Tag Archive for Detroit

I can’t wait until the rest comes due!

Gov. Snyder, Sen. Meekhof and Sperker Cotter demonstrating their best use for Michigan Taxpayer dollars.

With that conveniently (and consistently) “overlooked” $3.5-billion in debt, the Mi(a)GOP just handed the Michigan House to the democrats in the fall.

Screwed Image 1

Here’s a not-so-subtle hint.

 

More to follow…

 

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If we can convince you that smoking is good and get you to eat for breakfast what we want you to, then we can definitely get you to support this.

Take a good look at the picture below.

Edward Bernays Image

He’s going to factor heavily in this post (and more importantly, what YOU can do to protect your pocketbook).

{Continued below the fold}

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Save The Children!

Are Bailouts The Right Answer for DPS?

school-926213(Reposted from JasonGillman.Com)

The Michigan House just voted to give the Detroit Public Schools a $500 million bailout and the State Senate wants to give $800 million.

104th State Representative and incumbent Larry Inman explains it away as a necessary evil. He suggested on the Ron Jolly radio program Wednesday morning, that lawyers warned house leadership that if they didn’t do something, the courts would take over, and it could be far worse. He referenced the Michigan constitution, and its requirement on the legislature to provide funding for the schools.

My guess is that he did not ask the question of the attorneys advising the house “what might happen if every school district subjected the taxpayers to the same challenge?”

YES, the state is supposed to provide an education. The legislature is supposed to “maintain and support a system of elementary and secondary schools.. ” In fact, From the state constitution:

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Because giving them even more money has always solved Detroit’s problems.

Hold onto your wallets because the fun is set to begin again tomorrow.

Last week the Michigan House, in response to the temper tantrum thrown by the Detroit Federation of Teachers (which to be fair, was in response to the gross ineptitude of one Judge Steven Rhodes), passed yet another in a long line of “life preservers” to the failed Detroit Public School district.

Despite having been “locked out” by administration (seriously, that is what the DFT was using as a speaking point on every local talking head show last weekend), things went back to normal by Wednesday.

I’m still trying to wrap my head around the concept of how calling in sick en masse is somehow the equivalent of being “locked out” from your place of employment…but I digress.

Unlike the bailout proposed by the Michigan Senate, the House package is about $200-million lighter than the Senate’s, and is choked so full of poison-pill provisions that it is guaranteed to cause even more problems.

 

Bus roll over

“Not to worry! With a little elbow grease and some friendly verbal persuasion, we’ll have you upright and humming along the road in no time,” our relentlessly positive Gov Snyder allegedly remarked about the latest DPS bailout.

{More below the fold}

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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

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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.

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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.

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Are there any other “past practices” that we should be made aware of?

If there is any doubt whether or not the children are responsible enough to have been handed the keys to Detroit. This piece alone should put ANY doubt to rest.

I’ve commented numerous times in the past regarding how I (or any rational-thinking person for that matter), would not (/should not) buy into the Kool Aid that Gov. Snyder & Co. have been doling out is massive quantities pertaining to the Detroit Bankruptcy and subsequent Michigan State Government forced takeover (and more importantly Michigan Taxpayer paid) “turnaround” of Detroit.

To even suggest that DECADES of ingrained, multi-generational self-destructive personal behavior was going to instantaneously disappear simply because a spreadsheet was balanced (sort of) is just naiveté taken to the Nth degree.

Unemployment is still a major problem within Detroit.

So is the marked lack of a stable family structure.

And let’s not forget the woefully under-reported, long-anticipated collapse of the Detroit Public School System.

A new detail came out yesterday that should make everyone’s BP shoot up through the roof (and give you yet another reason to oppose giving the children running ANY level of Detroit government any more of our hard-earned money).

{More below}

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Gordie Howe Bridge On A Slow Roll to Oblivion

Canadian Economic Collapse and Extravagant Liberal Party Campaign Promises Doom Governor Snyder's Bridge

The estimated cost of constructing the NITC DRIC Gordie Howe Bridge between Detroit and Windsor has now more than tripled since the Canada agreed to fund the entire cost back in June 2012. Its total cost, including interest payments, is now over four times the 2012 estimate. The recent, sharp collapse in the value of the Loonie – the Canadian currency – is being blamed. But it appears that deliberate lying cost underestimation in 2012 and project creep over the last 30 months play a much bigger role in the eyepopping new cost estimates.USDCAD

Financial markets trade the U.S. Dollar and the Canadian Dollar back and forth as ‘USDCAD‘, which is the equal value ratio of Loonies per greenback. The higher USDCAD is, the weaker the Loonie. USDCAD is now quoted around 1.40 (1.4 Loonies per greenback). The Loonie was 37% stronger back in June 2012 when Governor Snyder and then Canadian Prime Minister Harper worked out their agreement; USDCAD was then about 1.02.

Direct construction costs are now estimated to be C$ 2 billion ($ 1.43 billion USD) higher than the C$ 973 million ($ 950 million USD) estimate touted back in 2012. A 37% increase due to currency adjustments would be only $ 360 million (USD), so we know the 2012 deliberate lie underestimation was in the vicinity of $ 1.64 billion (USD). Additionally, the collapse of the Loonie now requires the establishment of a C$ 1.5 billion ($ 1.07 billion USD) reserve to offset the expected rise in Canadian dollar denominated bond interest rates. The Canadian government bond yield curve has doubled at its short end since the middle of September 2015 in response to the collapse of the Loonie. The Gordie Howe Bridge will be financed at those higher Canadian bond interest rates. The total Canadian government cost estimate is now C$ 4.8 billion ($ 3.43 billion USD).Snyder Harper Image

Harper’s Conservative government was defeated in October of last year after NDP voters abandoned their own party for the elysian promises of Justin Trudeau and his Liberal Party. Virtually the same promises our Dear Leader made in 2008 – ‘Hope and Change’ recycled for a northern audience. Harsh reality is already wrecking the promises Trudeau made to win the October election, so will the Canadian government continue to throw money at an unneeded bridge?

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