EFM: Snyder to name Detroit emergency financial manager

[Tig3rzhark]

It's finally time. At 12pm today, Gov. Rick Synder will announce the action that will be taken in concern to Detroit's financial crisis.

We should have done this a long time ago.

I'm a Detroiter, and I'm saying this. I have no sympathy for what's going to happen to the mayor, and the city council. Should they decide to fight the action, they do so in their own personal interest, not in the interest of the city of Detroit.

Yesterday, a kid was robbed of his shoes and had to walk home barefooted in the snow. I've had enough of the city government's incompetence. I'm sure that most, if not everyone on this forum will agree with me.

http://www.freep.com/article/20130301/COL06/303010151/Tom-Walsh-Time-has-come-for-Snyder-to-step-in?odyssey=tab|topnews|text|FRONTPAGE

[RapBrown]

Snyders man will be governing people who have no right to vote. On top of that in not one city has a EFM worked. Now you have robbery and Jim Crow rolled into one, great idea when do we start?

[TKshreve]

LOL - Welcome to the forum!

I see your point. Status Quo should be fine I guess. Call off the dogs Snyder. Things are going to be ok. They'll get their house in order....... this time.

LOL.

[Honky Tonk]

Snyders man will be governing people who have no right to vote. On top of that in not one city has a EFM worked. Now you have robbery and Jim Crow rolled into one, great idea when do we start?

I sure as hell didn't vote for this incompetent mess.

[hamtown mike]

Should they decide to fight the action, they do so in their own personal interest, not in the interest of the city of Detroit.

Unfortunately should they decide to fight, and they will, they will be spending taxpayer money to do so. Council has already consulted with a slew of lawyers and I'm sure the lawyers are doing pro-bono work. Council is fighting hard to save their power and influence. Imagine what could have been accomplished if they fought this hard for the city. Just stay down Luke. Just stay down.

[Honky Tonk]

Unfortunately should they decide to fight, and they will, they will be spending taxpayer money to do so. Council has already consulted with a slew of lawyers and I'm sure the lawyers are doing pro-bono work. Council is fighting hard to save their power and influence. Imagine what could have been accomplished if they fought this hard for the city. Just stay down Luke. Just stay down.

They can always cut more City services and employee pay to make up for the deficit.

[GPCharles]

Last I checked, residents of the City of Detroit were able to vote for state representative, state senator and governor.

[Shollin]

Last I checked, residents of the City of Detroit were able to vote for state representative, state senator and governor.

Last I checked state voters voted to repeal the emergency financial manager law.

[Shollin]

http://www.freep.com/article/2013030...text|FRONTPAGE

It's finally time. At 12pm today, Gov. Rick Synder will announce the action that will be taken in concern to Detroit's financial crisis.

We should have done this a long time ago.

I'm a Detroiter, and I'm saying this. I have no sympathy for what's going to happen to the mayor, and the city council. Should they decide to fight the action, they do so in their own personal interest, not in the interest of the city of Detroit.

Yesterday, a kid was robbed of his shoes and had to walk home barefooted in the snow. I've had enough of the city government's incompetence. I'm sure that most, if not everyone on this forum will agree with me.

What is the mayor supposed to do? Put an armed guard at every bus stop in the city? A financial manager should be managing the finances, not the police department.

[Honky Tonk]

Last I checked state voters voted to repeal the emergency financial manager law.

Please feel free to offer me another viable solution, other then handing over more funding that'll never be accounted for.

[313WX]

They can always cut more City services and employee pay to make up for the deficit.

What makes you and the OP think the EFM won't do the same thing triple fold?

Be careful what you wish for.

What's funny is Detroit will probably still end up in bankruptcy court anyway when it's all said and done. The EFM has no legal basis to tackle the long-term debt, even under the questionable state law.

[RapBrown]

I know Democracy is inconvenient but a lot of time courts do use it in their decisions. This is absolutely undemocratic and racist. This ahole has been slashing through schools and cities since he got into office, he's ruined the film industry here and never created any jobs. I'd keep this thing tied up in court until his one term is over.

[Shollin]

Please feel free to offer me another viable solution, other then handing over more funding that'll never be accounted for.

Bankruptcy. Even a federal bankruptcy judge doesn't have as much power as an EFM. I don't understand why an EFM needs to control more than just finances. Besides, it's not like Pontiac or Flint are better off.

[Meddle]

Everybody needs to go. Mayor, council and any departments heads they've appointed or recommended. Total cleaning of the outhouse.

All of them, spare no one.

Require an independent comprehensive audit of all city operated accounts and maybe at least some of the crooks that caused the mess will be jailed.

[Packman41]

Yes, no problem here. Nothing to see, just go about your business as usual – move along.

Meanwhile, from the Financial Review Team http://www.freep.com/assets/freep/pdf/C4201112219.PDF

Annual [[Short-Term) Deficits
Detroit has an inadequate budget process that produced the following “Annual Deficits” [[Year, then Actual Deficit in Millions): 2005 [[$115.4), 2006 [[$173.7), 2007 [[$115.6), 2008 [[$219.2), 2009 [[$331.9), 2010 [[$155.7), 2011 [[$196.6), 2012 [[$326.6). Or, over the 8 year time period an average Annual Deficit of $214.3 Million, per year.

Long-Term Debts
As of June 30, 2012 Long-Term debt is $14.99 Billion. Ok, Ok, some of that is really, really long-term debt or Water & Sewer debt and that will magically disappear with pixie-dust made powdered unicorn horn. But, the fact remains that $2.0 Billion of that debt is near-term and comes due within 5 [[short) years.

What to do.

1. Stop anymore long-term borrowing. Besides, who would buy Detroit bonds that are now junk rated or unrateable? Don’t count on any additional State guarantees.
2. Cut the Annual Deficit to ZERO
3. Also create an operating surplus of $400 million a year for 5 years in order pay off that near-term bond debt of $2.0 billion.

Right, no E[[F)M or Bankruptcy Judge needed here. The City Council, Mayor and a few community activists can handle all this. [[Sarcasm off).

[Shollin]

So who is denying there is a financial issue in the city?

[RapBrown]

So who is denying there is a financial issue in the city?

No one's arguing that, it's only important to make them bleed even though the process being used has never worked. It's also important that since the voters dismissed this method in Nov we now take away their voice and railroad our views through!

[TKshreve]

Everybody needs to go. Mayor, council and any departments heads they've appointed or recommended. Total cleaning of the outhouse.

All of them, spare no one.

Require an independent comprehensive audit of all city operated accounts and maybe at least some of the crooks that caused the mess will be jailed.

This.

Detroit has to start over. Fresh faces. Fresh motivation.

[Shollin]

People have been blaming the mayor since Coleman Young. What can you do when the city is in poverty, half don't pay taxes, and the citizens rob and kill each other? What can a mayor do? Coleman Young wasn't able to change anything. Dennis Archer wasn't able to. Kwame wasn't able to. Bing isn't able to. Just bring in new faces and watch the cycle repeat.

[michimoby]

Bankruptcy. Even a federal bankruptcy judge doesn't have as much power as an EFM. I don't understand why an EFM needs to control more than just finances. Besides, it's not like Pontiac or Flint are better off.

You're assuming that Pontiac would be in better shape without an EFM. You're assuming that DPS would be in better shape without an EFM.

The goddamn plane has crashed into the mountain, and what we need is someone to sift through the wreckage and salvage what's left. At the end of the day, though...there was still a plane crash.

[Shollin]

You're assuming that Pontiac would be in better shape without an EFM. You're assuming that DPS would be in better shape without an EFM.

The goddamn plane has crashed into the mountain, and what we need is someone to sift through the wreckage and salvage what's left. At the end of the day, though...there was still a plane crash.

Well gee whiz, what did cities do before this revolutionary EFM law was passed? You think a bankruptcy judge can't sift through the financial carnage? Remember, this manager was appointed to run the finances but in reality it's a dictator with complete control of things other than finances.

[louis]

Shollin has it right. if we simply repeat history over and over again and expect different results then how can we ever hope to expect real change?

[michimoby]

Well gee whiz, what did cities do before this revolutionary EFM law was passed? You think a bankruptcy judge can't sift through the financial carnage? Remember, this manager was appointed to run the finances but in reality it's a dictator with complete control of things other than finances.

To answer your question: I don't know. I don't have any examples of municipalities in Michigan that declared bankruptcy prior to the Act being passed. Someone on this board may.

Here's a core difference that I see, at the onset, between a bankruptcy judge and EFM: a judge has no incentive for reform; he's appointed by an appeals court with little to no attachment to the challenges of reform.

An EFM is going to be put in place by a governor that sees a veritable tire fire burning out of control in his state's largest city. It raises the stakes, and I don't doubt the EFM is going to have some degree of personal, professional, and emotional investment in enacting reform.

[hamtown mike]

Would a bankruptcy cancel the debt owed on past bond issuances?

[RapBrown]

How ironic is it that while Barack Obama was saying in his press conf.; "I'm not a dictator. I'm the president.", Rick Snyder was taking over a city?