Fast Times At The Detroit Public Schools Community District
Norman Shy, the Detroit Public Schools vendor who stole $ 3 million with the capable assistance of 12 DPS principals and one DPS administrator, has begun paying his court-ordered restitution. The Detroit Free Press reported today that the Detroit Public Schools Community District has received $ 1.5 million from Mr. Shy, out of the total $ 2.7 million in restitution U.S. District Court ordered Mr. Shy to pay in September 2016.
The problem here? Mr. Shy’s scam looted the pre bailout/bankruptcy Detroit Public School District, not the new Detroit Public Schools Community District. The new Detroit Public Schools Community District was created in July 2016, before Mr. Shy’s sentencing but well after his 13 year long scam concluded.
The legacy Detroit Public School District still exists as a ward of the State of Michigan to pay off more than $ 500 million in ‘operating debts’. Debts which, in part, are directly due to Mr. Shy’s scam and dozens of other thieves. Michigan taxpayers at large are paying down those debts of the legacy DPS District, and will be paying until 2025 – if not longer.
Mr. Shy’s restitution payments should be paid to the legacy DPS District, not the new DPSC District. Its not like Michigan taxpayers owe these monies to the new DPSCD. Michigan taxpayers fronted the DPSCD $ 617 million as part of the 2016 bailout/bankruptcy, and the new, ‘debt free’ district is now being financed just as generously as every other school district in Michigan.
$ 1.5 million is real money. Restitution should be directed to those financially damaged. In this case, it is the taxpayers of Michigan – not the new Detroit Public Schools Community District – who were looted by Mr. Shy.
Anyone still wonder why Michigan residents are so ill disposed towards Detroit and its very creative government accounting practices?
The Michigan House just voted to give the Detroit Public Schools a $500 million bailout and the State Senate wants to give $800 million.
104th State Representative and incumbent Larry Inman explains it away as a necessary evil. He suggested on the Ron Jolly radio program Wednesday morning, that lawyers warned house leadership that if they didn’t do something, the courts would take over, and it could be far worse. He referenced the Michigan constitution, and its requirement on the legislature to provide funding for the schools.
My guess is that he did not ask the question of the attorneys advising the house “what might happen if every school district subjected the taxpayers to the same challenge?”
YES, the state is supposed to provide an education. The legislature is supposed to “maintain and support a system of elementary and secondary schools.. ” In fact, From the state constitution:
Asked often enough about government: "Is this even legal? "
One might question the way in which money can be transferred to ‘cover’ other expenses.
We know that pensions are untouchable, but in times of financial distress, some governmental entities are finding out that health care is NOT off the table. However, others are developing more abusive ways to maintain the ‘status-quo.’ From Bloomfield TWP:
Bloomfield Township taxpayers have been receiving higher and higher bills for water and sewer each year. Yet in a controversial 5-2 vote in late 2015, Bloomfield Township Board of Trustees transferred $2.76 million of the fees collected from the citizens water/sewer bills and deposited those millions into a Retired Employees Health Care Trust.
A toilet at Highland Park Community High School. Photo by Audrey Spalding. (courtesy of Capitol Confidential)
More examples of enlightened utopian planning.
Not surprisingly, Highland Park has found itself as one of the latest symptoms of leftism. The city that boasted a 3712 to 43 win of Marxist Barack Obama over Moderate Mitt Romney in 2012 has achieved its natural evolutionary state. The canker sores of progressive policy have found a new (and old) host. From a Snyder admin release yesterday:
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.
While All Is Not About ONE MAN, This Example Of Pay For Play Is Clear
There is an explanation I have always used for my sincerest dislike of the MEDC, its mission, and how it takes advantage of the taxpayer for political payoff.
“If a business owner finds it necessary to take taxpayer dollars to start, maintain, or expand their enterprise, then that business model is already in trouble. If there is no NEED for the money to survive, then it is simply a matter of theft.”
Its hard to be any clearer than that.
Any politico who uses the term “Jobs created” when discussing the MEDC grants, is trying to justify the stealingthat must happen first, and is central to the MEDC program. In the history of subsidizing business, one would think that the predictions of ‘job growth’ with accomplished results would speak for itself. In fact, one might think such mechanisms insofar as they are touted, would make the news at least once a month if not weekly as a raging human interest success worthy of celebration.
So, this is what Snyder, Richardville, and Bolger, are peddling as their $350M “Grand Bargain”. Got it. And, Oakland County you sure know how to pick winners too.
“That is why it was a no-brainer when I supported a vote on the DIA millage in 2012. More than 63% of Oakland County voters agreed with me. And a majority of voters in Wayne and Macomb did, too.” – L. Brooks Patterson 01/19/2014
Cronyism, corruption, bailouts, favored status, confiscation through eminent domain, picking winners and losers. Sound familiar?
This documentary premiered yesterday in Washington DC, and offers some historic perspective to the decline of Detroit.
Perhaps even, an explanation (a warning) of what is to come next, as long as we allow our governments to engage in corporatism; a way in which our taxpayers dollars are funneled into the pockets of special interests and how corruption has abused Detroit, providing little benefit to those paying the bills. At one point Thomas LaDuke makes a great point about not questioning “people’s heart or motives,” but his frustration of how city residents don’t actually see how the city has been run.
“Decisions have consequences” as told in the newest movie by FTR productions & MrSmithMedia.
Rick snyder is about to give away $350 Million in taxpayer money to ‘save’ the DIA. Not because Michiganians around the state made the mistake of financial mismanagement, but because of continually unaddressed cronyism, criminality and fraud within Detroit, and its leadership.
The Documentary addresses Detroit, the auto bailouts, and the reasons things have gone terribly terribly wrong. It will offer a precautionary tale for those who might wish to follow Rick Snyder down the continual slippery sloped that is Detroit, Michigan.
It premiers next week in Washington DC, and then will be available on Youtube. Watch the teaser below!