Tag Archive for Wayne County

Bankruptcy Stalks the Guardian Building

Dead Man Walking JPEGThe ball is now in the Governor’s court, so to speak.  The report is not public yet, but the press release is out.  It only took the State independent review team 18 calendar days to figure out what everyone knows: Wayne County is in a ‘Financial Emergency’.  Here is the money shot from the Michigan Department of Treasury press release:

The team’s extensive report indicates that numerous conditions led to the determination that a financial emergency exists in the county. Those conditions include the following:

  • The county’s last four annual financial audits re­­vealed notable variances between General Fund revenues and expenditures as initially budgeted, as amended, and as actually realized. In addition, County officials underestimated actual expenditures in three of the fiscal years by amounts ranging from $16.7 million to $23.7 million.
  • County officials engaged in unbudgeted expenditures in violation of Public Act 2 of 1968, the Uniform Budgeting and Accounting Act.
  • Although there was agreement among county officials that existing de­tention facilities are inadequate, there is no consensus about whether to complete construction on a new jail or to renovate existing facilities.
  • According to the county executive’s recovery plan, unfunded healthcare-related liabilities were estimated to be $1.3 billion as of the last actuarial valuation with funding set aside for this purpose of less than one percent of liabilities. Healthcare-related liabilities represent 40 percent of the county’s long-term financial obligations.

The Governor now has 10 days to take one of five actions: do nothing, conduct another ‘neutral’ evaluation, arrange a consent agreement, impose an emergency manager, or file the County for Chapter 9 bankruptcy in U.S. Bankruptcy Court.

You Betcha! (12)Nuh Uh.(0)

We’ll show you!

You’d better not mess with Detroit! Or, you’ll get what’s coming to you!

The latest shakedown of Taxpayers in Southeastern Michigan took an interesting turn this morning.

Not because of its inaccessible meeting location at Waterworks Park in Detroit.

But, because of something that wasn’t expected during the meeting.

{Oh, you’re gonna love this…}

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

A Dead Man Walking: Wayne County

Your Least Loss is Your First Loss

Bankrupcy WC 2Wayne County Executive Warren Evans told the assembled self very important persons at the Mackinac Policy Conference last Friday that he now believes that his county government can avoid bankruptcy. “He is now comfortable with the options” was the report. Little did he know that, on the very same day, Wayne County Circuit Court Judge Lita Popke gave the County 48 hours to pay its retirees $ 49 million dollars to restore their 2010 ’13th check’ retirement benefit. Wayne County told the court flat out that it doesn’t have the money.

The Wayne County Commission voted yesterday to tap most of the last remaining funds in the County’s much abused Delinquent Tax Revolving Fund, however Warren Evan’s subsequent veto threat all but assures that this summer’s county property taxes will increase 1.23 mils to pay this judgement. This property tax increase will not even require a vote of affirmation under the Headlee Amendments to the Michigan Constitution, because it is pursuant to a court order.

’13th checks’ are a devious method of looting pension funds which began in the 1980’s, in Michigan. When some Michigan public pension funds earned more than their targeted rate of return in a year, say 8%, the ‘surplus’ earnings got doled out to retirees in the form of a 13th check.  These 13th checks could amount to far more than the pension fund’s actually surplus.  Retirees never had to give back their prior 13th check payments when the pension funds dialed up a big loss, so the 13th check was an opportunistic form of looting – not an equitable form of risk & gain sharing. This practice has occurred in state pension plans, county pension plans, and city pension plans across Michigan. The particular problem in Wayne County is that Robert Ficano stripped his pension funds of the 13th check payment funds in 2010 to make his books look better. Worst of all, Wayne County’s pension funds are only about 44% funded and their OPEB’s (retiree medical care, etc.) are essentially unfunded.

Wayne County’s accounting is nebulous, to be charitable. A read of their 2014 CAFR (22 MB document, it took a lot of lipstick to make this dead pig look good!) shows that the County is carrying forward an unassigned deficit of $ 82.8 million, and only got it down to this awful level by diverting $ 91.7 million from their dwindling Delinquent Tax Revolving Fund to their General Fund in 2014. Then, depending upon whom in Wayne County government you are talking to, Wayne County is still losing another $ 4 – $ 5 million each month.

This amounts to something over $ 50 million per year.

You Betcha! (19)Nuh Uh.(1)

(Failing) School’s out… completely.

With apologies to Alice Cooper.

 

♪ “Well we got no choice.” ♪
♪ “All the girls and boys.” ♪
♪ ”Makin’ all that noise .” ♪
♪ “’Cause they found new toys.” ♪
♪ “Well we can’t salute, ya can’t find a flag .” ♪
♪ “If that don’t suit ya that’s a drag.” ♪
♪ “School’s out for summer .” ♪
♪ “School’s out forever .” ♪
♪ “School’s been blown to pieces.” ♪

We should never see this happen again with Taxpayer’s money…ever.

Promoters of Cloward-Piven will need to go back to the drawing board this month.

Another spigot has been turned off…hopefully for good!

{I promise: No more misusing and abusing the songs of your youth below the fold!}

You Betcha! (7)Nuh Uh.(1)

Michigan Democratic Party Sending us and our Money Back to Indiana

Mr. Happy from Westland, has a toothless, nanny government bill he’d like y’all hear about.

donkey-ass-hole-demotivational-poster-1220075234A lawmaker is planning to introduce legislation this week that would reverse Michigan’s decision to legalize louder, more powerful fireworks.

State Sen. Glenn Anderson says the 2011 law was a “monumental mistake” and he heard countless complaints after the July 4th holiday. The Westland Democrat’s bill would reinstate Michigan’s ban on commercial-grade fireworks.

In response to complaints, the Legislature last year gave local governments power to restrict the use of fireworks on the day before, during and after a national holiday. But Anderson says municipalities have struggled to do so, and police departments can’t address noise and safety problems.

REST

Because you *think* you can legislate protecting stupid, Glenn?

Be proud of yourselves, Michigan Senate District 6.

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

You have it. We want it. And thanks to the power of government, we’re just going to take it from you anyway.

“Money is not the tool of the moochers, who claim your product by tears, or of the looters, who take it from you by force. Money is made possible only by the men who produce.” – Ayn Rand, “Atlas Shrugged”

 

{Continued below the fold}

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Four Options

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:

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