Tag Archive for Governor Rick Snyder

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

If we can convince you that smoking is good and get you to eat for breakfast what we want you to, then we can definitely get you to support this.

by  • 

Take a good look at the picture below.

Edward Bernays Image

He’s going to factor heavily in this post (and more importantly, what YOU can do to protect your pocketbook).

{Continued below the fold}

READ MORE ►

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

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

Because giving them even more money has always solved Detroit’s problems.

by  •  • 13 Comments

Hold onto your wallets because the fun is set to begin again tomorrow.

Last week the Michigan House, in response to the temper tantrum thrown by the Detroit Federation of Teachers (which to be fair, was in response to the gross ineptitude of one Judge Steven Rhodes), passed yet another in a long line of “life preservers” to the failed Detroit Public School district.

Despite having been “locked out” by administration (seriously, that is what the DFT was using as a speaking point on every local talking head show last weekend), things went back to normal by Wednesday.

I’m still trying to wrap my head around the concept of how calling in sick en masse is somehow the equivalent of being “locked out” from your place of employment…but I digress.

Unlike the bailout proposed by the Michigan Senate, the House package is about $200-million lighter than the Senate’s, and is choked so full of poison-pill provisions that it is guaranteed to cause even more problems.

 

Bus roll over

“Not to worry! With a little elbow grease and some friendly verbal persuasion, we’ll have you upright and humming along the road in no time,” our relentlessly positive Gov Snyder allegedly remarked about the latest DPS bailout.

{More below the fold}

READ MORE ►

You Betcha! (10)Nuh Uh.(0)

Conservative News, Cronyism, Democrats, Elections, Flint Water Fiasco, Government Incompetence, Michigan, Michigan Politics, Republicans

Bad Optics = Serious Political Jeopardy

by  •  • 4 Comments

Proper Prior Political Planning Prevents..............

Snyder ImageOur zillionaire Governor is hitting up the Michigan Treasury for $ 1.5 million to cover the cost of really excellent lawyers who are mounting his criminal defense in the Flint water fiasco. Yesterday, he suggested that the two MDEQ employees criminally charged in the Flint water fiasco will no longer receive State paid legal representation. The State had been paying for outside counsel for Stephen Busch and Michael Prysby since AG Schuette stripped them of direct state assistant AG legal counsel in February.

Apparently, the distinction here is actually being criminally charged. Snyder hasn’t been, but Busch and Prysby just got charged.. AG Schuette could not resist piling on with the same common law misconduct in office felony charge used against Courser and Gamrat, but the actual substance of the statutory charges here are lying and tampering with evidence.

READ MORE ►

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

Conservative News, Democrats, Detroit, Elections, Flint Water Fiasco, Government Incompetence, Michigan, Michigan Politics, Part Time Legislature, Republicans

21st Century Education Commission

by  •  • 5 Comments

This Summer's Dog and Pony Shows Commence With A Brazen Common Core Promotion

Dog and Poney Show Image 4Governor Snyder announced his 21st Century Education Commission in Executive Order 2016-6 last week. According to his press release:

“The commission will be responsible for analyzing top performing education systems in the nation, identifying issues impacting Michigan’s academic success, and recommending changes to restructure Michigan’s education system.”

You will be forgiven for harboring suspicions that this is another vehicle to promote Common Core. It is. Same type of political сове́т that did such a fine job promoting Proposal 2015-01.  Remember TAMC?  This playbook is getting old.

READ MORE ►

You Betcha! (10)Nuh Uh.(0)

80th District Special Election (2015), Conservative News, Cronyism, Democrats, Detroit, Elections, Flint Water Fiasco, Government Incompetence, Michigan, Michigan Politics, Part Time Legislature, Proposal 15-1, Republicans, Taxes

RICO !!!

by  •  • 12 Comments

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?

READ MORE ►

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

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

Whoopie Ti Yi Yo, Git Along Little Dogies

by  •  • 19 Comments

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.

READ MORE ►

You Betcha! (14)Nuh Uh.(0)

Conservative News, Cronyism, Democrats, Elections, Flint Water Fiasco, Government Incompetence, Michigan, Michigan Politics, Republicans

An Ill Portent From Michigan’s Presidential Primary

by  •  • 29 Comments

Massive Democratic Turnout on March 8th Puts Control of the Michigan House in Play

Dead Elephant Image 4aYesterday’s Presidential primary in Michigan broke the participation record set back in 1972’s Presidential primary – both in absolute terms and as a percentage of registered voters participating. While the League of Women Voters types will laud this, the establishments in both the Republican and Democratic Parties are flummoxed. Donald Trump crushed John Kasich and Bernie Sanders beat Hillary. Establishment candidates failed. Both party establishments are scrambling to finesse the insubordination of their voters.

Pundits figure that the Democratic Party establishment can bring their obstreperous base to heel, but few figure the Republican Party establishment will have any corresponding success. The prospective success or failure of their counterinsurgency warfare, and its effect upon November, fixates the press and both establishments.

But there is a less obvious, very ill portent here for Michigan Republicans.

READ MORE ►

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