May 7, 2014
By Johathan Oosling
Lansing, MI -- Michigan lawmakers (click here) may use the state's "rainy day fund" to pour $195 million into Detroit as part of a "grand bargain" designed to speed up the city's exit from bankruptcy and minimize pension cuts for retirees.
A 10-bill package set to be introduced Thursday in the Michigan House would tap the Counter Cyclical Budget and Economic Stabilization Fund for a $194.8 million lump sum payment to Detroit pensions.
The fund would be replenished with tobacco settlement revenue over the next 20 years, meaning the state would not pay any financing costs.
"That's what we'll come out of the chute with," said state Rep. John Walsh (R-Livonia). "Like any bill, it'll be up to what we hear from the public and our colleagues. But it makes the most sense. The money is available. I would consider this an appropriate use of the rainy day fund."
Michigan Gov. Rick Snyder has emphasized rainy day savings since taking office in 2011, but his office has indicated that he would be open to using the fund for the Detroit settlement, which he strongly supports. The rainy day fund balance is projected to top $580 million by the end of the current fiscal year....
Up to the election of Rick Snyder to the Governorship the Rainy Day Fund was used to make up for budget falls. In the absence of state help, Michigan towns declared bankruptcy under Snyder's emergency managers. It has been disastrous. Most of the communities receiving an emergency manager are minority communities. The elected officials were removed from decision making and sales of any assets began. This tragedy in Flint is directly because of the harsh handling of it's emergency manager.
By Johathan Oosling
Lansing, MI -- Michigan lawmakers (click here) may use the state's "rainy day fund" to pour $195 million into Detroit as part of a "grand bargain" designed to speed up the city's exit from bankruptcy and minimize pension cuts for retirees.
A 10-bill package set to be introduced Thursday in the Michigan House would tap the Counter Cyclical Budget and Economic Stabilization Fund for a $194.8 million lump sum payment to Detroit pensions.
The fund would be replenished with tobacco settlement revenue over the next 20 years, meaning the state would not pay any financing costs.
"That's what we'll come out of the chute with," said state Rep. John Walsh (R-Livonia). "Like any bill, it'll be up to what we hear from the public and our colleagues. But it makes the most sense. The money is available. I would consider this an appropriate use of the rainy day fund."
Michigan Gov. Rick Snyder has emphasized rainy day savings since taking office in 2011, but his office has indicated that he would be open to using the fund for the Detroit settlement, which he strongly supports. The rainy day fund balance is projected to top $580 million by the end of the current fiscal year....
Up to the election of Rick Snyder to the Governorship the Rainy Day Fund was used to make up for budget falls. In the absence of state help, Michigan towns declared bankruptcy under Snyder's emergency managers. It has been disastrous. Most of the communities receiving an emergency manager are minority communities. The elected officials were removed from decision making and sales of any assets began. This tragedy in Flint is directly because of the harsh handling of it's emergency manager.
The Counter Cyclical Budget and Economic Stabilization Fund, commonly referred to as the Budget Stabilization Fund or the "Rainy Day Fund," was created in 1977 to serve as Michigan's "savings" account and to assist in stabilizing revenues during periods of economic recession. The fund provides a safeguard to protect critical programs for Michigan's citizens when the state experiences an economic downturn. The fund is accounted for as a subfund of the General Fund.The Rainy Day Fund had a balance of $386.2 million as of September 30, 2014. Below is a 10-year history of balances in the Rainy Day Fund:...
I understand the Detroit Free Press is receiving emails from the Governor regarding Flint, but, there is way to know if the release is all inclusive unless it is by order of a judge. I think it is important the Governor pass on the emails. But, in all honesty what can they possibly say?
I understand the Detroit Free Press is receiving emails from the Governor regarding Flint, but, there is way to know if the release is all inclusive unless it is by order of a judge. I think it is important the Governor pass on the emails. But, in all honesty what can they possibly say?
There is a lot of old infrastructure in Michigan known to have severe winters. When emergency managers took over the cities they removed assets, but, never provided solutions to problems.
Janury 18, 2016
By Paul Egan
Lansing — Michigan Gov. Rick Snyder (click here) conceded in a Monday interview he's made mistakes in his handling of the Flint water crisis, which he called "a disaster" that reflects badly on him and his administration. But he also blamed entrenched bureaucrats for the lead poisoning and rejected suggestions he resign....
It seems to me the Snyder administration never cared about the people so much as removing assets and providing a platform for private industry to exploit the cities most effected by low employment.
Flint still has an 8.8 unemployment rate. (click here) The recovery act helped, but, there hasn't been much difference since this radical approach by Governor Snyder. Graph to left (click here).
Janury 18, 2016
By Paul Egan
Lansing — Michigan Gov. Rick Snyder (click here) conceded in a Monday interview he's made mistakes in his handling of the Flint water crisis, which he called "a disaster" that reflects badly on him and his administration. But he also blamed entrenched bureaucrats for the lead poisoning and rejected suggestions he resign....
It seems to me the Snyder administration never cared about the people so much as removing assets and providing a platform for private industry to exploit the cities most effected by low employment.
Flint still has an 8.8 unemployment rate. (click here) The recovery act helped, but, there hasn't been much difference since this radical approach by Governor Snyder. Graph to left (click here).
