Taxes

RICO !!!

It's Spring and Lawsuits Are Busting Out All Over

Blind Justice Image 3Just a few short weeks ago, it appeared that the Presidential race and State House elections would dominate political news in Michigan for the rest of the year. Now it appears that courtrooms in Detroit and Lansing will provide compelling political drama as well. Drama which is going to cost Michigan taxpayers a bunch of money.

There have been a number of lawsuits filed over the Flint water fiasco (over 71!), but yesterday a consortium of law firms filed a Federal class action lawsuit on behalf of Flint residents using the 1970 Racketeer Influenced and Corrupt Organizations Act. This represents a whole new level of legal pain. Civil RICO provides for treble damages when a pattern of racketeering is proven to have occurred over time. It also guarantees the plaintiffs’ lawyers fees, a small fact which assures that civil RICO lawsuits will be pursued with enthusiasm to the bitter end. Conviction applies the stigma of typical previous RICO defendants, such as mobsters and drug kingpins, to a losing defendant. Michigan, at large, is a defendant in this suit. Capisce?

You Betcha! (17)Nuh Uh.(0)

Whoopie Ti Yi Yo, Git Along Little Dogies

Cattle Roundup Image 1

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.

Whoopee Ti Yi Yo, Git Along Little Dogies

When the night comes on and we hold them on the bedground,
These little dogies that roll on so slow;
Roll up the herd and cut out the strays,
And roll the little dogies that never rolled before.

Whoopee Ti Yi Yo, Git Along Little Dogies

Traditional 19th Century American Cowboy Cattle Drive Song

Rhodes Image 1aMichigan’s tax-and-spend establishment continues to demonstrate world class tactical flexibility as they pursue their dubious ends. Their latest tour de force is the setup for the impending Detroit Public Schools bailout. Michigan’s legislators are being driven like cattle.

The new state appointed emergency transition manager of the Detroit Public Schools, retired U.S. Bankruptcy Court Judge Steven W. Rhodes, announced that the district would shut down on April 8th due to a lack of funds. This chilling announcement came a week after Governor Snyder appointed him to replace Darnell Early, who resigned at the end of February. Darnell Early, for some reason, failed to inform Michigan of the April 8th drop dead date. Judge Rhodes made his announcement four weeks in advance of the projected shutdown in a full court press to get a bailout from our State Legislature.

Detroit Public Schools LogoThe first problem here is the State Legislature is scheduled to take two weeks off in the four weeks leading up to April 8th. The last week of March and the first week of April. Judge Rhodes certainly knew this, so the dilatory announcement is unquestionably a deliberate effort to stampede the Michigan Legislature into immediately delivering $ 50 – 70 million to DPS, no questions asked. Two weeks is not a reasonable legislative time frame, rather it is herding legislators like cattle on a two week drive. An echo of the tactics used by Judge Rhodes to ram through the bungled Detroit bankruptcy.

Governor Snyder has been floating an inchoate plan to rescue the Detroit Public Schools since the middle of last year; one which originally envisioned the creation of a ‘bad debt’ shell district and a new, debt free district by cellular division. Wasn’t really well received anywhere, even after he added dissolution of the much hated Education Achievement Authority. As his problems in the Flint water fiasco have mounted, Governor Snyder decided to wash his hands of the DPS situation by throwing $ 700 million at them to extinguish their ‘operating’ debt and return control to the next generation of local thieves elected school board members.

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Detroit Schools Bailout Opposed

MRG Poll Shows Michigan Voters Strongly Oppose Using Taxpayer Money for DPS’ $715 Million Bailout.

bailoutsSome information from the Michigan Association of Public School Academies

MAPSA notes that the the poll is very timely, because the bailout is up for a vote today.

As expected, Michigan voters strongly oppose using taxpayer money to pay off the Detroit Public Schools’ $715 million in debt, according to a new poll by the Marketing Resource Group (MRG). The poll of 600 likely Michigan voters, commissioned by the Michigan Association of Public School Academies, was conducted Feb. 22-27.

Statewide, only 33 percent of voters favor using taxpayer money to pay off DPS’ debt, while 56 percent oppose it (with most of those saying they “strongly” oppose it). Even among Detroit voters, sentiments are almost evenly split, with 40 percent favoring the bailout and 38 percent opposing it. In the entire Metro Detroit region, the bailout also isn’t popular, with only 37 percent favoring it and 52 percent opposing it.

You Betcha! (11)Nuh Uh.(2)

Bitter Consequences

Scorched Earth Politics Isolates the Republican Establishment in Michigan

Mitt Romney Image 1Anyone who watched or listened to Mitt Romney’s lame assault on Donald Trump yesterday had to wince at the Obamacare architect and gun control proponent questioning the bona fides of the current Republican front runner. Hypocrisy at its finest. A blatant violation of Reagan’s Eleventh Commandment. A testament to the abject desperation coursing through the Republican establishment today. Stark evidence of how few friends the Republican establishment actually owns has.

Just how did the Republican establishment get themselves into this predicament?

What does their predicament portend in Michigan politics?

This year’s Presidential nomination process demonstrates convincingly that money is no longer a substitute for actual human support in a political process where the great unwashed get to vote. Money – and the TV advertising it bought – had a 40 year run buying elections, but this elixir of modern American politics is no longer working. ¡Jeb! is very expensive history. The great unwashed are in open revolt.

Ace over at the Ace of Spades HQ blog offered the very best analysis of the national Republican establishment’s current predicament, which compelled Mitt’s embarrassing performance yesterday. You should read it in its entirety, but in a nutshell:

The Republican establishment has no one credible to make their case against Donald Trump. Absolutely no one who has even a shred of credibility with Trump supporters. They sent Mitt Romney out on yesterday’s kamikaze mission because they had nothing better to offer. Then they will have to spend a mountain of wealth with no real prospects of success. And engage in strong arm tactics. Making an embarrassing spectacle of themselves.

You Betcha! (16)Nuh Uh.(1)

Because

Just to be clear.

A while back this site left the rah-rah part of the neighborhood.

Rightmi.com stopped being the default cheerleader for the Michigan GOP as a matter of principle.  Particularly since the primary part of the MiGOP has all but abandoned its tenets and reason to exist.  What exists now is a shell of pseudo conservatism, and a mockery of the platform under which the party pretends to exist.  Arguably, we still prefer the Republicans who run on conservative platforms but the party mechanism makes it tougher to sort them out.

There is some seriously spoiled fruit in the party.  Snyder is no ‘Republican,’ yet his ‘purchasing’ of, and carrying the flag as one, is enough to fool the soft stupid on both sides of the aisle.  The machinery in place to keep Republicans in majority has corrupted the ability to recruit and retain true conservative leadership as well.  Ronna Romney does her part to keep those crazy doctrinaire Republicans in check using party money and resources.

In fact, its one of the reasons I am changing my phone service to a different carrier.  It allows me to block solicitations for the MiGOP, and these calls usually come from outside the state anyhow.

Having said all that, I still believe today’s loyalist Democrats are the bane of intellectual development.  Even more so than the blind loyalist Republicans who still support bad apples no matter what..  Flint, Detroit, etc..  The inability to look at the results of generational liberal rule and deduce the higher incompetency rate is beyond mind blowing.

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The Dismal Science Confutes Emergency Management in Flint

The entire world now knows what crass bureaucratic stupidity, feeble political direction, and witless press coverage did to Flint. We have demonstrated that Flint’s politicians and financial managers made terrible decisions in an effort to replace plunging tax revenue, which had reached statutory and constitutional rate limitations.

Flint Water Bill 1The foremost source of revenue expanded was Flint’s water & sewerage charges. Annual free cash flow from water & sewerage charges was increased from nil to $ 28.7 million (bottoms of page 3-13) over the decade from 2004 [FY2005 CAFR, large file] to 2014 [FY2015 CAFR, large file]. The big jump in free cash flow from water & sewerage charges occurred in 2014 as a consequence of Flint River sourcing. Flint only had to pay the DW&SD pirates for water up to April 25th in 2014. Annual free cash flow from water & sewerage charges in 2013 [FY 2014 CAFR, large file] was only $ 9.4 million when they paid DW&SD all year. Why Flint resourced to the Flint River in one number: $ 19.3 million more in cash flow. And most of this $ 19.3 million is now gone with the return to DW&SD water. We will know how much gone later this year.

That $ 28.7 million in free cash flow during 2014 was a 77% markup on actual Flint water & sewerage costs. Only $ 7 million of it was used for infrastructure, mostly to prepare for the now abandoned Flint River sourcing. Only $ 2 million of it was used to pay off water & sewerage debt. The remaining $ 18.5 million was used by other Flint city departments and applied to other Flint obligations. That $ 18.5 million dollars became 22% of all Flint City revenues. Greater than any other source of revenue, greater than income tax revenue, greater than property tax revenue, greater than State revenue sharing, greater than Federal revenue sharing. That $ 28.7 million dollars was the only reason Flint was able to exit emergency management. That and a $ 65.3 million theft from restatement of Flint’s water and sewerage enterprise fund net positions, from their 2014 CAFR to their 2015 CAFR (compare ending 2014 to beginning 2015 net positions on the bottom of pages 3-13).

Let’s consider a counterfactual. Suppose that Michigan’s bureaucrats and political leaders were actually competent and, under the unrelenting scrutiny of a watchful press, arranged for proper chemistry controls of Flint River sourced water. No Flint residents were exposed to lead, no one died from legionella pneumophila, and Flint residents sang the praises of their new water. Its tough to ignore recent history, but do so for a moment so we can explore a very important question:

Would the financial reorganization of Flint under its popularly elected politicians and emergency managers have worked?

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Very Sad News

Scalia 1

Associate U.S. Supreme Court Justice Antonin G. Scalia was found dead this morning at Cibolo Creek Ranch, during a quail hunt in the Big Bend region south of Marfa, Texas. Natural causes are presumed.

Justice Scalia was the author of District of Columbia v. Heller, 554 U.S. 570 (2008), the landmark decision which held that the Second Amendment to the United States Constitution applies to federal enclaves and protects an individual’s right to possess a firearm for traditionally lawful purposes.

Justice Scalia was the most prominent advocate of originalism, the principle of constitutional law interpretation which finds the Constitution’s meaning was fixed at the time of enactment.  This philosophy has challenged the ‘living document‘ fraud promoted by lefties determined to reshape America in their socialist vision.

Justice Scalia’s legal wisdom informed innumerable Michigan court decisions and guided a generation of liberty oriented lawmakers across our entire country as well.  Historians will rank him with Oliver Wendell Holmes as the greatest two intellects ever seated on the U.S. Supreme Court.

We extend our deepest sympathies to his wife, Maureen Scalia,  and his nine children.  A terrible loss.

His passing will create a a legal (and political) vacuum, but for now let us thank God for allowing us 79 years of this great legal mind and wish him God Speed.

 

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Status Report-Recall

previewBeen a little busy circling the wagons here…

We are now in the process of organizing volunteer circulators, have at least some in 6 of the 8 counties involved in the Schmidt recall. The good news…

“The minimum number of valid signatures required on a recall petition is equal to 25% of the total number of votes cast for all candidates for governor in the relevant Senate district in the most recent gubernatorial election. MCL 168.955. There is no requirement that a certain percentage of signatures come from each county that comprises the Senate district.

For the 37th State Senate District, the minimum number of valid signatures required is 23,384. For the 35th Senate District, the minimum number of valid signatures required is 22,491.”

The above quote is from the Bureau of Elections response to our e-mail concerning minimum requirements, this means that we could theoretically collect ALL 23,384 signatures from ONE county. Any one county come to mind? This alters our approach only slightly though, as circulators within and without Senate District 37 are hell bent on putting Wayne on an August recall ballot. So we will attempt to collect throughout the district.

In additional to the March 8th Presidential primary, in the first week of March, at least two of the candidates have scheduled visits to Traverse City. Donald Trump is one of them, and if previous crowds at his rallies are any indication, a few well placed circulators should have a field day roaming throughout the crowds. I would assume these same politicos will stop in Grand Rapids, aiding the folks running the Meekhof recall.

We have also scheduled an rVotes training session for our group(s) in mid-March to identify and contact likely signers and voters for reduction into highly ;localized walking lists. This system will allow us to contact and canvass the most likely signers of the petition, and these will be the most likely to vote to replace Schmidt.

We have reserved a domain name for the recall, which will be announced after the website has been established, along with a DBA, committee, and bank account for State and Federal (if necessary) accounting/reporting purposes. The site will also have a “Donate” button/page for contributions. Other campaign ‘goodies’ are in the works, but first we must establish a cohesive organization and business model.

2,000 petitions have been printed, and will be distributed shortly after Valentine’s Day (this one’s for you, Wayne)…Some basic training for new circulators will be accomplished at the same time, and signs/handouts distributed at these meetings. We have established County Captains (coordinators) in 4 counties to facilitate and monitor the petition process. We have 3 weeks to prepare for the signature launch, any volunteers may contact me at my e-mail: retvet242@yahoo.com, which has survived several hack attacks last month, or by phone: 231-709-0474.

Also of note, we have been warned to stay away from Charlevoix County by one John Haggard, which we take as a direct challenge of course.

Wish us good luck here in the second phase of this process. This is our chance to conduct a referendum on Wayne Schmidt’s performance as not only a State Senator, but a Rep in the 103rd and 104th. His record in the House is now also ”fair game”.

In pursuit of freedom,

Tom Backers

You Betcha! (22)Nuh Uh.(2)

Time to Light These Clowns Up

Someone needs to impress upon the MRP legislative and executive leadership that “NO” means “NO” . . . period.

Roughly nine months ago, We the People of Michigan, by a record-breaking 4-to-1 statewide margin, told our elected nobility in Lansing “HELL NO” on a proposed tax increase, which they’d tried to sell as a road proposal, but which the voting public saw clearly as a political sausage job that produced a cronyist’s grab bag of goodies. Thus, every single county in this state, without exception and in no uncertain terms, clearly delivered a mandate-level message that we are no longer interested in extending the legislature a taxpayer-funded line of credit, until such time as they get their spending priorities in order. You would think that a statewide vox populi shellacking, with a turnout rate typical of the biennial congressional primaries, would clue in the GoverNerd, and the rest of the MRP/MIGOPe professional political establishment, that We the People are done being their ATM.

You would think that . . . but you would be wrong. Six months after that ballot box rejection, while most of us were tucking our children into bed (or monitoring local election results), the lords and barons in the Michigan Legislature essentially told we the proletariat that our opinion is irrelevant, and that “no” really means “don’t ask again” – which, of course, they didn’t – by passing a “road funding” tax package that was nearly identical to the core of Proposal 15-1, less the elements required to force it onto the ballot. In doing this, they flatly rejected the clear will of the people, imposed through legislative fiat that which they couldn’t persuade the electorate to publicly ratify, and took yet another step toward government by aristocracy.

You Betcha! (31)Nuh Uh.(6)

Emergency Managers, Emergency Management

Synonyms for Headlee Evasion

Darnell Early

Darnell Early

La victoria trova cento padri, a nessuno vuole riconoscere l’insuccesso
A victory finds 100 fathers, nobody claims credit for a failure.
Galezzo Ciano, 2o Conte di Cortellazzo e Buccari, Diary (1942)

The left wing meme on the Flint Water fiasco is that Governor Snyder seized absolute control of Flint and installed doctrinaire Republican viceroys who ruthlessly slashed Flint’s payroll and expenditures without any regard for the residents.

If only this were so.

Michael Brown

Michael Brown

The Flint emergency managers had only one common thread in their backgrounds, long records of administration in government and the nonprofit sectors. No productive experience. Experts at spending other people’s money. Well paid experts.  Outright Democrats or chameleons politically; typical politics of the bureaucratic class. Look at the backgrounds of the Flint emergency managers:

Edward Kurtz

Michael K. Brown

Edward Kurtz, again

Michael K. Brown, again

Darnell Early

Gerald (Jerry) Ambrose

Emergency managers are not viceroys with absolute powers. The evolution of emergency management in Michigan was frustrated by public union opposition. Five successive laws, one repealed by referendum. The law in force during the critical Flint water fiasco decisions is PA 436 of 2012. The powers it confers upon emergency managers are:

MCL 141.1549, Section 9

(2) Upon appointment, an emergency manager shall act for and in the place and stead of the governing body and the office of chief administrative officer of the local government. The emergency manager shall have broad powers in receivership to rectify the financial emergency and to assure the fiscal accountability of the local government and the local government’s capacity to provide or cause to be provided necessary governmental services essential to the public health, safety, and welfare. Following appointment of an emergency manager and during the pendency of receivership, the governing body and the chief administrative officer of the local government shall not exercise any of the powers of those offices except as may be specifically authorized in writing by the emergency manager or as otherwise provided by this act and are subject to any conditions required by the emergency manager.

The emergency managers replace the mayors, council, and chief administrative officers of the municipal governments. While this does indeed give them extraordinary powers of control, their control is anything but absolute. The municipal charter continues in effect and continues to protect the prerogatives of lesser bureaucrats. The vague statutory powers of emergency managers beyond replacing the mayor, council, and chief administrative officer poses unremitting legal jeopardy to emergency managers. Encourages timidity and bureaucratic subterfuge. Not absolute control.

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