What's amazing here is not what they tell you, but what they don't...
Well, the children in Detroit are at it again.
And is there any wonder why there is so much blow-back from Gov. Snyder’s latest excuse to waste Michigan Taxpayer money on Detroit?
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(6)Nuh Uh.
(0)Part II - The Eventual Cost of DPS Liabilities to Michigan Taxpayers and Detroit Schoolchildren
DPS has two types of formal debt: operating and capital. Operating debt is a conversion of present and past annual operating deficits into ‘long-term notes’ sold to the financial markets, as well as more immediate debts owed to the State of Michigan directly. DPS capital debt exists only in the form of bonds which were sold to financial markets to purchase and rehabilitate facilities. DPS’ formal bonds are identified by Series, which consists of the year issued and a letter suffix when different purpose bonds are issued in a single year. The financial markets apply a further identifier, CUSIP, which is a unique identifier of municipal bonds by series and their intended dates of redemption. All of the DPS debt sold to the financial markets has been enrolled in Public Act 92 of 2005, a program designed to reduce interest rates to local school districts in accordance with the 1963 Michigan Constitution’s Article IX, Section 16. Most DPS debt is effectively secured by a general obligation to pay, which requires Detroit taxpayers to increase taxes and reduce spending should financial difficulties repaying arise.
DPS pays off its capital debt in annual installments of both interest and principal, before it pays off (or adds to) its operating debt. Bond interest and principal payments are required by bond terms which – if ignored – would result in immediate default and bankruptcy. The exact contract terms of DPS debt sold to the financial markets are laid out in official statements which detail all the formal legal and financial features of the bonds. The official statement is essentially a contract between DPS and its bond purchasers.
DPS’ operating debt payments are somewhat more flexible than capital debt payments because only a portion of operating debt has been converted into formal bonds covered by statements; much of it is separately owed to the Michigan School Loan Revolving Fund. The SSLRF can best be thought of as a State sponsored credit card. School districts tap into it when they are short of cash, and pay off their balance when they are flush. Operating debt is only converted into formal bonds when Michigan school districts exceed their limits at the SSLRF. Those limits are not exact, and generally come into play when DPS goes through one of its periodic financial spasms.
(8)Nuh Uh.(0)Part I - No, The Richmond USD Case Did Not Challenge U.S. Bankruptcy Court Authority
Governor Snyder browbeat the Michigan Legislature to approve the $ 617 million bailout of Detroit Public Schools which he signed today by regaling them with a parade of horribles which would occur if the bailout was defeated and DPS was forced to file for bankruptcy. Daniel Howes regurgitated Governor Snyder’s compelling tales of impending doom delivered behind closed doors in a Detroit News article, but was any of it true?
Right at the top of Governor Snyder’s parade of horribles was the Federal bankruptcy filing of the Richmond [California] Unified School District on April 19, 1991 . Governor Snyder portrayed the outcome of this action as the U.S. Bankruptcy Court denying the petition and ordering the State of California to financially bail out the district. From Daniel Howes’ article:
There is scant precedence for school districts filing for bankruptcy, the Snyder administration found. In 1990, according to an administration letter to state Rep. Laura Cox, R-Livonia, the Richmond Unified School District in Northern California filed for bankruptcy because of $42.5 million in debt. The judge ruled the district could not be protected by the court in bankruptcy and ordered the state to provide the district with operating funds.
Nothing could be farther from the truth.
(8)Nuh Uh.(0)RTA Funding Could Buy All Their New Riders New Cars, And Pay For Their Fuel and Insurance To Boot!
The new Regional Transit Authority of Southeast Michigan is out today with their transportation master plan to soak taxpayers in Macomb, Oakland, Washtenaw, and Wayne Counties for another $ 3.3 billion in property taxes over a 20 year period.
RTA CEO Michael Ford released the regional mass transit plan RTA will submit to voters on November 8th under PA 387 of 2012. A 1.2 mill property tax increase and $ 1.7 billion in new Federal & State subsidies will provide four new bus rapid transit lines, 11 cross county connector lines, one regional rail line, and some extended/intensified local service.
Let’s have some fun by subjecting the new RTA regional mass transit plan to some real, pre Common Core, mathematics.
(16)Nuh Uh.(0)Once again, Democrat aristocracy tries to buy a Northern Michigan political seat.
It is clear that the first lady gent of Obama-for-America fundraiser Julianna Smoot is sure of his impending primary success.
The race between Lon Johnson-Smoot, and (a guy who actually lives in the district) Jerry Cannon might have been a bit more balanced, but for a December car accident that temporarily put into question the retired General’s ability to campaign. Any recent uptick in Cannon’s perceived chances are apparently not preventing Lon Johnson-Obama-Smoot from tying up the airwaves just before the general election in late October.
The guy who has a cabin-in-the-woods-for-residency has purchased several thousand in TV ads in Marquette already as reported to the FCC. Cash money already spent
The list below shows recent purchases made
(13)Nuh Uh.(0)Take a good look at the picture below.
He’s going to factor heavily in this post (and more importantly, what YOU can do to protect your pocketbook).
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(16)Nuh Uh.(0)Why would we expect anything else from the party of Clinton?
Democrats have been screaming about Republican leadership’s failure on the Flint water issue.
While we have no overreaching love for the governerd, who brought us expansion of Obamacare, lost our insurer of last resort, broke the law for his ‘roads’ funding boondoggle, and still hands out money like its not his own, it was not Rick Snyder who put lead in the pipes of Flint. He took credit for the failure of his bureaucracy to properly assess a fast developing public health issue, but he surely did not cause the problem.
Was it the bureaucracy itself? Yes. Decades of poor decision making by those who have by hook or crook made their life’s work to be the decimation of ‘Buick City.’ Poor planning and perhaps a little power mongering graft? From Reuters:
“Henderson’s lawsuit alleged that Mayor Karen Weaver ordered her assistant and a volunteer to redirect donors from a local fund set up to help families affected by the water crisis to her political action committee instead.
The lawsuit charged that the city employee was “specifically directed” to instruct people “step-by-step” to donate to the mayor’s “Karenabout Flint” fund through its website, rather than the Charity Safe Water/Safe Homes fund through the city’s website.
Sure thing.
(11)Nuh Uh.(0)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.
“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.
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(10)Nuh Uh.(0)When A Devious, All Too Clever Plan Goes Awry
Retired U.S. Bankruptcy Court Judge Steven W. Rhodes got just a bit too clever in his latest ploy to stampede the Michigan Legislature. He is trying to ram a $ 720 million bail out for the Detroit Public Schools through the Legislature, but wound up creating a labor relations firestorm. He even managed to grievously damage the prospects of the bail out in the Legislature. As always, it is the DPS students who are suffering the fallout.
Judge Rhodes, the DPS ‘transition manager’, sent out an email on Saturday telling all and sundry that DPS would have no money to pay teachers after June 30th. He urged Michigan lawmakers to “act thoughtfully, but with the urgency that this situation demands”. The Detroit News later reported:
Rhodes, who warned over the weekend the district would run out of money June 30 and stop making payroll for employees who get paid over the summer, urged employees, parents and others Monday to press lawmakers to pass the rescue plan.
This is a reprise of the successful panic tactics he and his buddy U.S. District Judge Gerald E. Rosen developed to force acceptance of the phony Detroit bankruptcy Plan of Adjustment. This effort, celebrated by Michigan’s nitwit media, left a smoking, $ 491 million crater in Detroit’s post bankruptcy finances. Mayor Duggan has been reduced to chiseling money from demolition contracts. Don’t forget that the $ 720 million bail out plan also turns total, absolute DPS control over to Mayor Duggan and his crack team of demolition contract negotiators. Out of the frying pan and into the fire we go.
This is how Michigan’s devious elites now get what they want, when they want, from an embarrassingly slow and cantankerous constitutional government process which they despise.
Whoopee Ti Yi Yo, Git Along Little Dogies
Some boys goes up the trail for pleasure,
But that’s where you get it most awfully wrong;
For you haven’t any idea the trouble they give us
While we go driving them all along.
(13)Nuh Uh.(0)Retired U.S. Bankruptcy Judge Steven W. Rhodes, now the Detroit Public Schools’ ‘Transition Manager’, just let another financial whopper out of the bag. Detroit Public Schools received about $30 million in U.S. Department of Education reimbursements for the pensions of grant-funded employees, but failed to forward those federal funds to the Michigan Public School Employees Retirement System. So DPS owes MPSERS $ 30 million dollars, give or take. They are ‘negotiating’.
DPS officials knew of this funds misappropriation in December 2015. Judge Rhodes knew “in March 2016”. Before or after the Michigan Legislature got suckered into passing HB 5296 and HB 5385, the DPS emergency bailout and purported financial review commission? HB 5296, the $ 48.7 million emergency DPS bailout, cleared the Michigan House on 17 March and the Michigan Senate on 24 March. Governor Snyder signed it as Public Act 54 on 12 April.
Did anyone in Lansing know that 60% of the PA 54 DPS bailout was headed straight to the MPSERS?
If so, why did they not share this little detail with the rest of the Legislature and the public prior to the passage of HB 5296?
(13)Nuh Uh.(0)
