Rick Snyder tells Michigan Taxpayers (living outside of Detroit) to go spin on it.

This story is certainly getting very little attention across Michigan.

I just cannot imagine why?

After living large from the public trough for decades, using the same pubic treasury to pay hush money in order to avoid embarrassing behavior from the public spotlight, money from the public treasury going to businesses that have bought off city council votes and getting a disproportionate share of a myriad of breaks and special carve-outs from Lansing during all that time (and I’m just starting here), Governor Snyder is going to play the crony capitalist game one more time and put Michigan Taxpayers on the hook again.

 

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Quick recap.

Last year Detroit announced that it was filing for bankruptcy.

With outgo far exceeding income, not to mention the fact that the city was in way over its eyeballs in debt it freely and willingly accepted, this was inevitable.

An Emergency Manager, Kevyn Orr was subsequently appointed to take the day-to-day decision making away from the children and put it into the hands of an adult.

Practically all of Orr’s decisions were criticized by the status quo, but when you have a lot of bills to pay and little to pay them with…for many associated with Detroit Government, this was their first experience with the real world that all of us deal with on a daily basis.

Some of those decisions were particularly hard, including those involving worker pensions and benefits.

I’ve argued that yes, Detroit City Government made promises that it couldn’t realistically keep. But given that Detroit also had significant assets that could be sold off (i.e. Detroit Institute of Arts, Detroit Water Department) to minimize any proposed cuts.

In March, EM Orr submitted in bankruptcy court his Amended Plan (if anyone is interested, it’s about 235 pages long and can be found at this link), which, short version, involved VEBA’s, pension cutbacks, a partnership with DWSD and an unheard of deal with the DIA to right Detroit’s financial ship.

With an “investment” of $100-million from the DIA (which it didn’t agreed too as easily as it should given the circumstances), about $370-million from local foundations and $350-million FROM MICHIGAN TAXPAYERS, the DIA will be spun off to become an independent non-profit and Orr will have over $800-million to cover Detroit’s debts.

The fact that outside groups have offered almost $2-billion for the DIA is apparently off the governor’s radar.

To top things off, where Gov Snyder gets off giving Detroit $350-million is a real head scratcher.

Detroit dug itself into its financial hole all by itself.

Not only are there a number of projects around Michigan which could use that money (like health care costs that the Tobacco Settlement source of revenue Snyder is citing), but other Michigan Cities should stand up and ask, “Where’s my bailout”?

My sources tell me either sometime either this week or next, someone will throw a bill in the hopper to finalize this theft.

If you live in places like Traverse City, Escanaba, Grand Rapids, or Holland and feel that this is a suitable expenditure, then sit right back and do nothing.

If you can find better ways to spend $350-million than to assuage the conscience of Rick Snyder or his crony capitalist compatriots, then I highly recommend contacting your local state rep & senator and let them know right away.

You Betcha! (9)Nuh Uh.(4)

  3 comments for “Rick Snyder tells Michigan Taxpayers (living outside of Detroit) to go spin on it.

  1. April 21, 2014 at 10:11 am

    Good wrap up KG.

    Thanks!

    You Betcha! (2)Nuh Uh.(0)
  2. Corinthian Scales
    April 21, 2014 at 12:19 pm

    www.strongerdetroit.com

    Bolger is a duplicitous idiot too.

    Bolger confirmed Friday that state officials are discussing a lump-sum payment toward Detroit pensions that would be “discounted” based on the present value of Snyder’s $350 million pledge over two decades.

    The Snyder administration is contemplating either issuing a bond to make the payment that would be secured by the perpetual tobacco settlement funds or making the payment all at once using one-time surplus revenues, Bolger said.

    “Once we make the decision if it’s worthwhile to go forward with $350 (million), then you decide which format makes the best financial sense for taxpayers,” Bolger said.

    No bailout - period

    You Betcha! (6)Nuh Uh.(0)
  3. Corinthian Scales
    April 21, 2014 at 5:41 pm

    Well, here you go KG. Here's some more Obama boots for Snyder to lick.

    It is Lew's first trip to Detroit since becoming Treasury chief in February 2013. Lew oversaw the government's exit from General Motors Co. last year and is overseeing the Treasury's efforts to shed its final shares in Detroit-based auto lender Ally Financial Inc.

    You Betcha! (1)Nuh Uh.(0)

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