2011 MLK Day march in Detroit at Dr. Martin Luther King, Jr. High School: Detroit Public Schools have been destroyed by state takeovers.
By Detroit City Councilmember JoAnn Watson
(VOD: Councilmember Watson’s article is particularly appropriate since Gov. Rick Snyder said on the Mildred Gaddis show March 4 that he is likely looking for a revised consent agreement, thus using the threat of an EM to bludgeon Council once again.)
Feb. 28, 2013
Councilwoman JoAnn Watson was part of delegation that demanded PA4 be put on the ballot at State Court of Appeals.
Detroit’s structural deficit, which has set the stage for serious financial challenges, is driven by root causes, which will not be mitigated by the imposition of an emergency financial manager (EFM) — a post created by a law that Michigan citizens overwhelmingly repealed four months ago. EFMs not only subvert the Republic form of government — the right of citizens to be represented by officials whom they select — their existence also turns the Voting Rights Act of 1965 on its head.
Furthermore, there exists irrefutable evidence that EFMs imposed by the state of Michigan in municipalities and school districts predominated by people of color have not solved financial deficits. EFMs have actually increased deficits, deepened fiscal crises and de-stabilized governmental infrastructures, while robbing citizens of assets, services, access to decision-making, voter representation and accountability.
Maureen Taylor carries sign re: DPS during protest against banks’ role in decay of Detroit and its schools May 9, 2012.
For example, Detroit Public Schools had a $93 million surplus in 1994 and 180,000 students when the state take-over of the schools was put in place — not coincidentally following citizen approval of a $1.5 billion school improvement bond, which was immediately seized by state operatives who removed local elected and appointed officials, while rewarding contracts to political cronies.
With the state takeover in place for 16 of the last 19 years and a governor-appointed EFM still in place, the Detroit Public Schools’ fiscal status has plummeted to a $300 million deficit, the student enrollment has decreased by 140,000, dozens of schools have closed (threatening the survival of neighborhoods) and the state of Michigan is currently seeking, once again, to remove local members of the elected school board who have taken sworn oaths to govern the district.
Pontiac, Flint, Benton Harbor, Highland Park and other predominantly Black cities have also had EFMs appointed for the alleged purpose of addressing fiscal crises — but in these cases the financial deficits have grown much worse, populations have downsized, assets have disappeared and the dissolution of Union contracts and public safety have been the order of the day.
Detroit Project Management Director Kriss Andrews and Mayor Dave Bing at press conference Dec. 7, 2012. Andrews, appointed under the consent agreement, can override decisions of Mayor and City Council.
On April 4, 2012, Gov. Rick Snyder implored Mayor Dave Bing and the Detroit City Council (in a controversial 5 to 4 vote) to approve a consent agreement deal (under the auspices of the EM Law, Public Act 4, which was repealed by the voters Nov. 6, 2012), which authorized Snyder to exercise authority over the city of Detroit; including the appointment of a program manager, a chief financial officer, a financial stability agreement review board, the power to impose sanctions on existing bargaining agreements and other measures that would purportedly arrest the financial crisis.
Under Gov. Snyder’s oversight via the consent agreement/state control, the city’s crisis has worsened. One of the most significant cost-saving measures addressed by the mayor, City Council and the city’s bargaining units was an agreement to achieve $105 million in concessions. But, this historic, unprecedented accord reached by the city and all of its labor unions was disallowed by the governor, inexplicably, in early 2012.
The bottom line? Neither consent agreements nor EFMs have any credible record of “stabilizing” budgets and there have been no successful reports of EFMs addressing root causes like the issues that drive Detroit’s crisis. Examples of root causes:
– Michigan’s $700 million reduction in revenue-sharing allocated to Detroit, during the last decade
– State of Michigan’s $224 million default on a revenue-sharing agreement reached by Gov. John Engler and Mayor Dennis W. Archer
Detroit Police Academy graduates: most Detroit cops are no longer residents.
– Population exodus from the city of Detroit and the private sector exodus from the city of Detroit has eroded the tax base, catalyzed in part by a state-imposed law in 1999 prohibiting the city from mandating the residency policy for city employees. The tax base loss annually has been $8.82 million per year since ’99, impacting neighborhoods, schools and small businesses
– The foreclosure crisis that has gripped the state and the nation has hit the city of Detroit in epidemic proportions; as mortgage firms have prospered and tax-paying families have been victimized by predators who have largely not suffered consequences, while decimating many of the city’s neighborhoods. There must be a moratorium on foreclosures issued statewide
Mike Illitch, owner of Red Wings, Detroit Tigers, and numerous other businesses in Detroit, owes large sums to Detroit.
– State Treasurer Andy Dillon has acknowledged that more than $800 million is owed to the city. A collaborative effort between the state, the city and key partners could garner these resources to stabilize the fiscal shortfall while structural cost-saving measures are mandated to insure that the city is not over-spending
– The city must attract new citizens, respect and retain its current citizens; attract new businesses, respect and retain existing businesses and foster a climate (including expanded rapid transit), which promotes Michigan’s largest municipality. Twenty-first century reinvention of cities requires not just cost-cutting but demands strategic investments for long-term growth and development. EFMs can point to no success toward that end. In fact, they present barriers to growth
– The city’s debt must be re-negotiated so the city’s operating budget is not prioritizing corporate, private sector firms, while employees and citizens bear the brunt of the sacrifice.
We Will Fight Emergency Financial Management! A No Struggle, No Development Production! By Kenny Snodgrass.
Kenneth Snodgrass
Our City doesn’t need an “Emergency Financial Manager!” We, the City of Detroit have “NOT” missed any payroll, we have “NOT” failed to make any of our bond interest payments, or principal payments. We the city of Detroit have “NOT” drawn down our cash being held by the State of Michigan. Showing we have adequate cash to operate, we are paying our bills, and working towards resolving our deficit. Finally that our State Treasurer Andy Dillon has affirmed that the state owns Detroit $800 million in accounts receivable, and over $224 million in outstanding Revenue Sharing to Detroit.
Activist, Photographer, Videographer, Author of 1} From Victimization To Empowerment… www.trafford.com/07-0913 eBook available at www.ebookstore.sony.com
2} The World As I’ve Seen It! My Greatest Experience! {Photo Book}
YouTube: I have over 375 Video’s, over 128,612 hits averaging 4,000 a month on my YouTube channel @ www.YouTube.com/KennySnod. CONCERNED CITIZENS COALITION OF DETROIT
Press Release- March 1, 2013
Cecily McClellan- We the People of Detroit; Rev. D.A. Bullock – 13th Congressional Dst.Chair & Delegation; Rev. Charles Williams- National Action Network (Detroit Chapter); Valerie Glenn- Free Detroit-No Consent; Theo Broughton- Hood Research; Tom Barrow- Mayoral Candidate & President of Citizens for Detroit’s Future; Krystal Crittendon- Mayoral Candidate; Russ Bellant- Detroit Public Library Commission, Chair; Stephen Boyle, Occupy Detroit; Fellow Citizens and Friends of the City of Detroit
FOR IMMEDIATE RELEASE
CONTACT:T. Henry (313) 868-1859
We the People of Detroit, under the united banner of Concerned Citizens Coalition of Detroit, demand to be treated with respect and fairness equal to ALL citizens in the State of Michigan. We invoke our rights as Americans and Citizens under the U.S. Constitution, State of Michigan Constitution and the City of Detroit Charter.
The Financial Review Team and Governor Snyder have misrepresented the facts in their report relative to the City of Detroit. We DO NOT NEED AN EXPANDED CONSENT AGREEMENT nor do we need a SECOND CONSENT AGREEMENT! We DO NOT NEED AN EMERGENCY FINANCIAL MANAGER for the following reasons:
Tom Barrow
The City of Detroit has NOT missed a payroll
The City of Detroit has NOT failed to make a bond principal payment
Detroit has NOT failed to make a bond interest payment
The City of Detroit has not drawn down on the cash being inappropriately held by the state signaling it has adequate cash to operate and is paying its bills and working towards resolving its nominal deficit.
(Paraphrased statements by Tom Barrow- Mayoral Candidate, CPA & Municipal Finance Expert)
Detroit Mayoral Candidate and former City of Detroit Corporation Counsel -Krystal Crittendon released a statement February 25, 2013 as a response to the Governor Snyder-appointed Financial Review Team findings (excerpts):
Krystal Crittendon
“The bottom line: the (Financial Review Team) Report provides no justification for the appointment of an emergency financial manager, especially when it makes no mention of $800 million in accounts receivable owed to the City as confirmed by State Treasurer Andy Dillon.”
According to State Treasurer Andy Dillon, $800 million is owed to the City in accounts receivable and he also admitted on a local talk show that the State of Michigan still owes the City of Detroit over $224 million in outstanding Revenue Sharing that is owed. However, according to the City Charter, the Mayor is the only official that can authorize the City Corporation Counsel to seek recovery of these owed dollars.”
We strongly recommend that Governor Snyder work in concert with Mayor Bing to collect these outstanding debts and that the State of Michigan pays what it owes to the City of Detroit.
Cecily McClellan
“The Financial Review Team criticized the City’s Charter …………… It must be noted that the City’s Charter was required to be, and was, actually, approved by the State of Michigan before it was placed on the ballot to be voted on by Detroit voters. It appears that the state-appointed review team is unaware that the State of Michigan signed off on the 2012 Charter for the City of Detroit before it was adopted by the residents of Detroit.”
We demand that the State of Michigan affirm their review and approval of the 2012 Charter for the City of Detroit prior to it being placed on the ballot for a vote by Detroiters.
Chris Griffiths, Monica Patrick, Sandra Hines of Free Detroit No Consent after repeal of PA 4.
“The City of Detroit negotiated over $150 million dollars in cost savings with the City’s labor unions in December of 2011. These savings were verified by the accounting firm the State of Michigan forced the City of Detroit to retain to assist in deficit reduction measures. After the contracts were negotiated,the Governor then advised the Mayor NOT to submit these contracts to the City Council for approval.Had these contracts been approved in January of 2012, the City would have realized $150 million dollars in costs savings in 2012.”
Rev. David Bullock, Rainbow PUSH
The Financial Review Team’s criticism of the City regarding whether the City has a plan in place to address its financial problems and the slow progress the City has made in implementing cost-saving measures is, therefore, the fault of the State of Michigan, and not the City. We recommend that the State of Michigan assume responsibility for their failure to support this cost saving measure with revenue generating capabilities.
“The Financial Review Team criticized the City for failing to have a plan to address the cash crisis, or the City’s $13.6 billion in long-term liabilities (25 year period). The Financial Review Team’s report contains a table of figures that supposedly comprise the City’s long term liabilities. The table includes lines for ‘Non-General Obligation(s),’ ‘Other Post Employment Benefits Unfunded Actuarial Liabili (ties)’ and ‘Other.’ These three categories total just under $12 billion.
Rev. Charles Williams II of NAN
“We know these are not ‘General Obligations, or ‘General Retirement System Unfunded Actuarial Accrued Liabilities’, or ‘Police and Fire Retirement System Liabilities’, because those figures are found on other lines in the table. If they are obligations of the Water Department, they are funded by Water Department revenues, which are not part of the City’s general revenues, nor are they debts of the City. Rather they would be debts of the Water Board, which Federal District Court Judge Cox has declared to be an entity separate and distinct from the City.
Theo Broughton, Hood Research
“This finding is problematic for several significant reasons. First, the long-term liabilities referenced in the report include debt which is not attributable to the general fund. Less than $2 billion is general fund debt; the rest is attributable to “other” sources, such as DWSD bond debt which is secured. Second, the State had to, and did, approve of the bond transactions which the state-appointed Financial Review Team now criticizes.Troubling is the fact that now the State will not give the City all of the money it borrowed—$50 million is being withheld from the City in escrow.We strongly urge Governor Snyder and the State of Michigan to cease and desist with any further reference to the $12 billion dollar pension obligation cost, due to this misrepresentation being used as a justifiable reason to impose an unelected dictator(i.e., Emergency Financial Manager) over the Citizens of Detroit. We also demand the immediate release of the $50 million dollars barrowed by the City that the State of Michigan is holding from the City in escrow.
Russ Bellant, Chair Detroit Library Commission
Even more troubling is the fact that the City cannot utilize the money it has received to help pay down any debt! The State of Michigan has required the City to spend tens of millions of dollars on experts (Miller Canfield, Milliman, Miller Buckfire, Ernst & Young and the like) selected by the State to tell us what we already know: the City of Detroit is experiencing financial difficulty. This is actually what we are paying the appointed Financial Review Team to tell us.
“Finally, the State made it necessary for the City to have to borrow money in the first place. The State eliminated revenue sharing for all Michigan cities, causing all cities, not just Detroit, to experience financial distress.Moreover, the State used approximately $2 billion in Federal stimulus dollars to bail itself out, and now enjoys a billion and a half dollar surplus, while cities across the State are suffering.”
Valerie Glenn
“[We] urge the Governor to take all of these factors into consideration as he weighs his decision regarding the appointment of an emergency financial manager for Detroit.”
“WE DO NOT CONSENT, WE WILL NOT BE DENIED EQUAL PROTECTIONS UNDER the LAW and WE WILL FIGHT EMERGENCY FINANCIAL MANAGEMENT in any and all forms!”
Mayoral candidate Tom Barrow, with supporters including son in front, at Appeals Court hearing two years ago as he contested the election of Detroit Mayor Dave Bing. Nearly 60 percent of the ballots cast, including all absentee ballots, were deemed “unrecountable” by the Wayne Co. Board of Canvassers. Bing stole that election; now Michigan Gov. Rick Snyder is stealing Detroiters’ right to elect their leaders, in the wake of Bing’s collaboration with him and State Treasurer Andy Dillon.
Tom Barrow, President
Contact: 313-5-detroi(t) 533-8764, Opt 4
STATEMENT BY TOM BARROW, PRESIDENT, CITIZENS FOR DETROIT’S FUTURE
On Governor Snyder’s Appointment of an Emergency Manager for Detroit
I am sickened by Michigan’s Governor talk about my city and my people as if Detroit is the human dump of the state, as if real Detroiters are incapable of running our own city. I became nauseous because we have been led to this position by an inept, unconcerned and disengaged Mayor who knew from day one that a Detroit mayor’s job IS way beyond his abilities. I believe he was recruited from Franklin as his steel business went bankrupt, recruited to do the bidding of conservative interests that covet our city’s assets for private profit.
As I listened, I reflected on my life having been born in a Detroit which I have so come to love and feel protective over. I listened to a man, who has never had a relationship with my city except from afar but who described my home based on a distorted perception created as a result of a inept non-Detroiter masquerading as one of us after being selected as our Mayor.
Tom Barrow (l) and supporters at Board of Canvassers recount hearing, Dec. 23, 2010.
My fellow Detroiters, back in the election of 2009, I was left empty and drained after the mayor’s race because I saw the seals placed on the cases by election night workers had been changed. The fraud was such that the Wayne County Board of Canvassers voted unanimously not to recount the entire 41,215 Absentee Votes and still another 18,736 ballots from the polls where only 9,501 ballots would have changed the outcome.
This discovery was an unprecedented event in the electoral history of this nation, yet not a single major media outlet sought to investigate. I knew with certainty that the process had been rigged but I also knew that it would be too foreign for the public’s minds to get around. But it was only today that I came to realize the “why”.
Family picnics on Belle Isle with gorgeous view of downtown Detroit. BELLE ISLE IS BLACK LAND AS IS DETROIT!
Now Belle Isle, my childhood playground, will be taken from us as Detroiters. The “Cadillac Harper” bus route I remember as a kid and which I took to get downtown to Hudson’s will become a suburban dominated regional authority no longer under my city’s control. Our Water System, the prize of prizes, will be removed from our control and given over to private investors for personal profit and our city’s union contracts will be abrogated. I expect to witness an unprecedented firing of Detroit residents as the city privatizes it functions.
I must say that the city’s longest serving Mayor, Coleman Young, will likely sit up in his grave knowing that what he often referred to as “outsiders”, “doomsayers” and “naysayers” will now be running our city. It is so sad and I am deeply remorseful. I cannot but feel that an outsider’s hate, indifference and disrespect towards Detroiters has caused the loss of my city even before we had a chance to build bridges I knew we could build.
My friends, the great 19th century abolitionist, Frederick Douglass, declared in a famous speech that “Power concedes nothing without a demand, it never has and it never will.” On his death bed in 1895 Douglass’ last words were said to be that “we must continue to Agitate! Agitate!”
Frederick Douglass
In his spirit, I call upon my fellow Detroiters, activists and citizens alike, to let’s meet to plan our actions to combat this abrogation of democracy. It may require civil disobedience in the name of all Americans who love freedom and democracy; it may require us to choose economic targets to boycott; strategic locations to disrupt; facilities to protect symbolically, and a plan of communication to our nation to show our outrage.
Sadly, we may no longer be able to just provide commentary on our plight; we will likely have to execute action meant to demonstrate our resolve to save our city from its looters and the opportunists who wait patiently in the wings. My friends, the enemy has devised and has implemented its initial long-term plan of disenfranchisement, its “quiet war” of propaganda and manipulation, all with collaborators from within our own ranks. For the sake of ourselves and our beloved city, we must be prepared to make this a noisy and visible war for our own survival.
Our ancestors who built this city demand no less from us than what they themselves invested for the good of our city and for democracy itself. Let us now go forward!
Stop the Elimination of US “Voting Rights Act!” – – A No Struggle, No Development Production! By KennySnod * *
Published on Mar 1, 2013
Stop the Elimination of US “Voting Rights Act!” — Rev. Al, Sharpton, President of National Action Network (NAN), Rev. Charles Williams II and Sr., members of Detroit chapter of NAN, The NAACP, S.E.I.U., Dr. Martin Luther King III , and many other groups came to Washington, D.C., February 27, 2013to support and challenge the hearing of the oral arguments on Shelby County, AL v. Holder case which challenges The Voting Rights Act. The conservative right wing is trying to eliminate the right to vote act from the United States Constitution. About 450 to 500 people demonstrated. – –
A No Struggle, No Development Production! By Kenny Snodgrass, Activist, Photographer, Videographer, Author of 1} From Victimization To Empowerment… www.trafford.com/07-0913 eBook available at www.ebookstore.sony.com 2} The World As I’ve Seen It! My Greatest Experience! {Photo Book} YouTube: I have over 375 Video’s, over 128,612 hits averaging 4,000 a month on my YouTube channel @ www.YouTube.com/KennySnod
Students in Durham County, South Carolina fought to affirm the right to vote during the civil rights movement. Now voting rights for Blacks are being challenged across the country.
City can collect $800 million owed by businesses, says Crittendon
From: Committee to Elect Krystal A. Crittendon
February 25, 2013
FOR IMMEDIATE RELEASE CONTACT: Phillip Brown, 313 717 5077
Detroit Mayoral Candidate Krystal Crittendon released this statement today in response to the Governor-appointed Financial Review Team’s release of findings after its 30-day review:
“The Financial Review Team’s (FRT) findings in their report concerning the City of Detroit’s financial status should come as no surprise to anyone. The bottom line: the Report provides no justification for the appointment of an emergency financial manager, especially when it makes no mention of $800 million in accounts receivable owed to the City as confirmed by State Treasurer Andy Dillon.
Andrew Daniels-El demands city officials comply with City Charter during rally Jan. 28, 2009.
The FRT had already found the City to be in severe financial distress in 2012. The specific findings contained in the report regarding whether the City was in ‘severe financial distress,’ whether the City ‘had a plan in place to address the financial distress,’ and whether the City had a likelihood of fixing its financial problems, are findings which are required to be made and contained in a financial report to the Governor by an FRT empaneled under PA 72. No one reading the report should be shocked that these findings are included.
“The FRT criticizes the City’s Charter as containing ‘restrictions and structural details that make it extremely difficult for City officials to restructure the City’s operations in any meaningful manner.’ It must be noted that the City’s Charter was required to be, and was, actually, approved by the State of Michigan before it was placed on the ballot to be voted on by Detroit voters. It is unclear as to whether this state-appointed advisory board is aware that the State signed off on the Charter before it was adopted by the residents of Detroit.
“The report also criticizes the fact that the 36th District Court has allegedly failed to collect $279.3 million in outstanding accounts receivables, of which approximately $100.9 million is owed to the City of Detroit. The report suggests that the failure to collect is somehow a failure by City of Detroit government. What the FRT apparently fails to realize is that 36th District Court operations are NOT under the control of City of Detroit government; the City is simply the Court’s funding source. The Court operations are not within the control or authority of the Mayor or the Detroit City Council. Moreover, to the extent that the report suggests that the City somehow failed to collect outstanding revenues, then so did the State of Michigan, as the report alleges that $76 million is owed to the State by 36th District Court.
Al Garrett, Pres. AFSCME Co. 25, testifies against Consent Agreement April 2, 2012, saying unions already presented package to save Detroit money. To his right are Co. 25 rep. Mel Brabson and APTE Pres. Dempsey Addison.
“The report further criticizes the City for failing to have a satisfactory plan to resolve its financial problem, as required by the Emergency Financial Manager Act. This finding is patently incorrect. The City negotiated over $150 million dollars in cost savings with the City’s labor unions in December of 2011. These savings were verified by the accounting firm the State forced the City of Detroit to retain to assist in deficit reduction measures. After the contracts were negotiated, the Governor then advised the Mayor NOT to submit these contracts to the City Council for approval. Had these contracts been approved in January of 2012, the City would have realized $150 million dollars in costs savings in 2012. The FRT’s criticism of the City regarding whether the City has a plan in place to address its financial problems and the slow progress the City has made in implementing cost-saving measures is, therefore, the fault of the State, and not the City.
Detroit Project Management Director Kriss Andrews and Mayor Dave Bing at press conference Dec. 7, 2012. Andrews, appointed under the consent agreement, can override decisions of Mayor and City Council.
“In addition, according to State Treasurer Andy Dillon, $800 million is owed to the City in accounts receivable. However, according to the City Charter, the Mayor must authorize the City Corporation Counsel to seek recovery of these dollars.
“The FRT criticized the City for failing to have a plan to address the cash crisis, or the City’s $13.6 billion in long-term liabilities. The FRT report contains a table of figures that supposedly comprise the City’s long term liabilities. The table includes lines for ‘Non-General Obligation(s),’ ‘Other Post Employment Benefits Unfunded Actuarial Liabili(ties)’ and ‘Other.’ These three categories total just under $12 billion.
City of Detroit Water Board Building.
“We know these are not ‘General Obligations, or ‘General Retirement System Unfunded Actuarial Accrued Liabilities’, or ‘Police and Fire Retirement System Liabilities’, because those figures are found on other lines in the table. If they are obligations of the Water Department, they are funded by Water Department revenues, which are not part of the City’s general revenues, nor are they debts of the City. Rather they would be debts of the Water Board, which Federal District Court Judge Cox has declared to be an entity separate and distinct from the City.
“This finding is problematic for several significant reasons. First, the long-term liabilities referenced in the report include debt which is not attributable to the general fund. Less than $2 billion is general fund debt; the rest is attributable to “other” sources, such as DWSD bond debt which is secured. Second, the State had to, and did, approve of the bond transactions which the state-appointed FRT now criticizes. Troubling is the fact that the now the State will not give the City all of the money it borrowed—$50 million is being withheld from the City in escrow. Even more troubling is the fact that the City cannot utilize the money it has received to help pay down any debt, as the State has required the City to spend millions of dollars on experts selected by the State to tell us what we already know: the City of Detroit is experiencing financial difficulty. This is actually what the FAB was appointed to tell us
Protesters denounce Gov. Snyder during Benton Harbor/St. Joseph Blossomtime Parage last year.
“Finally, the State made it necessary for the City to have to borrow money in the first place. The State eliminated revenue sharing for all Michigan cities, causing all cities, not just Detroit, to experience financial distress. Moreover, the State used Federal stimulus money to bail itself out, and now enjoys a billion and a half dollar surplus, while cities across the State are suffering.
“I urge the Governor to take all of these factors into consideration as he weighs his decision regarding the appointment of an emergency financial manager for Detroit.”
Free Detroit No Consent protest outside Snyder appearance at MOT Nov. 1, 2012.
By Joyce Moore
Former City Charter Commissioner
March 3, 2013
Joyce Moore
I am a concerned resident, Tax Payer in the City of Detroit and a Citizen of the United States. I am writing this because I can according to my unalienable rights. I don’t understand how it is that when the people voted not to have an emergency financial manager (EFM) in the City of Detroit, Governor Synder decides to ignore the will of the people.
In a recent article he indicated that he has an emergency financial manager as a candidate in mind. He also indicates in the article that the person would be in charge for 18 months. Isn’t that just about the time when the governor is up for election and Governor Snyder leaving office? What damage, what back-room commitments has he made and has to keep and most of all what has he stolen from the people in the City of Detroit? If the state owes the City millions, then why aren’t they paying? That would eliminate some of the debt burden!
Gov. Snyder after the repeal of PA 4.
We need to take a closer look at Snyder, what are his real plans and motives and what is he really in office to do? He says that he will continue to take a salary of $1.00 (one dollar) as governor but where will he get his money knowing that as a CEO he made close to two (2) million dollars a year? There needs to be a law that states that if you are elected to a public office then that is the only salary you are entitled to during your term as a public servant. This is clearly a conflict of interest.
If he implements his plan for an Emergency Financial Manager for the City of Detroit, this would be an abusive act of power as Governor of the State of Michigan. Further, the Tax Payers of the City of Detroit don’t need to continue to pay the elected officials $100,000.00 (one hundred thousand dollar) salaries, specifically; council members, mayor and city clerk as their authority would be relinquished. They are not performing the job as elected to do, “by the people and for the people.”
Attacks City Charter, unions, suits filed against PA 4
Malcolm X had the answer for Black majority cities like Harlem and Detroit
By Diane Bukowski
Analysis
February 26, 2013
Slavemaster Rick Snyder goes after Michigan’s majority-Black cities.
DETROIT – The Detroit Financial Review Team, whose members are described in a VOD article published yesterday, issued a scathing report Feb. 19, alleging a mammoth financial hurricane is descending on the city. They called for the appointment of an emergency financial manager. Michigan Gov. Rick Snyder has said he will decide the matter this week, although he has 30 days.
The announcement was covered across the globe. Detroit is the world’s largest majority-Black city outside of Africa, and also has the highest poverty rate of any major U.S. city.
During a press conference Feb. 19, State Treasurer Andy Dillon, who led the team, said it had unanimously found “there’s a financial emergency in the city, with no plan in place to correct the situation.”
State Treasurer Andy Dillon in wings to supervise Detroit’s first Financial Advisory Board meeting.
“The city has had deficits every year since 2005, masking those with long term borrowing,” Dillon said. “Under government accounting rules, long-term borrowings are deemed revenue. If this had not been done, the city’s accumulated deficit would have grown from $327 million to $937 million. Its long-term liabilities are approaching $14 billion.”
The major goal of a series of “emergency manager” acts has been to ensure that every penny of the debt cities across the country have been forced into by Wall Street before and after the global economic meltdown of 2008 gets paid. Many activists in the city have demanded a simple solution to this debt problem: declare a moratorium on Detroit’s debt, action which former Detroit Mayor Frank Murphy campaigned for during the Great Depression of the 1930’s.
The Financial Review Team “report” itself says, “The City has substantial long-term debt. As of June 30, 2012, such debt, exclusive of unfunded actuarial accrued pension liabilities and other post-employment benefits, exceeded $8.6 billion. However, upon inclusion of those other obligations, the City’s total long-term debt was $13.6 billion. (Total long-term debt is $14.99 billion depending upon whether $1.4 billion in pension system assets is, or is not, factored in the unfunded actuarial accrued liabilities.)”
Linda Willis takes part in demonstration against banks in downtown Detroit May 9, 2012.
So Dillon included in his remarks Detroit’s “unfunded actuarial accrued pension liabilities and other post-employment benefits.” As noted in VOD’s article, “Detroit Financial Review Team Represents Global Banksters,” the state of Michigan itself does not declare those items in its annual statements, leading the Institute for Truth in Accounting to admonish Michigan as well as 45 other states for deceptive accounting practices.
Dillon said the Mayor and City Council face “serious hurdles” in addressing this pre-eminent problem of paying off the banks.
Pontiac water pump station.
“These include the governance structure of the city, and impediments from the City Charter,” he said. “While we all know there is a financial strain on the city, there’s also not an ability or mechanism in place for city to address the finding of an emergency. . . For the past couple of hours, we’ve been reaching out to the Mayor, City Council members, and Lansing legislators to let them know our findings. Our relationship doesn’t have to be adversarial. Look at Pontiac and other cities [under EFM’s], we have partnerships with the managers there.”
State “partnerships” with emergency managers in Pontiac, Flint, Benton Harbor and elsewhere, all majority-Black cities, have in fact resulted in the sale of many of those cities’ major assets, in addition to lay-offs and service cutbacks, to pay off the banks.
Mayor Dave Bing earlier said he and Gov. Rick Snyder are “joined at the hip.”
Detroit Mayor Dave Bing issued a statement Feb. 20 subtly agreeing with Dillon’s allegations while saying the city does have a plan in place.
“To the contrary, my administration has worked diligently to develop and implement a restructuring plan for the City of Detroit,” Bing said. “In fact, our plan was reviewed and accepted by all stakeholders, including the State and the Financial Advisory Board [FAB]. We have the plan, but we face significant challenges executing it in a timely manner. We are hindered by several factors, including the City Charter, labor agreements, litigation, governmental structure, and a scarcity of financial and human resources. Further exploration of ways to mitigate these barriers for more timely implementation of my initiatives should be examined.”
The attack on the voter-approved Detroit City Charter, unions, and lawsuits filed by various entities against PA 4 and the consent agreement, particularly that filed by former Corporation Counsel Krystal Crittendon, is virtually a proto-fascist assault.
The state’s demands come after Bing and the City Council majority have essentially bent over and let down their pants to comply with every state directive since a “Fiscal Stability [consent] Agreement” was reached April 4, 2012.
Thousands of city workers have been laid off, three federally-funded city departments have been shut down, and a Public Lighting Authority has been approved, which will result in the dismantlement of 40 percent of the city’s lighting infrastructure. Large swaths of city-owned land are being turned over to private corporations like Hantz Farms and Pulte Homes.
The last contractor just demolished a section of buildings on the city’s near east side, claiming it was out of the generosity of their hearts. But thousands of Detroiters who were driven out of their choice riverfront, working-class homes during the Graimark debacle know that it was Pulte Homes which developed those properties.
Kenneth Whipple at FAB meeting.
Costly contracts have been let to Miller Canfield, Ernst & Young, and Miller Buckfire (Stifel) at Dillon’s demand, notwithstanding the fact that Kenneth Whipple, who sits on both the Review Team and the FAB, sits on Miller Buckfire’s advisory board as well. The Financial Review Team report specifically does not include as “revenue” the $137 million state loan to Detroit, most of which has Dillon has withheld to get his wishes. After 10 months, $80 million is still outstanding.
Massive resistance by Detroiters at City Council meetings, including 600 who turned out for the Hantz Farms hearing, has met with brutal treatment by police who have physically ejected many from Council meetings at the direction of Council President Charles Pugh. Most recently, Keith Hines of Diamond II Productions was literally dragged out. Previously, Rev. Charles Williams Sr. was attacked by three cops, and former Detroit School Board member Marie Thornton was manhandled.
KEITH HINES: WILL DETROIT BOW TO CORPORATE COLONIALISM:
With l that in mind, let’s look at some of the history leading up to this latest assault on the MAJORITY-BLACK City of Detroit.
First of all, Michigan voters overwhelmingly repealed the emergency manager law, Public Act 4, on Nov. 6. PA 4 repealed the previous emergency financial manager law, Public Act 72.
The state constitution says clearly, “Whenever a statute, or any part thereof shall be repealed by a subsequent statute, such statute, or any part thereof, so repealed, shall not be revived by the repeal of such subsequent repealing statute.” .
However, the Michigan Supreme Court refused to hear Highland Park School Board member Robert Davis’ appeal of a lower court decision which declared PA 72 was reinstated with the repeal of PA4. (This despite the fact that Supreme Court Chief Justice Robert Young cited the statute above during closing arguments on whether PA 4 should go on the ballot.)
Rev. Edward Pinkney of Benton Harbor is interviewed during protest against EM and Snyder May 7, 2011.
Now PA 72 includes a note, “THIS SECTION IS REPEALED BY ACT 436 OF 2012 EFFECTIVE MARCH 28, 2013,”eferring to the new EM law enacted by Snyder during the legislature’s lame duck session in December.
PA 72 spells out specific events which must take place to trigger a state financial review of a city’s finances. (Click on PA 72 conditions for review mcl-141-1212 to read all the circumstances.)
The Review Team identified Sections 12J and 12K as the violations in their final report, which is described as “supplemental” to the actual report, so far unseen.
Section 12J says, “The local government has violated the requirements of sections 17 to 20 of the uniform budgeting and accounting act, 1968 PA 2, MCL 141.437 to 141.440, and the state treasurer has forwarded a report of this violation to the attorney general.”
Michigan AG Bill Schuette
Noting this, VOD contacted Sara Wurfel of Michigan Gov. Rick Snyder’s office, Terry Stanton of Dillon’s office, and Joy Yearout of Attorney General Bill Schuette’s office to request a copy of that letter. So far, nothing has been produced.
Section 12K says, “The local government has failed to comply with the requirements of section 21 of the Glenn Steil state revenue sharing act of 1971, 1971 PA 140, MCL 141.921, for filing or instituting a deficit recovery plan.”
But the review team “report” says “On December 27, 2011, City officials filed an audit report that reflected a $196.6 million cumulative deficit in the General Fund, a $97.2 million cumulative deficit in the Transportation Fund, and a $17.1 million cumulative deficit in the Automobile Parking Fund. However, City officials did file, as legally required, an adequate or approved deficit elimination plan with the Department of Treasury.”
The 21-page “review” document begins with the statement, “This document is supplemental to our report of February 19, 2013, and is intended to constitute competent, material, and substantial evidence upon the whole record in support of the conclusion that a financial emergency exists within the City of Detroit.”
(VOD filed Freedom of Information Act requests for the ACTUAL review on Feb. 15, but so far, not surprisingly has heard nothing from the state within and since the five days they are given to respond under state law.)
Dillon said the FRT “poured” over Detroit’s finances.
The review team purports to have “poured” in depth over the city’s finances. However, most of the figures in the report are taken directly from city financial statements and audits. The team says they did this “pouring” during a series of meetings, for instance:
“On December 20, 2012, Review Team members Andy Dillon, Darrell Burks, Ronald E. Goldsberry, Frederick Headen, and Thomas H. McTavish conducted a series of meetings in the City of Detroit with Linda Bade, City Assessor; Charles Pugh, City Council President; Gary Brown, City Council President Pro Tem (by conference telephone); Kenneth V. Cockrel, Jr., Councilmember; Irvin Corley, Jr., Fiscal Analyst, Fiscal Analysis Division (City Council); Mary Anne Langan, Deputy Fiscal Analyst, Fiscal Analysis Division (City Council); Mark Lockridge, Deputy Audi-tor General; David Whitaker, Director, Research and Analysis Division (City Council); Jerry Pokorski, Financial Consultant; Jack Martin, Chief Financial Officer; William Andrews, Program Management Director; Cheryl Johnson, Finance Director and City Treasurer; Gaurav Malhotra and Daniel Jerneycic, of the certified public accounting firm Ernst & Young; Donald Austin, Fire Commissioner; Edsel Jenkins, Deputy Fire Commissioner; Chester Logan, Interim Police Chief; Charles Wilson, Chief of Staff; Todd Bettison, Commander, Communications Operations; Scott Hayes, Director, Technology Services Bureau; Tina Tolliver, Second Deputy Chief, Budget Operations; Patrick Aquart, Human Resources Director; and Lamont Satchel, Labor Relations Director; Dave Bing, Mayor; and Kirk Lewis, Deputy Mayor and Chief of Staff.”
FRT l to r Andy Dillon, Darrell Burks, Kenneth Whipple, Ron Goldsberry, Joseph McTavish.
WHEW! What a day! One wonders how thorough could any of those meetings have been, and why didn’t the Review Team meet with the other six members of the Detroit City Council? It appears likely that the meetings were conducted so the Review Team could give orders to the City officials involved.
Later, the following two series of meetings took place which included representatives of Miller Buckfire, which counts Review Team and FAB member KennethWhipple among its advisory board members. Whipple was even present in the Feb. 1 meeting.
Kenneth Buckfire at gala event, where much was likely “poured.”
“On January 16, 2013, Review Team members Andy Dillon (by conference telephone), Darrell Burks, Ronald E. Goldsberry, Frederick Headen, and Thomas McTavish (by conference telephone), met with William Andrews, Program Management Director; Jack Martin, Chief Financial Officer; David Brayshaw, of First Southwest Company; Lamont Satchel, Labor Relations Director; Suzanne Taranto, Milliman Company; Cheryl Johnson, Finance Director and City Treasurer; Donita Crumpler, Manager, Debt Management Division; Gaurav Malhotra, of the certified public accounting firm Ernst & Young; and Kenneth A. Buckfire, of Miller Buckfire and Company.
James Doak of Miller Buckfire
“On February 1, 2013, Review Team members Andy Dillon, Ronald E. Goldsberry, Frederick Headen, Thomas McTavish (by conference telephone), and Kenneth Whipple met with Lamont Satchel, Labor Relations Director; William Andrews, Program Management Director; Jan Anderson, Program Management Deputy Director; Jack Martin, Chief Financial Officer; Gaurav Malhotra, Daniel Jerneycic, and Juan Santambrogio, of the certified public accounting firm Ernst & Young, and James Doak, of Miller Buckfire and Company.
So much for impartiality and thoroughness. And from where did First Southwest pop up?
Bloomberg Business says, “First Southwest Company (FSC) is an investment banking and financial advisory firm. The firm provides private placement, underwriting of public offerings of debt or equity securities, mergers and acquisition, divesture, debt refinancing, and valuation advisory services. . . . FSC was founded in 1946 and is headquartered in Dallas, Texas. It has more than 20 offices in United States. First Southwest Company operates as a subsidiary of PlainsCapital Bank.”
First Southwest is also a founding member of the Bond Dealers Association. Getting ready to issue some more debt and slurp up some huge interest rates, are we? Thought Detroit’s problem was that it already has too much debt.
“Headquartered in Dallas, PlainsCapital Corporation is one of the largest independent financial institutions in the U.S. with 330 locations in 42 states and over 3,700 employees,” says Wikipedia. But wait, other reports say Hilltop Holdings just acquired PlainsCapital.
So where’s the cowboy with the ten-gallon hat associated with this deal, riding in from Dallas, and what does he have to do with the interests of the people of Detroit? We’ll wait and see. It is more than evident that all these big fish gobbling up smaller fish are intent on gobbling up Detroit and its people as well, by any means necessary.
Let’s conclude by listening to Malcolm X’s version of “By Any Means Necessary,” given to the people of Harlem, another Black city like Detroit.
