Government Incompetence

Conservative News, Democrats, Detroit, Elections, Government Incompetence, Michigan, Michigan Politics, Republicans, Taxes

When $ 175,000 A Year Just Isn’t Enough

by  •  • 2 Comments

You can fool some of the people all of the time, and all of the people some of the time, but you can not fool all of the people all of the time....President Abraham Lincoln

Adamo DemolitionDetroit’s Deputy Director of Construction and Project Management, James Wright, suddenly resigned today. Wright had been the Detroit Medical Center’s Corporate Vice President of Facility Engineering and Construction when Mayor Duggan hired him under a contract to be the $ 250,000 a year Deputy Director of the Detroit Land Bank Authority two and a half years ago. He was then transferred to the city’s payroll in March of this year at a $ 175,000 a year salary. Mr. Wright’s resignation does not include a severance and was effective immediately. Certain evidence of a firing at this level of government, not a resignation.  You can bet that Wright just got his Federal target letter. from U.S. Attorney Barbara McQuade.

The FBI and the Special Inspector General of the Troubled Asset Relief Program (SIGTARP) have been investigating Detroit’s demolition program for about a year now. Enough time to start issuing indictments. SIGTARP has jurisdiction over the Hardest Hit Fund which provided the $250 million Detroit has spent on home demolitions (and lavished on contractors). Detroit Mayor Duggan has pledged complete cooperation with the investigation.  Wright Right…..

Barry Ellentuck ImageWright’s resignation comes on the heels of Attorney General Bill Schuette’s failed prosecution of whistleblower Barry Ellentuck, the ADR Consultants, LLC President who went to the FBI with solid evidence of the corruption in the Detroit home demolition program – the very day before AG Schuette indicted him. Mr. Ellentuck was set up by a lying, thieving subordinate and his prosecution had all the hallmarks of retaliation for squealing to the Feds. Home demolition contract costs suddenly rose from about $ 10,000 per house to $ 16,000 per house under Mayor Duggan, just after Mr. Wright took control of the program.

The city originally signed Wright to a two-year contract that paid $250,000 a year. He was transferred to the city’s payroll at $175,000 a year when his original two year employment contract expired in March.  Evidently, $ 175,000 a year is just not enough for Mayor Duggan’s exalted talent.  As a point of reference, Governor Snyder makes $ 159,300 per year as Governor of Michigan. Governor Snyder clearly holds the wrong office to make money in this state.

Wright awarded corrupt ‘unit price’ demolition contracts to three connected demolition companies, Adamo, Homrich and MCM Management. You might recognize them as very profitable MDoT contractors, but that was the Proposal 1 story of last year. Wright disclosed contract prices before the bids were opened to their competitors and allowed all three companies special, reduced bonding requirements unavailable to other bidders.

READ MORE ►

You Betcha! (16)Nuh Uh.(0)

Conservative News, Cronyism, Detroit, Elections, Government Incompetence, Michigan, Michigan Politics, Part Time Legislature, Rent Seeking, Republicans, Taxes

Quid Pro Quo: How The DPS Bail Out Passed

by  •  • 9 Comments

Pavlovian Conditioning In Michigan Politics

Money Transfer ImageMichigan’s campaign finance laws were designed to expose quid pro quo donations to legislators and politicians by the individuals and groups having special interests in government actions. A particular goal of campaign finance laws was to prevent politicians from benefiting personally from their votes and actions. In the American Civics version of representative government, politicians are expected to represent their voters exclusively. Selling their votes and actions to the highest bidder creates an unresponsive, alien government in short order. Think Venezuela, Illinois, or Detroit. Where Michigan is now heading.

Political campaigns are expensive today. Consultants and media outlets are the particular beneficiaries of lavish campaign spending and have, in turn, convinced candidates that money is the sine qua non of political success. Today, you are not considered a serious candidate for the lowest rung in the Michigan political firmament – State Representative – unless you have a $ 100,000 campaign war chest.

American politicians and their special interest backers are developing a technique which directs quid pro quo donations right into politicians’ pockets.  This technique is fast becoming a staple of Michigan politics and Michigan’s nitwit media have ignored this ingannation of representative government.

Michigan politicians are now morphing into vending machines that cater to the highest bidders in Lansing and Washington.  This explains the passage of the PA 192 – 197 Detroit Public Schools bail out over the objections of many outraged Michigan voters.

READ MORE ►

You Betcha! (18)Nuh Uh.(0)

Conservative News, Cronyism, Democrats, Detroit, Elections, Government Incompetence, Michigan, Michigan Politics, Part Time Legislature, Republicans, Taxes

August 2nd Matters

by  •  • 3 Comments

The DPS Bail Out Can Be Spiked By Defeating Just One State House RINO

Michigan Capitol Building Image 1The six bills (PA 192 – 197 of 2016) of the Detroit Public School bail out package passed in the Michigan House of Representatives by margins of 55 – 53 to 60 – 48. The same six bills passed in the Michigan Senate by margins of 19 – 18 to 21 – 16. Close votes; over 50% + 1 but nowhere near two-thirds. And these close votes were only obtained after an entirely false narrative of doom and gloom was presented to the Legislature. This is becoming a major issue in the August 2nd primaries which Michigan’s nitwit media are conveniently ignoring.

Attorney Thomas H. Bleakley (P23892) filed a lawsuit (Helen Moore et al v. Rick Snyder, 16-000153-MM) in the Michigan Court of Claims on the 5th of July which alleges that the entire DPS bail out package’s passage was unconstitutional; the claim being it was in fact a collection of local acts according to the Michigan Constitution of 1963.  Local acts require two-thirds legislative vote margins and voter approvals to become law.  The six bills of the DPS bail out package were all passed, in both houses of the Michigan Legislature, under the more liberal 50% + 1 voting rule allowed only for general acts.

The Michigan Constitution of 1963, Article IV, Section 29 states “No local or special act shall take effect until approved two-thirds of the members elected to and serving in each house and by a majority of the electors voting thereon in the district affected….”. Article IV, Section 30 further states that “….two-thirds of the members elected to and serving in each house of the legislature shall be required for the appropriation of public money or property for local or private purposes.”.

READ MORE ►

You Betcha! (18)Nuh Uh.(0)

Democrats, Elections, Government Incompetence, Michigan, Michigan Politics, Philosophy, Republicans

Judge: ‘blacks are incapable and stupid’

by  •  • 3 Comments

A federal judge has once again unconstitutionally interfered with a state’s right.

This time it was with the operation of voting, which is NOT a constitutionally assigned federal responsibility. Barack Obama appointee, and U.S. District Court Judge Gershwin Drain’s decision to issue four preliminary injunctions against state election officials has also demonstrated his trust in the ability of African Americans to self determine. As reported by the Detroit News:

In a passionate 37-page opinion announced Thursday, Drain said the new law will reduce African-Americans’ opportunity to participate in the state’s political process and puts a disproportionate burden on African-Americans’ right to vote.

Of course.

In liberal Judge speak: “It is too much to expect an African American to actually go down the ballot and choose candidates, as they are wholly under qualified.”

Are we interpreting this decision incorrectly?

You Betcha! (14)Nuh Uh.(1)

Cronyism, Democrats, Detroit, Elections, Government Incompetence, Michigan, Part Time Legislature, Rent Seeking, Republicans, Taxes

The DPS Bailout – An Alternative History Under Bankruptcy

by  •  • 9 Comments

A Bankruptcy Postponed Is Not A Bankruptcy Avoided

US Bankruptcy Court ImageThe $ 617 million PA 192 – 197 bail out package signed by Governor Snyder on 21 June (plus the $ 48.7 million emergency down payment earlier this year) will not fix the Detroit Public Schools. The culture of corruption and incompetence long fostered within DPS suggests that the new DPS – same as the old DPS, except for some liabilities – will fail miserably a few years hence in an avalanche of new liabilities. Michigan will then be left to sort out two separate DPS entities with unsustainable liabilities. This could easily occur even before Governor Snyder leaves office in 2019. Karma. Déjà vu all over again.

Governor Snyder secured the Michigan Legislature’s approval of the $ 617 million bailout by regaling them with an entirely false narrative of the aborted 1991 Richmond, CA Unified School District bankruptcy, then implying that the entire $ 3.5 billion in DPS liabilities would fall upon the taxpayers of Michigan. The Michigan Legislature’s Republicans (and our nitwit media) bought Governor Snyder’s tale hook, line, and sinker – then delivered a $ 617 million gift to DPS for its past ill behavior. The Michigan Legislature’s Democrats had the chutzpah to hold out for even more taxpayer paid goodies.

There was another, better option: bankruptcy.

READ MORE ►

You Betcha! (11)Nuh Uh.(0)

Conservative News, Cronyism, Democrats, Detroit, Elections, Government Incompetence, Michigan, Michigan Politics, Part Time Legislature

A House Divided – And Its Not Republicans!

by  •  • 3 Comments

Replacement of Representative Plawecki on the Ballot Reveals Democratic Party Discord, Preparation for a Lame Duck Session?

Julie PlaweckiDuring a week of dramatic racial conflict across the U.S.A, few noticed a more subdued racial conflict which surfaced right here in Michigan. First term Michigan State Representative Julie Plawecki died on June 25th during a hike on Misery Ridge at Smith Rock, Oregon. Representative Plawecki was running unopposed for reelection in the Democratic primary on August 2nd, in Michigan’s 11th State House District. Representative Plawecki’s death occurred after the April 19th Michigan primary election filing deadline, so it is up to the local party to select a replacement Democrat to appear on the November 8th ballot in accordance with PA 116 of 1954.

The ‘local party’ in this particular instance is the Michigan 13th Congressional District Democratic Party (SoS BoE 516418). Representative Conyers represents the 13th Congressional District, even though he hasn’t lived in it since the 2012 redistricting. Even so, Representative Conyers does maintain control over the 13th Congressional District Democratic Party apparatus through his agent Jonathan C. Kinloch. Jonathon C. Kinloch 2Mr. Kinloch, a Detroiter who also resides outside the 11th State House District, is perhaps best known as an Emergency Manager appointed member of the esteemed Detroit Board of Education.

Half of the 11th Michigan House District’s population is in Garden City and Inkster, with the balance in attached pieces of Westland, Dearborn Heights and Livonia. Garden City and Inkster are polar opposites ethnically, but both vote heavily Democratic. The Westland and Dearborn Heights segments of the 11th are somewhere in between Garden City and Inkster, while the small segment of Livonia trends Republican. Hidden in the Census data for this district are substantial South Asian and Arab ethnic communities, but the district’s African-American population fraction is pretty well identified by the Census at about 35%.

READ MORE ►

You Betcha! (8)Nuh Uh.(0)

Conservative News, Cronyism, Democrats, Detroit, Government Incompetence, Michigan, Michigan Politics, Opinion, Rent Seeking, Republicans

Exactly whose agenda is Gov. Snyder promoting?

by  •  • 1 Comment

"While shutting down the schools would be horrible. It is a better option than the alternative."

“This marks a new day for Detroit families, with DPS free from debt and strong accountability measures for all schools in the city that promises a brighter future for all of Detroit’s children.” – Michigan Governor Rick Snyder after signing the DPS bailout package last month.

If only that were really true.

There’s a story making the rounds here locally, that to put it mildly, I am more than a little surprised hasn’t been picked up by other media outlets around Michigan.

It seems that Emergency Manager Transition Manager Stephen Rhodes, Michigan Treasurer Nick Khouri, Gov. Snyder and a few select others within Michigan Government have felt that it is more important to bury some rather disturbing facts relating to Detroit Public Schools, rather than to make them public (Read: Better make sure that Michigan Taxpayers don’t EVER get wind of this!).

 

What was John Burroughs Intermediate School.

Nope, not the crumbling infrastructure of DPS.

And what is this little nugget you may ask?

{Continued below}

H/T to the good people at Channel 7 in Detroit for breaking this story.

READ MORE ►

You Betcha! (8)Nuh Uh.(0)

All the Other Stuff, Cronyism, Democrats, Government Incompetence, Philosophy

Welcome To The Third World.

by  •  • 7 Comments

bananas-504478_1920I have been amused in the past when liberal Democrat demonstrations spark a chant of “This is what Democracy looks like..”

No.  its not.

They have achieved the goals of their epic struggle against tradition, rule of law, and flat out decency and morals. It is NOT what a Democracy looks like.   This is what a Banana Republic looks like:

FBI Director James Comey has announced that Hillary Clinton acted ‘carelessly’ but committed no crimes with regards to her private e-mail server through which she conducted official government business.  Further, he announced there would be no charges filed whatsoever.  This is despite numerous criminal offenses being already known by the general public through a plethora of FOIA.  Officially, there is no longer any rule of law in this country.

Read the rest.

Ya Mon.

You Betcha! (7)Nuh Uh.(1)

Democrats, Detroit, Government Incompetence, Michigan, Michigan Politics, Part Time Legislature, Republicans, Taxes

The DPS Bailout – Debts & Obligations

by  •  • 7 Comments

Part II - The Eventual Cost of DPS Liabilities to Michigan Taxpayers and Detroit Schoolchildren

Debt ImageDPS 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 2009B Bond StatementDPS 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.

READ MORE ►

You Betcha! (8)Nuh Uh.(0)