Tag Archive for Bailouts

Busy Times

The posts are as usual high quality, but currently a little more sparse because of some ongoing election efforts.

10x25MM has done a fine job pointing out the DPS foibles, and this morning reminds me that bankruptcy really was the legitimate option for the failed district.  It appears that even after 617 Million has been approved, no one knows who is in charge yet. From the Detroit News:

Davis, who has been board president for two years, on Sunday said Lemmons was making his move.

“LaMar Lemmons is trying to hijack the ship, but he is not currently the president, even though he would like to be.”

Both insist they are following the June 9 board meeting results even though the stint is short..

Boys. boys…  Just remember, the Captain goes down with the ship.

In any event, I mentioned election efforts, right?  Below is a radio ad I have prepared to run this coming week, and then again closer to the election. I thought it might be of interest, and that THIS TOO might be of interest.  Higher taxes.. Right?

You Betcha! (8)Nuh Uh.(0)

DPS Down Payment A Major Mistake.

What are these legislators thinking?

shackles copyOperation ‘Can Kick’ In Full Swing. (re-posted from jasongillman.com)

Its for the children, right? HB5296, a $48.7 Million bill to get DPS through the school year, met little resistance from our state legislature, with seven senate, and only four house members opposing the final package. How could anyone vote to essentially close the doors? Its a valid question, and the intent should be considered honorable. However, an honest assessment of the overall situation can only remind us that it is with the best intent that we fail our children once again.

If the vote to hand over the money eradicated all debt, and set the course for district solvency, it would be hard to argue against such logic. However, the greater debt and liability still exists, and the precedent is set for the remaining $700,000,000 bailout that is next to come for DPS. Even that number is of questionable sufficiency, and is likely to be higher. Even with a bailout of this magnitude, it would be foolish to think it would be the end of hands out from a district that has produced 25% graduation rates, all the while receiving the highest per capita foundation payments.

And then there is the question of mismanagement being simply benign, or instead as a purposeful quest, evidenced by new indictments of a dozen prominent administrators within the district. Surely this is merely the tip of the iceberg.

Let us not forget also, that Detroit Schools represent only a part of the state’s public education apparatus. To be sure, it is not the only school district in Michigan that is facing obligations that seem insurmountable. What are we to do next when Grand Rapids Schools, Lansing, or even Traverse City Area Public Schools cry “No Mas!” throwing up their hands in futility?

You Betcha! (13)Nuh Uh.(0)

Why Are We Bailing Out DPS Again?

Detroit is flush with taxpayer cash.

Not its own taxpayers mind you, but nevertheless, it has a spigot it can apparently turn on at will. A Granholm era program that somehow still exists and ‘guarantees Detroit HS graduates two years of college will apparently come out of the taxes collected for schools.  Even after getting the State bailout money going forward?

Duggan on Tuesday said that in the 2018-19 tax year tax dollars from the growth of the city will start to go into the scholarship fund.

“What the chamber has done is raise the money to create a bridge for that,” he said. “We can’t expect the chamber to raise scholarship money forever. This is the way that it was intended to work. They’ve done a wonderful job in the short-run. We will have funding out of the education tax in the long-run.”

The city forecasts the tax capture, once effective, would provide funding for the next two decades, ranging from $1 million per year up to $4.5 million projected in 2035, according to property value estimates rooted in the city’s bankruptcy Plan of Adjustment.

Money is fungible.

Check.

Ask your legislator how they could allow this to go on.

H/T 10x25MM

You Betcha! (15)Nuh Uh.(0)

Too Big To Fail

The stage is set for more mis-'appropriations' ..

malfeasanceHow on earth could any legislator demand accountability after voting to pay for the ongoing malfeasance of the DPS?

With a vote of 104-5, the Michigan House of Representatives cleared the deck for the ultimate prize of over $700 Million for continued operations.

Passed 104 to 5 in the House on March 17, 2016, to appropriate $48.7 million to keep the insolvent Detroit school district afloat until the end of the current school year. This is essentially a “down-payment” on a larger bailout package whose details have yet to find a consensus (the House majority wants more education reforms). The bill essentially “borrows” the money from a state account used to pay for college scholarships, and also places the Detroit school district under the same state oversight commission created to oversee the city after its 2014 bailout(see House Bill 5385).
Who Voted “Yes” and Who Voted “No”

we just need to get em to the end of the school year,” right?

Anyone who thinks there will be a plan from the current legislative slurry to fix the fundamental problems with the DPS is lying to themselves.

Even worse, they are lying to the kids who suffer under the inability of the DPS to teach.

You Betcha! (14)Nuh Uh.(0)

Detroit Schools Bailout Opposed

MRG Poll Shows Michigan Voters Strongly Oppose Using Taxpayer Money for DPS’ $715 Million Bailout.

bailoutsSome information from the Michigan Association of Public School Academies

MAPSA notes that the the poll is very timely, because the bailout is up for a vote today.

As expected, Michigan voters strongly oppose using taxpayer money to pay off the Detroit Public Schools’ $715 million in debt, according to a new poll by the Marketing Resource Group (MRG). The poll of 600 likely Michigan voters, commissioned by the Michigan Association of Public School Academies, was conducted Feb. 22-27.

Statewide, only 33 percent of voters favor using taxpayer money to pay off DPS’ debt, while 56 percent oppose it (with most of those saying they “strongly” oppose it). Even among Detroit voters, sentiments are almost evenly split, with 40 percent favoring the bailout and 38 percent opposing it. In the entire Metro Detroit region, the bailout also isn’t popular, with only 37 percent favoring it and 52 percent opposing it.

You Betcha! (11)Nuh Uh.(2)

The City Of Perpetual Gifting

Detroit Public Schools continues the fiscal drain on Michigan Taxpayers.

mich-holeThe gravity exerted by SE Michigan is nothing short of incredible.

Bailouts of Arts, Pensions, Water systems, and of course the cherry on the sundae, school debt.  From today’s Cap-Con, Summarized here:

“Various bailout plans are currently under discussion in Lansing as an alternative to entering federal bankruptcy court. One plan pitched by Gov. Rick Snyder comes with a $710 million price tag.”

Don’t make any plans with that mattress money folks.

 

 

You Betcha! (12)Nuh Uh.(0)

Prop 1…Detroit’s ‘River’ of Opportunity

Prop 1 is for roads???...Hardly...

Detroit is deadDetroit’s ‘Core’ a ‘Common’ problem…

Being a ‘newbie’ senior citizen, I’ll have to rely on the ‘old school’ math, but…let’s at least try to sum this up, shall we???

We don’t have to go back too far, let’s just start with the Guv’s 2012 budget, and it’s expansion since then… http://ballotpedia.org/Michigan_state_budget_%282011-2012%29#Deal_negotiated

$47 billion for 2012, and now asking $53 billion…and an estimated $2 billion more each year in tax increases proposed in Prop 1…Just where is all this money going???…Let’s follow some (most) of it…I have…

Starting with the Detroit bankruptcy bailout, $195 million, our State tax money…We’ll try (try, that is) to keep a running total…Stay with me here, the ‘River” gets murky in some spots…http://www.freep.com/story/news/local/detroit-bankruptcy/2014/11/08/detroit-bankruptcy-timeline/18680129/…Speaking of rivers, let’s cross this one… http://blogs.windsorstar.com/news/snyder-canadian-leaders-urge-washington-to-fund-dric-customs-plaza. The $550 million Canada has promised for the bridge construction is a loan, to be repaid from tolls, but that’s another story entirely…So Detroit has $195 million in State money to get itself out of Court…

You Betcha! (17)Nuh Uh.(0)

If RINOs Fought Democrats as Hard as They Fight TEA Folk

Yessirree. They’ve been content being the minority Party at the table ever since the big spenders under Bush, gave up both chambers to Reid, and Pelosi, in November, 2006.

You Betcha! (14)Nuh Uh.(3)

This Would Make me Crap my Pants

Ellis, might want to consider sending some hush monies

“Bottom line, I strongly endorse Brian Ellis because he will be an effective conservative voice and a consistent conservative vote for solutions that will help hardworking Michigan taxpayers,” Hokestra said. “Brian Ellis will not just talk conservative, but he will vote conservative.”

BWAAAHAHAHAHAHAHAHA! Sure he will, Pete.

Demopublican

The last line has been a cornerstone of the Ellis campaign, which has continuously denounced several votes the libertarian-minded Amash has taken in Congress.

Ellis has racked up several big endorsements this cycle over Amash, R-Cascade Township, including Right to Life of Michigan [Big Yawn], Grand Rapids Chamber of Commerce [who doesn’t like a Tax Hike for prevailing wage, anyway], the Michigan Farm Bureau’s political action committee [$5,000 to Debbie Stabenow? Go figure] and others.

Michigan Rep. Mike Rogers [taking a break from palling around with the Moonslime Brotherhood] snubbed Amash, too, by appearing at a $1,000-per-plate breakfast fundraiser for Ellis in June.

Nothing like having the MI-GOP’s perennial loser Pete TARPstra flapping his gums about you or, a jagoff like Mike Rogers in your corner.

You Betcha! (16)Nuh Uh.(2)