VOICE OF DETROIT: The city's independent newspaper, unbossed and unbought

Public workers protest Bing and council attacks Nov. 17, 2011

Are Snyder, Bing, Council and EY conspiring to get concessions or EM?

PA 4 (EM law) may be frozen by mid-December, as referendum petition nears signature goal

Council handing out tax abatements as it demands 2300 lay-offs

By Diane Bukowski

November 26, 2011

DETROIT – Are Mayor Dave Bing and the City Council manufacturing an economic crisis in collusion with Ernst & Young as well as Michigan Gov. Rick Snyder? Are they trying to force “sacrifice” out of the city’s workers and poor while allowing the city’s corporations and banks to make hay while the sun shines?

VOD reader S. Mack said it all in a recent on-line comment. 

Nov. 17 protester

“A Forensic Audit is needed to catch these crooks from the past to the present administrations,” Mack noted. “We need an honest outsider to do the Audit. It’s not hard to see things are purposely in place to continue to give away assets and to privatize, regionalize and corporatize the city.  

“[It is] also population control to remove one group for another, [and] an attack on the poor, a cause and effect to raise the poverty numbers in this City, while they give the banks,  corporations, casinos and big businesses a pass. Tax abatements should be a thing of the past. There are businesses who haven’t paid taxes in thirty years or more, rich taxpayers who don’t live in the city. Millions of federal dollars are sent back instead of being utilized to build economic wealth for the city. You gotta believe things are being done deliberately.” 

PA 4 could be frozen by mid-December 

The recent sequence of events raises the possibility that there is a deliberate effort to put an EM over Detroit, or at least to bleed concessions out of the unions, before Public Act 4 is frozen. That could happen as early as mid-December. 

In a recent release, Michigan Forward said regarding its campaign for a referendum to repeal PA4, “Stand Up for Democracy is announcing it has verified more than half of the 250,000 signatures the group wants to collect. Only 161,304 valid signatures are needed to freeze the emergency manager law and put it on the November 2012 general election ballot.” 

Michigan Forward is a state-wide coalition of labor, community and religious leaders. Its founder Brandon Jessup said they expect to have enough signatures by mid-December.  

Michigan’s Constitution, Art. II, Sec. 9 says, “No law as to which the power of referendum properly has been invoked shall be effective thereafter unless approved by a majority of the electors voting thereon at the next general election.” 

(Click on http://voiceofdetroit.net/2011/07/07/labor-community-gear-up-to-deliver-fatal-blow-to-pa-4/ to read previous VOD article on campaign to defeat PA 4.) 

Snyder becomes bad cop 

Snyder turns bad cop

Snyder appears rather concerned. After Bing timorously raised Councilwoman JoAnn Watson’s demand that the state repay $220 million it owes to Detroit, the governor suddenly turned from good cop, claiming he did not want an EM for Detroit, into bad cop. 

“Based on the mayor’s remarks … and the severity of the situation he described, we anticipate he will be submitting a request for preliminary financial review in the near future,” Snyder said. 

Bing said that he has been in constant consultation with Snyder on the city’s finances since April and that therefore a preliminary review, the first step in naming an EM, is not needed. So does he plan to skip straight to the second step and ask for one?  The daily media is saying that folks like the current EM’s of Benton Harbor, Pontiac, and Ecorse are under consideration. A city hall insider told VOD there are also local names in the pot. 

A union official who asked not to be named told VOD that his department is paying bills from private corporations within two to three days in an apparent effort to spend down as much money as possible, to verify the claims of a pending cash shortfall made by Bing, the Council, and Ernst & Young. 

(Go to http://voiceofdetroit.net/2011/11/15/ernst-young-helped-lehman-bros-cook-books-say-n-y-n-j-lawsuits/ and http://voiceofdetroit.net/2011/11/21/city%e2%80%99s-top-criminals-ernst-young-cook-the-books/ to read VOD’s previous articles exposing this criminal firm.) 

Frantic meetings Thanksgiving week, turkey and shopping 24^th and 25th 

Council ate turkey, called for 2300 layoffs

Bing, the Council, and the city’s unions met frantically during Thanksgiving week, claiming that an EM would be named any moment. 

The situation could not have been so dire, however. Mayor and Council went home Thursday and Friday to consume their turkey, and take advantage of “Black Friday.” Council President Charles Pugh was spotted by a local TV station shopping his well-heeled self off at an upscale store Friday. 

Carl Bentley, Saunteel Jenkins

Perhaps Councilwoman Saunteel Jenkins, who has proposed that city retirees give up their 13^th check, was busy snuggling with her presumed squeeze Carl Bentley while filling up on Thanksgiving goodies to add to her steadily increasing girth. The two have been photographed together at numerous society functions. 

Bentley works for Strategic Staffing Solutions, a city and county contractor now under investigation by the feds for its role in the Wayne County Business Development Corporation scandal.

Council demands 2300 lay-offs, based on secret Ernst & Young meeting 

The City Council sank to new depths of depravity in the sessions it conducted during the first three days of the week. On Nov. 22, they spent the afternoon debating whether a demand for 2300 city worker lay-offs should be number one on a list to present to Mayor Bing, or whether the state’s $220 million debt to the city should go first. 

Ernst & Young gets cooking the books award of the 21st century

In the end, NO ONE would give a definitive “NO” vote against presenting the 2300 lay-offs as one option, and only JoAnn Watson appeared to believe that the demand for the state debt repayment was serious. 

They also disclosed that actual representatives of Ernst & Young were present during their secret meeting they held with Bing about the city’s finances Oct. 26, in violation of the Open Meetings Act. 

VOD is consulting with the On-Line Media Network to obtain legal assistance in filing suit against the Council for holding that meeting. Two other suits are contemplated regarding a closed Council session on the $750,000 DTE Energy contract to repair 500 streetlights, and another on revamping the city’s Privatization Ordinance. 

Violation of the Open Meetings Act under state law is a criminal misdemeanor. (Where’s Wayne County Prosecutor Kym Worthy when we need her?) 

Happy Thanksgiving! Council hands out tax abatements, not turkeys 

Prior to discussing how to bleed city workers, the Council took care of other business, happily handing out holiday gifts in the form of tax abatements. After all, companies like Covanta, witn about $1.7 billion expected in 2011 revenues, can certainly afford to buy their own turkeys. 

Marchers demand clean energy in protest outside Detroit Renewable incinerator

The Council voted 5-4 in favor of a $4.1 million brownfield development tax abatement for Covanta subsidiary Detroit Renewable Power, which operates the Detroit and Hamtramck incinerators. The incinerators are reviled by environmentalists and hundreds of people who live in the path of their fumes. Detroit Renewable Power was recently cited by the state for several environmental infractions, as several of the many speakers against the abatement pointed out. 

“Covanta Energy is one of the world’s largest owners and operators of infrastructure for the conversion of waste-to energy, as well as other waste disposal and renewable energy production businesses,” the company says on its website. “Covanta operates and/or has ownership positions in 44 energy-from-waste facilities, primarily located in North America, and 20 additional energy generation facilities, including other renewable energy production facilities in North America. “

The company has also been cited for numerous  environmental infractions and labor violations.

The five Council members voting for Covanta  were  Black Friday shopper Charles Pugh, Bentley squeeze Saunteel Jenkins (who got $1,000 from Covanta during her campaign), Gary Brown, Andre Spivey and James Tate. Voting against the tax abatement were Council members JoAnn Watson, Brenda Jones, Kwame Kenyatta, and Ken Cockrel, Jr. 

Big Tax Break for Detroit Incinerator: MyFoxDETROIT.com

The Council additionally voted 8-1 to give Wayne County Executive Robert Ficano a zoning change so he could build his new county jail.  

Walbridge and EDGE are prominently displayed on Wayne County Jail sign on Gratiot and St. Antoine

Councilwoman Watson thought to ask, “Who’s the contractor?” knowing it is Walbridge Aldinger. The FBI has also subpoenaed records from that company, whose CEO John Rakolta sits on the Wayne County Business Development Corporation board and on the EDGE non-profit board.  He is an ardent Snyder supporter, and was a major fundraiser for the 2004 Bush campaign. 

Over the past few weeks, the Council has also voted to give 10 and 15 year Renaissance Zone tax credit extensions to the James Group International/OJ Land Development and 1208 Woodward, LLC, in exchange for a guarantee of —ELEVEN JOBS. 

Snyder, Bing, Council, Ernst & Young

Meanwhile, the council approved city revenue INCREASES of over $2.7 million from the state, casinos and elsewhere, but said they would be used in large part to pay for the Ernst & Young contract. (Click on Detroit revenue increase slated for Ernst Young.) 

So, the question becomes—is there a crisis or not?  Previously Wall Street screamed crisis at Detroit Mayor Kwame Kilpatrick over an alleged $300 million deficit in 2005. It sent its minions from Standard and Poors and Fitch Ratings directly to the Council table to demand that the city borrow $1.2 BILLION in pension obligation certificates.  The Mayor and council caved. 

When the city was in danger of defaulting on same, in 2009, Mayor Ken Cockrel, Jr. agreed to turn ALL of the city’s revenue-sharing and casino tax income over to a bank trustee so he could chop off what UBS Financial Services considered sufficient to stave off default on the debt Wall Street demanded. 

What other ingenious and eventually catastrophic solution does Wall Street have in mind for Detroit now?

_______________________________________________________________

Moratorium NOW! plans to take up issue of Emergency Manager attack on Detroit

Moratorium Now! Coalition to Stop Foreclosures, Evictions & Utility Shut-offs — Organizing Meeting 

Monday, November 28, 2011, 7:00 pm

5920 Second Ave., Detroit, MI 48202 (at Antoinette, just north of Wayne State University) 

We will be discussing actions in coordination with Occupy Detroit in support of the December 6 National Day of Action Against Foreclosures. 

We will also take up the fight against the imposition of an Emergency Financial Manager on the City of Detroit.

ANSWER Coalition protests during Occupy LA

‘Occupy LA under attack,’ ‘The people can stop the eviction’

Sign petition to stop eviction Click here; call Mayor Antonio Villaraigosa at (213)978-0600,

Occupy LA website: http://occupylosangeles.org/

By Deborah Dupre

Human Rights Examiner

November 26, 2011 – Like this? Subscribe to get instant updates.

After the LA mayor and city officials pledged to evict Occupy LA human rights defenders from their peaceful 500 tent encampment still at City Hall, in preparation to resist the 12:01 a.m. Monday morning police event, aside from purchasing gas masks, the nation’s largest grassroots human rights organization, ANSWER Coalition late Sunday afternoon has urged thousands of its members and supporters to be at the City Hall at 11 p.m. Sunday night through Monday to and to take a pledge to stop the eviction. 

“Occupy LA is under attack,” the ANSWER Coalition says in its written statement sent late Saturday.

Click on http://occupylosangeles.org/?q=nov2011response to read Occupy LA General Assembly’s response to the mayor.

But this morning, there were no signs of attack, although the thousands of rights defenders brace for an interesting time after the clock strikes midnight Sunday when the eviction and police involvement is to occur. 

“All was quiet before dawn at Los Angeles City Hall, where “Occupy” demonstrators have been camping since Oct. 1 and are now under threat of arrest if they don’t clear out after noon Monday,” reported the Daily News LA Sunday morning. 

There was “no sign that the estimated 500 tents had diminished.” 

 

More than one thousand protesters of Occupy LA hit the streets in solidarity with Occupy Wall Street. They occupied the financial district of Los Angeles and police arrested several of the protesters. RT correspondent Ramon Galindo gives us the latest of the national day of action in LA Nov. 17.

The mayor and city officials pledged to evict Occupy LA from the encampment at City Hall lawn at 12:01 am this coming Monday morning. 

“In a press conference yesterday, Mayor Villaraigosa and LAPD Chief Charlie Beck called the ongoing protest ‘unsustainable’ and gave notice of their intention to have Occupy LA dismantled,” reported ANSWER Coalition. 

The Daily News reported the mayor wants the people off of City Hall’s “manicured lawns” for “safety reasons.” 

But ANSWER Coalition, the metropolitan’s large coalition of human rights defender organizations says they need thousands of recruits to be there late Sunday night to stop the eviction. 

“We cannot let this happen,” ANSWER says in its statement urging members and supporters to be there Sunday night through the Monday morning eviction deadline. 

“Come by 11 p.m. and be prepared to stay to help stop the eviction. Bring your friends, family and everyone you know, along with any signs or banners you have or wish to make to support Occupy LA. 

“If thousands of people come out on Sunday to defend Occupy LA, we will send a strong message to the ruling elite and politicians who desperately want the Occupy movement to end.”

According to ANSWER, despite city officials claiming to support Occupy LA and their passing a resolution to that effect, “they do not and never have” supported it.

“The pending eviction attempt is part of a wave of nationally coordinated state repression against the Occupy movement as a whole.

The blossoming of a new, growing movement of young people, students, workers and unemployed against the wealthiest 1% has challenged the profit-based system that feeds on banker and corporate greed.

Wall Street and the ruling elite in all cities want the Occupy movement gone completely, yet along with others, Occupy LA still stands.”

ANSWER’s rationale is that the people stopped New York City Mayor Bloomberg when he first tried to kick Occupy Wall Street protesters from Zucotti Park. 

“Five thousand people answered the call and defended the park, forcing the mayor and city to back down. The same thing can happen right here in Los Angeles,” it says. 

“Now is the time to take a stand and defend the Occupy LA encampment, which is comprised of peaceful protesters who are fed up with the rule of the richest banks and billion-dollar corporations–the 1%. 

“ANSWER, along with the Occupy LA participants, clergy and other community groups, will be there to support Occupy LA, stop the eviction, and make sure City Hall remains occupied.” 

The group is urging people to register for email updates and check the AnswerLA.org website and Facebook page for up to the minute reports. 

At least one person admitted to having bought a gas mask in preparation for peaceful resistance Monday morning. 

“Click here to pledge to “Take a stand” to defend the Occupy LA encampment,” ANSWER urges.

Suggested by the author:

• Mayor, Police: Occupy LA ‘will not go quietly’ Sunday midnight
• What is human rights group called ANSWER? (Video)
• Rights workers to ICC: Investigate officials for 1000s Mexicans tortured, killed
• Threatened Occupy LA counters mayor, buys gas masks
• Police turn Occupy Oakland’s Thanksgiving into potty riotContinue reading on Examiner.com Breaking News: 1000s rights defenders recruited to stop Occupy LA police attack – National Human Rights | Examiner.com http://www.examiner.com/human-rights-in-national/breaking-news-1000s-rights-defenders-recruited-to-stop-occupy-la-police-attack?CID=examiner_alerts_article#ixzz1eurUJExM

OCCUPY LA LIVESTREAM

Workers demonstrate against Bing’s attacks on pension rights and other cutbacks outside his State of the City address April 12, 2011

•  13th check, other pension rights at stake;
• Public hearing Tues. Nov. 29 9:30 a.m. CAYMC, Council chambers

By Diane Bukowski 

DETROIT – Detroit Mayor Dave Bing and the City Council are bidding HAPPY HOLIDAYS and thanks to city retirees for their years of service, by trying to snatch their annual “13^th check,” which many have counted on for 20 years to pay past due bills or  buy Xmas gifts for their families. 

A proposed ordinance amending the City Code would also redefine and limit excess earnings on Detroit General Retirement System (DGRS) investments, from which the check is provided, among other strictures placed on the powers of DGRS trustees to distribute funds to retirees. 

Protest last year against Bing cutbacks

Council will hold a public hearing on the ordinance, introduced and supported by Council member Saunteel Jenkins, on Tues. Nov. 29 at 9:30 a.m. It plans to vote on the ordinance later that morning. (Click on Proposed pension ordinance for summary of ordinance.) 

“These kinds  of changes in pension plans are mandatory subjects of bargaining, and would have to be negotiated and agreed to by the parties,” John Riehl told council Nov. 22.   

Riehl, a DGRS trustee and president of Local 207 of the American Federation of State, County and Municipal Employees, spoke at a hearing which had to be rescheduled to Nov. 29 because notice of the hearing did not include mention of the 13^th check. 

He noted that the Michigan Supreme Court declared pension changes a mandatory subject of bargaining as part of their decision in DPOA  v. Detroit, 391 Mich 44 (1974). 

John Riehl addresses council during rally against water takeover Jan. 27, 2011

Bing first raised the idea of taking the 13^th check and reducing city contributions to the pension systems during his April 12 budget address, after which he met with system trustees. 

“This is a double whammy on the people” Riehl said, referring to an agreement made during that meeting. “We already agreed to allow the city to spread out their payments into the system over a longer period of time.” 

William Williams is a city bus driver and officer of Amalgamated Transit Union Div. 26. 

“I’ve been in this city all my life,” he told the council. “I’m one of those who stayed when all my friends were moving to Houston and Dallas. It almost brings me to tears to see the city try to fix its condition on the workers’ backs. We’ve given and we’ve given and we have no more to give.” 

Cornell Squires

Cornell Squires is a former City of Detroit EMS technician, retiree and community activist.

He told VOD, “American Axle got city tax abatements but went overseas,” he said.  “The Downtown Development Authority and DTE don’t pay taxes.  Tell Illitch and all those people running the Fox Theater, Comerica Park,  and the casinos, making money every day to come and contribute, not just the workers. It was the people and city workers who  kept Detroit going. They’re building up ‘Midtown,’ but there’s no development in the neighborhoods. There are 72.000 vacant parcels. People could come together like on Angels’ Night if they had the money, they could take all the vacant buildings, turn them into gym shoe plants and other factories and provide jobs for city residents who pay taxes.”

DDOT bus driver William Williams talke with City Council members James Tate and Brenda Jones after bus drivers' walk-out Nov. 4, 2011

The Detroit Police and Fire Retirement System does not provide a 13^th check at this time, according to a published statement by Paul Stewart, Vice-President of the Detroit Police Officers Association (DPOA). He notes, “The DPOA continually tries to obtain such a benefit by negotiations with the City of Detroit. However, so far we have not yet accomplished such a benefit, but we will continue to do so.” 

Jenkins told Detroit’s Channel Four News on Nov. 9, “There’s one study done that said if we had not distributed 13th checks there would be about $1.9 billion dollars more in the pension system today.” 

Saunteel Jenkins, Carl Bentley of Strategic Staffing Solutions, a city and county contractor, at Oakland County Executive L Brooks Patterson's birthday party; they are evidently an "item" as they are featured as a couple in numerous society photos

However, Bing and the Council are not worried about putting more money in the pension system, which is quite solvent. A previous effort to eliminate the 13^th check, during the administration of Mayor Kwame Kilpatrick, was intended to funnel the pension systems’ excess earnings back into the City of Detroit’s general fund. Voters defeated the ballot proposal resoundingly. 

Before her election, Jenkins told The Michigan Citizen, which endorsed her, James Tate and Andre Spivey, that although she supported privatization “as a last resort,” she respected the role of labor negotiations. (For MC story, click on http://michigancitizen.com/detroit-city-council-endorsements-p7920-1.htm.)

During his first term, Bing attempted to sabotage both of the city’s pension systems, worth $6 billion. He supported four bills in the state legislature that would have merged the systems into the Michigan Employee Retirees System (MERS), a state-wide system, whose board has no Detroit representatives and is all-white. 

Highland Park retirees reported that when MERS took their system over, they frequently failed to get their monthly checks on time. 

Municipal Employees' Retirement System (MERS) board membes

Council members in office at that time passed a resolution against the takeover. Bing’s  effort later failed because the bills were introduced prior to the Rick Snyder and Republican takeover of state government. 

Public Act 4, however, contains a provision that calls for a mandatory takeover of municipal pension systems if their funding level falls below 80 percent, among other attacks on public pensions.

Both Detroit systems are funded well above that mark, but the systems filed a lawsuit to overturn PA 4 in April (click on http://voiceofdetroit.net/2011/05/03/detroit-pension-systems-file-federal-suit-against-pa-4-broad-coalition-also-expects-to-take-legal-action/ ) 

Unfortunately, the suit was assigned to U.S. District Court Judge Sean Cox, a rabid Federalist right-winger and supporter of the Snyder agenda. He dismissed the suit Sept. 29, 2011, but the systems appealed their case to the U.S. Sixth Circuit Court of Appeals on Oct. 26 of this year.

Please RSVP to attend, online at: bupfilms@yahoo.com , http://www.bupfilms.org  or facebook.com/bupfilmsinc

Gov. Snyder is threatening Detroit with an emergency manager while banks rake in $35 billion in last three months; he has already cut tens of thousands of Michigan families off public assistance. MAKE THE BANKS PAY!

Fewer institutions are on ‘problem’ list

Nov. 23, 2011  

 By Derek Kravitz

Associated Press

WASHINGTON — Bank earnings rose over the summer to their highest level in more than four years, while the number of troubled banks fell for the second straight quarter, federal regulators reported Tuesday. 

The Federal Deposit Insurance Corp. said the banking industry earned $35.3 billion in the July-September quarter. That’s up from $23.8 billion in the same period last year.

More than 60% of banks reported improved earnings. 

Happy Bankster

The better earnings and fewer troubled banks suggest that the industry is steadily improving from the depths of the 2008 financial crisis. 

“Bank balance sheets are stronger in a number of ways, and the industry is generally profitable, but the recovery is by no means complete,” said Martin Gruenberg, FDIC’s acting chairman.

The FDIC also said there were 844 banks on its confidential “problem” list in the quarter, or roughly 11.5% of all federally insured banks. 

That was down from 865 in the April-June period, which was the first quarter in five years to show a decline. 

Banks with assets exceeding $10 billion drove the bulk of the earnings growth. 

They made up 1.4% of all banks but accounted for about $29.8 billion of the industry’s earnings in thethird quarter. 

Those are the largest banks, such as Bank of America, Citigroup, JPMorgan Chase and Wells Fargo. Most of these banks have recovered with help from federal bailout money and record-low borrowing rates.

FDIC officials say the bulk of the gains were because banks, especially credit card companies, set aside less money for potential losses. 

In the July-September period, banks put aside $18.6 billion. That’s the lowest amount in four years.

But the industry continues to struggle with flat growth in loans. Banks’ loan balances increased $21.8 billion in the third quarter. 

That was a modest gain. But it marked the second-straight quarter in three years that balances have grown, the FDIC said.