Fees

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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Fast and Loose in the Michigan Senate

Switch Subsidy Bill Passage Was A Senate Rules Violation

David Knezek ImageIn their slobbering rush to deliver tax breaks for one very specific data center last Thursday, the Michigan Senate violated its own rules regarding the consideration of appropriations bills. The Knezek amendment to SB 616, S-1:

Enacting section 1. The legislature shall annually appropriate sufficient funds from the state general fund to the state school aid fund created in section 11 of article IX of the state constitution of 1963 to fully compensate for any loss of revenue to the state school aid fund resulting from the enactment of this amendatory act.

converted SB 616 into an appropriations bill according to the definition in Michigan’s 1963 Constitution, in its Article IV, Section 31.

Michigan Senate Rule 3.602 requires:

“Any bill requiring an appropriation to carry out its intended purpose shall be considered an appropriation bill (See Constitution Article IV, Section 31). Appropriations bills, when reported back to the Senate favorably by a committee other than the Committee on Appropriations, shall, together with amendments proposed by that committee, be referred to the Committee on Appropriations for consideration.

Michael Kowall Image 2Senator Kowall moved a suspension of the Senate Rules after the noon recess on Thursday to bring nine bills on to Third Reading, including SB 616. From Senate Journal 106, page 1910: “be placed on their immediate passage at the head of the Third Reading of the Bills calendar.” was his motion. Senate Journal 106 indicates that his request was passed by a majority. This allowed final action and passage on SB 616 in the Senate that day.

Reading the record, it would appear that Senator Kowall was suspending Rule 3.207 to consider SB 616 and the eight other bills which had been placed on to ‘General Orders’ that morning for final passage under ‘Third Reading’, out of normal order. Senate Rule 3.207 requires a one day delay between the ‘Second Reading’ (‘General Orders’), and the ‘Third Reading’ (‘Final Action’). Suspending this prescribed one day delay is a common practice when time is of the essence.

Senator Kowall had already moved that morning, before recess, to place SB 616 and the same eight other bills then under ‘Committee Reports’ (‘First Reading’) under ‘General Orders’ (‘Second Reading’), so they could be on that day’s calendar. Also out of normal order, but again a common practice when time is of the essence.

But did either of Senator Kowall’s two suspension motions suspend Michigan Senate Rule 3.602?

Is Michigan Senate Rule 3.602 a fundamental rule as defined by Mason’s Manual of Legislative Procedure? Mason’s is the underlying body of rules adopted by the Michigan Senate when their own rules are mute on an issue.  Fundamental rules cannot be suspended according to Mason’s and all the other accepted bodies of parliamentary rules.

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Another Deceitful Michigan Tax Scam Exposed

Desperate Local Politicians Seek to Preserve Surreptitious Business Activities Tax

Tax Image 1Less noticed during this year’s roads tax furore, a roiling commercial property tax dispute has exposed a widespread, sub rosa business activities tax hidden in commercial real property taxes. A hidden tax you have been paying with every purchase at big box chain retailers who occupy stores they themselves own. Big box retailers have been exposing and successfully challenging this corrupt assessing practice through the Michigan Tax Tribunal and local units of government are howling over the loss of their ill gotten revenue.  Michael B. Shapiro of Honigman, Miller has been leading the charge against these bloated assessments.

Local units of government are demanding the Michigan Legislature overturn long standing real estate valuation principles and the Michigan court rulings which hold that assessed true cash value (i.e. fair market value) for tax purposes be based upon what a property would be sold for at arm’s length. They want true cash value to effectively incorporate the retail success of current owner-occupants. This artificially jacks up the property’s true cash value, its taxes, and the prices you pay at the store. Remember that businesses don’t pay taxes, customers of those businesses – in this case you – do.

Michigan’s nitwit media have deceitfully relabeled traditional true cash value assessment the ‘Dark Stores Loophole’. Local government organizations are screaming about lost revenues.  Even MoveOn.org is right in there with a petition to support their favorite spenders.  This is a devious effort to stampede our state’s legislators into codifying creative assessment methods solely intended to extract surreptitious revenues from shoppers. A follow on to the more blatant ‘Amazon Tax’ campaign of 2014. The State of Michigan got into your pocket last year, now it is your local government’s turn.

The term ‘Dark Stores Loophole’ was created to suggest that vacant big box stores have lower, fire sale values when compared to occupied stores. True enough, but we are discussing assessments used to determine real estate, i.e. property, taxes. Not taxes on business activity. The two creative assessment methods used most often to loot shoppers are ‘construction cost‘ and ‘imputed lease‘ calculations. Each might be valid under some very limited circumstances, but both are entirely invalid when assessing big box retailers.

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How Refreshing This Would be to Hear in Michigan

Sorry, we’ve got our perpetually bowing to Obama, nasally Progressive quisling, and his obedient toad, so, forget about that, Boobus Michiganderus.

Yessirree, we’re about to get the *best* energy policy that money can buy in Lansing, and get it good and hard.

H/t Sundance

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Hey, Gov. Snyder? Sen. Meekhof? You do not need to abandon your republican principles any longer.

Rich Studley: "Lawmakers who think the condition of Michigan's roads can be improved with "fairy dust or wishful thinking or Monopoly money," rather than through raising new revenues, should be held accountable for taking that position,

Richard StudleyI couldn’t agree with you more, Richard.

Michigan Motorists need not worry about Michigan Roads. Rich Studley and the Michigan Chamber of Commerce have got this one covered.

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They’re Looking at Plundering Your Wallets… Again

Here comes your fuel tax and fee hikes.

Both sides, along with Gov. Rick Snyder, generally agree on the need for $1.2 billion a year in additional road funding, but they’ll need 54 votes to get it done. Cotter’s willingness to at least consider $800 million in new revenue likely increases the odds of a deal.

SnyderCalley“For me, it’s not just about the proportion — how much is new revenue and how much is general fund — but all the other details that go into making up a package,” Cotter, R-Mt. Pleasant, said Thursday. “I want to see what are the forms of new revenue, where’s it coming from and to what degree, but then also what other pieces of the package exist.”

The governor and legislative leaders from both sides of the aisle have been meeting regularly – twice in each of the past two weeks, according to Snyder — in hopes of reaching an agreement they all can live with.

“The lieutenant governor and I, I think it’s fair to say we both think there’s been a lot of progress in these meetings,” Snyder said last week. “Issues are coming up [indeed], we’re having a healthy discussion and people are trying to be good problem solvers. People are trying to come to a good solution.”

Cotter said he thinks they’re “very close” to a deal, but he also acknowledged he’s said that before.

“I’ve been saying for some time now that I’d like to get this to the floor in October, and I think we’re on a good pace to do that,” he said.

More unaccountable government and thievery HERE

Where’s the “future budget pressures” mentioned within the article?

That’s easy – Snydercaid Expansion. Remember that crap? Yep, those chickens are already coming home to roost.

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