Republicans

Elections, Michigan, Republicans

Pence The Right Pick

by  •  • 1 Comment

Donald Trump could have chosen far worse than Indiana Governor Mike Pence.

Pence represents the stated values most conservatives aspire to.  Within only a few minutes of his VP acceptance speech, even the most casual onlooker will recognize the sense of humility, with passion for family and service to country.

The inclusion of Pence on the ticket should clarify that Trump has the ability to choose well for his team, and is rewarded with a pick that inspired the crowd, and reinforced the sense of competitiveness in the presidential contest.

If you know anything about Hoosiers, you know we like to suit up and compete. We play to win. That is why I joined this campaign in a heartbeat. You have nominated a man for president who never quits, who never backs down — a fighter, and a winner. Until now, he has had to do it all by himself, against all odds. But this week, with this united party, come November 8, I know we will elect Donald Trump to be the 45th President of the United States of America.

Indeed.

The Governor of a state which has cut taxes consistently, lowered the bureaucratic weight of state government, and put more folks to work, also has a budget surplus in his state in which Michiganians should be envious. Unlike faux conservatives, he actually subscribes to the concept of limited government.

READ MORE ►

You Betcha! (13)Nuh Uh.(0)

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, 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)

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)

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

The DPS Bailout – The Bankruptcy Alternative Not Taken

by  •  • 1 Comment

Part I - No, The Richmond USD Case Did Not Challenge U.S. Bankruptcy Court Authority

Daniel Howes ImageGovernor 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.

READ MORE ►

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

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

I can’t wait until the rest comes due!

by  •  • 0 Comments

Gov. Snyder, Sen. Meekhof and Sperker Cotter demonstrating their best use for Michigan Taxpayer dollars.

With that conveniently (and consistently) “overlooked” $3.5-billion in debt, the Mi(a)GOP just handed the Michigan House to the democrats in the fall.

Screwed Image 1

Here’s a not-so-subtle hint.

 

More to follow…

 

You Betcha! (5)Nuh Uh.(2)

Conservative News, Elections, Michigan, Republicans, Research & Analysis

The Winner of “Survivor: Cuyahoga” is . . .

by  •  • 2 Comments

Donald Trump isn’t the republican nominee, and Ted Cruz hasn’t been mathematically eliminated . . . yet.

At roughly noon on May 4th, after running fourth in a three-man race for seven consecutive weeks, John Kasich finally suspended his presidential nomination campaign (raising the obvious question of, “What the hell took so long?”), leaving Donald Trump as the “sole survivor” of what was originally an eighteen-candidate republican field. And, go figure, before Cinco de Mayo was in the books, various talking heads and keyboard pundits were acknowledging, with varying degrees of enthusiasm, that The Donald was now the presumptive republican nominee. However, to channel L. P. Berra, this campaign ain’t over ‘til it’s over, and despite a certain well-circulated AP report, a certain critical milestone hasn’t yet been tallied into Trump’s column, and so June 7th is still going to matter . . . very much.

READ MORE ►

You Betcha! (7)Nuh Uh.(5)