10x25MM

Metallurgical engineer, troublemaker....

All the Other Stuff, Cronyism, Democrats, Flint Water Fiasco, Michigan, Michigan Politics, Opinion, Part Time Legislature, Philosophy, Republicans

Who’s Missing?

by 10x25MM • September 4, 2015 • 8 Comments

Governor Snyder's New Pipeline Safety Advisory Board: Long on Bureaucrats & Special Interests, Short on Technical Talent

Ruptured Section of Enbridge Pipeline 6B Recovered from Calhoun County, MI. NTSB Image

Governor Snyder filed Executive Order 2015-12 with the Secretary of State yesterday to create a Michigan Pipeline Safety Advisory Board under the aegis of the Michigan Department of Environmental Quality. A response to the disastrous 2010 Enbridge Pipeline 6B rupture in Calhoun County and the agitation against Enbridge Pipeline 5, which transects the Straits of Mackinac.

Meanwhile, Attorney General Schuette completed a binding legal agreement with Enbridge to prevent Enbridge Pipeline 5 from being used to transport ‘heavy crude oil’ under the Straits of Mackinac. This agreement formally implements the first recommendation of the Michigan DEQ Petroleum Pipeline Task Force Report released in July to ban heavy crude oil in Line 5. Sounds good, but Enbridge Pipeline 5 does not now have the pumping horsepower for heavy crude transmission, and the weight of the crude has very little to do with pipeline integrity. Corrosive constituents in the crude, biofouling, and a host of other technical issues are far more important determinants of pipeline integrity. This agreement has great optics, but little consequence.

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All the Other Stuff, Cronyism, Democrats, Elections, Liberty, Michigan, Michigan Politics, Opinion, Part Time Legislature, Republicans

Misrepresentation

by 10x25MM • August 4, 2015 • 2 Comments

Is University Indoctrination Really a Qualification Required for Political Office?

Sunday, the Detroit News ran a charming agitprop piece bemoaning the fact that 20% of Michigan’s legislators “lack a formal higher education degree, ….. raising the question of whether a college degree is a prerequisite for leadership and political office”. The snide implication of this stooge for the university left is that 20% of Michigan’s legislators are ignorami, but her devious political subtext is that 20% of Michigan’s legislators have missed the political indoctrination necessary to be good left wing robots.

May I remind you of MSU Professor William Penn’s 2013 creative writing class, as recounted by the great Walter Williams in Townhall two years ago:

MSU Professor William Penn

William Penn, Michigan State University professor of creative writing, greeted his first day of class with an anti-Republican rant. Campus Reform, a project of the Arlington, Va.-based Leadership Institute, has a video featuring the professor telling his students that Republicans want to prevent “black people” from voting. He added that “this country still is full of closet racists” and described Republicans as “a bunch of dead white people — or dying white people”. To a student who had apparently displayed displeasure with those comments, Professor Penn barked, “You can frown if you want.” He gesticulated toward the student and added, “You look like you’re frowning. Are you frowning?” When the professor’s conduct was brought to the attention of campus authorities, MSU spokesman Kent Cassella said, “At MSU it is important the classroom environment is conducive to a free exchange of ideas and is respectful of the opinions of others.”

That mealy-mouthed response is typical of university administrators. Professor Penn was using his classroom to proselytize students. That is academic dishonesty and warrants serious disciplinary or dismissal proceedings. But that’s not likely. Professor Penn’s vision is probably shared by his colleagues, seeing as he was the recipient of MSU’s Distinguished Faculty Award in 2003.

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Cronyism, Democrats, Detroit, Michigan, Michigan Politics, Rent Seeking, Republicans, Taxes

Bankruptcy Stalks the Guardian Building

by 10x25MM • July 21, 2015 • 3 Comments

The ball is now in the Governor’s court, so to speak. The report is not public yet, but the press release is out. It only took the State independent review team 18 calendar days to figure out what everyone knows: Wayne County is in a ‘Financial Emergency’. Here is the money shot from the Michigan Department of Treasury press release:

The team’s extensive report indicates that numerous conditions led to the determination that a financial emergency exists in the county. Those conditions include the following:

The county’s last four annual financial audits revealed notable variances between General Fund revenues and expenditures as initially budgeted, as amended, and as actually realized. In addition, County officials underestimated actual expenditures in three of the fiscal years by amounts ranging from $16.7 million to $23.7 million.

County officials engaged in unbudgeted expenditures in violation of Public Act 2 of 1968, the Uniform Budgeting and Accounting Act.

Although there was agreement among county officials that existing detention facilities are inadequate, there is no consensus about whether to complete construction on a new jail or to renovate existing facilities.

According to the county executive’s recovery plan, unfunded healthcare-related liabilities were estimated to be $1.3 billion as of the last actuarial valuation with funding set aside for this purpose of less than one percent of liabilities. Healthcare-related liabilities represent 40 percent of the county’s long-term financial obligations.

The Governor now has 10 days to take one of five actions: do nothing, conduct another ‘neutral’ evaluation, arrange a consent agreement, impose an emergency manager, or file the County for Chapter 9 bankruptcy in U.S. Bankruptcy Court.

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Conservative News, Democrats, Firearms, Michigan, Michigan Politics, Part Time Legislature, Republicans

Ready For A Crime Wave?

by 10x25MM • June 18, 2015 • 9 Comments

Governor Snyder's 'Smart Justice' Improves The Risk/Reward Payoff For Armed Criminals

Michigan House Bills 4419/4420, Proposed Substitute H-3, gut Michigan’s 25 year old mandatory minimum sentences for crimes committed with firearms. Introduced by Republican Representative Kurt Heise (R-20th) of Plymouth and co-authored by 28 bleeding heart Republicans (4) and Democrats (24), these bills:

1. Convert Michigan’s long standing mandatory 2/5/10 year minimum sentences for criminals using firearms into maximum sentences

2. Allow ‘use of firearms’ sentences to be served concurrently with the underlying crime sentences for the first time

3. Allow prisoners serving ‘use of firearms’ sentences to be paroled prior to completing even these sentences

Now the proponents of ‘Smart Justice’ are telling the public that their effort will:

– reduce the number of ‘non violent prisoners’ held in Michigan prisons

– reduce the price Michigan pays for incarceration

As you might imagine, this is quite attractive to Michigan politicians who just got slapped down on Proposal 1. The Michigan Department of Corrections consumes $ 2 billion in General Fund revenues every year. Roughly 20% of the total General Fund.

Governor Snyder kicked off this issue back in early March with his Special Message to the Legislature on Public Safety. The primary public advocate driving his ‘Smart Justice’ sentencing reforms is one Barbara Levine, the Assistant Director of Research and Policy at the Citizens Alliance on Prisons and Public Policy and one of Governor Snyder’s appointees on Michigan’s new Criminal Justice Policy Commission. She just released a massive study titled “10,000 fewer Michigan prisoners: Strategies to reach the goal”. This could produce up to a 23% drop in prison spending, something on the order of $ 450 million a year. A lot of new Lansing office buildings with views and more idle train cars in Owosso. A Pavlovian metronome irresistibly beckoning our state politicians.

But how much would it cost Michigan residents in crime taxes?

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All the Other Stuff, Conservative News, Cronyism, Democrats, Detroit, Fees, Flint Water Fiasco, Michigan, Michigan Politics, Part Time Legislature, Rent Seeking, Republicans, Taxes

Unconstitutional: Great Lakes Water Authority Lease Violates Michigan Constitution

by 10x25MM • June 15, 2015 • 8 Comments

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

Friday, 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:
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:
Taken together with the 1963 Michigan Constitution’s 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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All the Other Stuff, Cronyism, Democrats, Fees, Michigan, Michigan Politics, Proposal 15-1, Rent Seeking, Republicans, Taxes

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

by 10x25MM • June 12, 2015 • 1 Comment

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

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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All the Other Stuff, Conservative News, Cronyism, Democrats, Detroit, Fees, Fees, Flint Water Fiasco, Michigan, Michigan Politics, Rent Seeking, Republicans, Taxes

Southeastern Michigan Water Fight

by 10x25MM • June 10, 2015 • 3 Comments

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

The 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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Conservative News, Democrats, Detroit, Elections, Michigan, Michigan Politics, Opinion, Philosophy, Republicans, Taxes

A Dead Man Walking: Wayne County

by 10x25MM • June 5, 2015 • 13 Comments

Your Least Loss is Your First Loss

Wayne County Executive Warren Evans told the assembled self very important persons at the Mackinac Policy Conference last Friday that he now believes that his county government can avoid bankruptcy. “He is now comfortable with the options” was the report. Little did he know that, on the very same day, Wayne County Circuit Court Judge Lita Popke gave the County 48 hours to pay its retirees $ 49 million dollars to restore their 2010 ’13th check’ retirement benefit. Wayne County told the court flat out that it doesn’t have the money.

The Wayne County Commission voted yesterday to tap most of the last remaining funds in the County’s much abused Delinquent Tax Revolving Fund, however Warren Evan’s subsequent veto threat all but assures that this summer’s county property taxes will increase 1.23 mils to pay this judgement. This property tax increase will not even require a vote of affirmation under the Headlee Amendments to the Michigan Constitution, because it is pursuant to a court order.

’13th checks’ are a devious method of looting pension funds which began in the 1980’s, in Michigan. When some Michigan public pension funds earned more than their targeted rate of return in a year, say 8%, the ‘surplus’ earnings got doled out to retirees in the form of a 13th check. These 13th checks could amount to far more than the pension fund’s actually surplus. Retirees never had to give back their prior 13th check payments when the pension funds dialed up a big loss, so the 13th check was an opportunistic form of looting – not an equitable form of risk & gain sharing. This practice has occurred in state pension plans, county pension plans, and city pension plans across Michigan. The particular problem in Wayne County is that Robert Ficano stripped his pension funds of the 13th check payment funds in 2010 to make his books look better. Worst of all, Wayne County’s pension funds are only about 44% funded and their OPEB’s (retiree medical care, etc.) are essentially unfunded.

Wayne County’s accounting is nebulous, to be charitable. A read of their 2014 CAFR (22 MB document, it took a lot of lipstick to make this dead pig look good!) shows that the County is carrying forward an unassigned deficit of $ 82.8 million, and only got it down to this awful level by diverting $ 91.7 million from their dwindling Delinquent Tax Revolving Fund to their General Fund in 2014. Then, depending upon whom in Wayne County government you are talking to, Wayne County is still losing another $ 4 – $ 5 million each month.

This amounts to something over $ 50 million per year.

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Cronyism, Democrats, Detroit, Elections, Michigan, Michigan Politics, Part Time Legislature, Philosophy, Proposal 15-1, Rent Seeking, Republicans, Taxes

Mackinac Policy Conference At The Grand Hotel: Protect Your Wallet!

by 10x25MM • May 26, 2015 • 1 Comment

Detroit Chamber's Mackinac Policy Conference 2015 Starts Today - You Won't Like The Outcome

Is that a donkey in front of the Grand Hotel?

Later today Michigan’s Self Very Important Persons start checking in at the Detroit Regional Chamber’s 2015 Mackinac Policy Conference held on Mackinac Island. At $ 2,150 per person for Chamber members and $ 2,925 for Chamber wannabees, average Michiganders will not be much in evidence. The attendees list reads like the last itemized contribution report for SafeRoadsYes!, along with the clueless Michigan politicians who endorsed Proposal 1.

The Detroit Regional Chamber’s “Vision and Pillars” for the 2015 Conference is innocuous enough, but the Conference’s agenda is far less oblique. A host of left luminaries and crony capitalists orbiting Michigan government will be plotting higher taxes, bigger spending, and more vexatious regulations. When they are not drinking.

The official agenda is all about Detroit, Michigan schools, alternative business subsidies, and the roads, but there is also the transformation of Detroit Water & Sewerage Department into the Great Lakes Water Authority lurking in the background. Roads are the most interesting part of the official 2015 Conference agenda, given the near universal support for Proposal 1 amongst the attendees. Despite touting ‘vision’, expect the Conference to endorse new taxes over improved efficiencies and better engineering.

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Conservative News, Cronyism, Democrats, Detroit, Michigan, Michigan Politics, Philosophy, Proposal 15-1, Rent Seeking, Republicans, Taxes

Did Proposal 1 Decamp to Washington?

by 10x25MM • May 14, 2015 • 2 Comments

Spectacular Death in Michigan No Bar to Success in Washington

While Michiganders were being entertained and infuriated by the lies of Proposal 1 proponents, few of us noticed that the very same roads funding strife is reaching a crescendo in Washington. The Federal Highway Trust Fund spends about $ 50 billion dollars on ‘transportation’ across the U.S.A. each year. Michigan received $ 1.39 billion from the HTF in Fiscal Year 2014 for new construction of roads and bridges, along with mass transit activities. As a point of reference, Michigan spent an additional $ 2 billion of funds raised within the state for the same ‘transportation’ purposes. The Federal HTF paid for 40.9% of Michigan ‘transportation’ spending in FY 2014.

Funded in the past by an $ 0.184 per gallon Federal gasoline tax ($ 0.244 per gallon on diesel fuel), the Highway Trust Fund’s traditional fuel tax revenues have fallen to about $ 34 billion. The Federal government has been supplementing the Highway Trust Fund from general deficit spending revenues since 2008. In Fiscal Year 2014, the Federal government supplemented the Highway Trust Fund with $ 11 billion in general revenues.

How did this happen?

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