Rent Seeking

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

Bankruptcy Stalks the Guardian Building

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Dead Man Walking JPEGThe 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, Cronyism, Democrats, Detroit, Fees, Humor in Michigan, Michigan, Michigan Politics, Opinion, Part Time Legislature, Philosophy, Proposal 15-1, Rent Seeking, Republicans, Taxes

Michigan Senate Republicans invoke “leadership” strategy gleaned from watching South Park.

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Just when you thought that things couldn’t get any stranger?

I bet you’re wondering which strategy that is?

Well, wait no longer (Here’s a hint: We’re at Phase 1)

{Click below the fold for details.}

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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

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

GLWA Detroit Seal ImageFriday, 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:Michigan Constitution of 1963 Article VII Section 30
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:Michigan Constitution of 1963 Article VII Section 28
Taken together with the 1963 Michigan Constitution’s Article III, Section 5:Michigan Constitution of 1963 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?

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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

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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Conservative News, Cronyism, Democrats, Detroit, Fees, Michigan, Michigan Politics, Opinion, Philosophy, Rent Seeking, Taxes

We’ll show you!

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You’d better not mess with Detroit! Or, you’ll get what’s coming to you!

The latest shakedown of Taxpayers in Southeastern Michigan took an interesting turn this morning.

Not because of its inaccessible meeting location at Waterworks Park in Detroit.

But, because of something that wasn’t expected during the meeting.

{Oh, you’re gonna love this…}

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Conservative News, Cronyism, Elections, Michigan, Michigan Politics, Opinion, Rent Seeking, Republicans

Well THAT Was Disappointing ..

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What at first appeared to be a reach out to get input for a post-SCOTUS ruling direction was just a scam.

Not at all surprising however.

Given that it was from team Benishek. I though perhaps he was noticing how folks have lost all respect for him, and as contrition, was reaching out to see what would make folks a little more confident in his future performance.  Gosh, maybe it was in response to my put up or shut up articles!

The email arrived with this heartfelt message:

” Jason,

With more than three decades in the medical field, I know how important it is for our healthcare system to empower patients and their doctors, not federal bureaucrats in Washington.

Too often, Washington politicians try to pass laws without talking to the people who have to live with the consequences. Any doctor will tell you that listening to your patients is one of the most important parts of medicine. I believe this is true in politics as well.

That’s why I want to hear from you.

Jason, please take my survey to let me know what you think of ObamaCare, and how we can build a better healthcare system.

Our current system isn’t working, and I know we can do better. With your support, we can fight for a bottom up healthcare system that empowers people not politicians.

Thank you for sharing your thoughts,

Dr. Dan”

So I clicked the link.   I diligently filled out the form answering the ready-made questions, and then I offered offered some “other thoughts” that were being solicited at the bottom.  I typed in:

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