers could care less about credit ratings, defaults etc. Its about them, and their own aspirations, using ignorance to advance their own notoriety.

    The message Sharpton was there to deliver?
    Detroit is Broke.
    Snyder's EFM is targeting Detroit.
    Blacks live in Detroit.
    Snyder is targeting Blacks.

    Keep putting the worm on it baiters. there might even be people who believe what you are doing is right. But no amount of marching in front of the guv's mansion will alter the reality of SE Michigan.

    Broke means broke.  If there is no money to pay the bills, the interest on the bills, or the accountants to fudge the books, its all over. Allowing the parasite known as Detroit to continue sucking any vibrancy out of the Michigan can happen no longer.  Conditions have been met, and under the new EFM law things must change.  Everything that happens in Detroit is NOT about race, though much might be about the corruption brought about in the name of affirmative advancement.

    (25 comments) Comments >>

    Incremental Costs

    By Corinthian Scales, Section News
    Posted on Mon Sep 19, 2011 at 12:39:14 PM EST
    Tags: SCOMI, Justice Markman, Kathleen Markman Esq, AG Schuette, EFM, Governor Snyder, Too Divisive (all tags)

    Markman's wife, Kathleen, who works for the Attorney General's Office, is one of two lawyers representing state officials in a federal lawsuit in which a city of Detroit pension fund alleges the emergency manager law is unconstitutional.

    A recusal by Markman would be significant because it would erase the 4-3 majority held by justices nominated by Republicans.

    Read the rest here

    (2 comments) Comments >>

    Next 8 >>
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