Bring in the EFM!

**Tig3rzhark** · February-08-13, 04:38 PM

I'm pretty sure I can speak for most of us when I can say, enough is enough!

The city of Detroit is in need of a rude awakening. I can't think of a better way to wake up Detroit than for the Governor and whoever is appointed the Emergency Financial Manager to show up at city hall this month and walk up to the City Council and the Mayor's office and tell them exactly what was going to happen from that point onward.

Everyone against the EFM have been telling me that Detroit isn't broke, that the city doesn't need the state to jump in and rescue the city. I've heard enough of that!

Most reasonable people can see that this city can barely afford to maintain city services for those that remain here.

Whoever is picked, needs to have the integrity to represent the people of Detroit. The last people we need to pick, are people that have worked in Detroit's city government before.

If Synder doesn't pick one before March, Detroit will have the option to go into bankruptcy. When that happens, the city will definitely suffer.

So this month is it. Let's bring the EFM into Detroit.

**mwilbert** · February-08-13, 07:10 PM

Originally Posted by Tig3rzhark

Whoever is picked, needs to have the integrity to represent the people of Detroit. The last people we need to pick, are people that have worked in Detroit's city government before.

I don't think the job of an EFM would be to represent the people of Detroit. In my opinion, the people of Detroit have been represented into ruin. The job of an EFM [[or EM) is to stabilize the finances of the city. To the extent the the people of the city want that, the EFM is following their wishes, but the EFM is not representing them.

**Packman41** · February-08-13, 08:14 PM

Originally Posted by mwilbert

I don't think the job of an EFM would be to represent the people of Detroit. In my opinion, the people of Detroit have been represented into ruin. The job of an EFM [[or EM) is to stabilize the finances of the city. To the extent the the people of the city want that, the EFM is following their wishes, but the EFM is not representing them.

This very same opinion was voiced in yesterday’s paper. This turnaround expert made a case for a strong EFM. It is well worth the read.

http://www.detroitnews.com/article/2...en-follow-plan

Here is an abridged version of some of his comments:

“Detroit must be cured of its addiction to debt. At the same time, the city must increase revenue and restructure its finances.”

“Detroit needs to surrender its checkbook to an independent fiduciary that will be immune to political pressure and emotional decision-making.”

“Initiate immediate sovereign default on all outstanding loans and bond debt.”

“Institute an immediate 20 percent across-the-board reduction of expenses”

“Institute an immediate 5-year surcharge of 20 percent of the net revenue from all commercial business conducted in Detroit”

“Within 90 days, structure a process to solicit bids for privatization of all city services.”

“All abandoned and/or vacant tax delinquent property after a 90-day grace period is seized by eminent domain and the land is cleared”

“The independent fiduciary would be focused on administering the repayment of the city's debt.”

” This plan is, at the very least, controversial. Bold change always is. Unfortunately, based on history, whoever would enact a plan like this would need to take some serious precautions, such as hiring private security and living in a secret location. Change such as this could lead some to violence until the benefits of the change are apparent.”

“This plan is not politically palatable. As we have seen, political agendas cannot solve the financial problems of Detroit's, or for that matter Washington's, magnitude.”

But you should read the article in its entirety before commenting

**Hermod** · February-09-13, 05:54 AM

Originally Posted by Packman41

T
“Institute an immediate 5-year surcharge of 20 percent of the net revenue from all commercial business conducted in Detroit”

Gee, maybe we should quit doing our commercial business in Detroit.

**Honky Tonk** · February-09-13, 08:02 AM

Originally Posted by Hermod

Gee, maybe we should quit doing our commercial business in Detroit.

On the other hand, PAYING people to buy buildings, open businesses, move here, and giving them huge tax breaks on top of it, other then making for good press releases, doesn't seem to put the City too far ahead financially.

**Wesley Mouch** · February-09-13, 01:10 PM

Originally Posted by Honky Tonk

On the other hand, PAYING people to buy buildings, open businesses, move here, and giving them huge tax breaks on top of it, other then making for good press releases, doesn't seem to put the City too far ahead financially.

I don't know about that. What's happening in the Cass Corridor looks like in the long-term, it will benefit all Detroit citizens.

**corktownyuppie** · February-10-13, 01:19 AM

Originally Posted by mwilbert

I don't think the job of an EFM would be to represent the people of Detroit. In my opinion, the people of Detroit have been represented into ruin. The job of an EFM [[or EM) is to stabilize the finances of the city. To the extent the the people of the city want that, the EFM is following their wishes, but the EFM is not representing them.

There is, unfortunately, no way for me to say what I'm about to say without sounding condescending.

Another way of saying it is that there's a difference between what many Detroiters say they "want" vs. what Detroiters really "need" to eventually get the things they want.

We're weeks away.

**Tig3rzhark** · February-08-13, 07:12 PM

Well, an EFM coudn't be worse than bankruptcy.

**313WX** · February-08-13, 07:20 PM

Originally Posted by Tig3rzhark

Well, an EFM coudn't be worse than bankruptcy.

The pain of a bankruptcy would be the same for Detroiters as would the pain of an EM.

The difference between the two is whether or not Detroiters and its workers must endure all of the pain or will all of the stakeholders [[retirees, Oakland/Macomb County's bond rating, bankers, etc.) share in the pain as well.

Either way, if you think municipal services are bad with Dave "do-nothing like a deer in headlights" Bing at the helm, wait until the EM comes along with its buzzsaw.

**Hermod** · February-08-13, 07:26 PM

Originally Posted by 313WX

The pain of a bankruptcy would be the same for Detroiters as would the pain of an EM.

The difference between the two is whether or not Detroiters and its workers must endure all of the pain or will all of the stakeholders [[retirees, Oakland/Macomb County's bond rating, bankers, etc.) share in the pain as well.

Either way, if you think municipal services are bad with Dave "do-nothing like a deer in headlights" Bing at the helm, wait until the EM comes along with its buzzsaw.

Maybe if you g=brought in an EFM from Mackinac Center, he would take the slices off the top of the bureaucracy instead of from the line workers at the bottom of the bureaucracy. Get rid of all of the "friends and family" hires made over the years. Throw out the civil service and seniority rules.

**Johnnny5** · February-08-13, 08:28 PM

Originally Posted by Hermod

Maybe if you g=brought in an EFM from Mackinac Center, he would take the slices off the top of the bureaucracy instead of from the line workers at the bottom of the bureaucracy. Get rid of all of the "friends and family" hires made over the years. Throw out the civil service and seniority rules.

Yeah, because the folks at the "Mackinaw Center" are always looking out for the little guy. LOL!

**nain rouge** · February-08-13, 10:20 PM

Can Detroit's budget really be balanced? All I see left as an option is cutting the staff of the Water & Sewage Department and privatizing it, and handing some parks off to the state. You could also maybe cut a few police and bring in more state police.

The last, last possibility would be to cut existing pensions. Is that possible? Can you completely take away the pensions of all the white ex-cops living in places like Shelby Township and Rochester Hills?

**corktownyuppie** · February-09-13, 12:39 AM

Originally Posted by 313WX

The pain of a bankruptcy would be the same for Detroiters as would the pain of an EM.

The difference between the two is whether or not Detroiters and its workers must endure all of the pain or will all of the stakeholders [[retirees, Oakland/Macomb County's bond rating, bankers, etc.) share in the pain as well.

I don't understand that...if the pain for us is going to be the same either way, then what good is causing Oakland/Macomb County to suffer?

I take the opposite strategy...if all else is equal and that EM/Bankruptcy is equal in suffering, then take the one that affects our neighbors the least.

If we're gonna sink, then let's not take everyone down with us. Let's preserve all that we can for ourselves and everyone around us so that when the suffering is done, there will be more available with which we can rebuild.

**illwill** · February-09-13, 04:35 PM

Either way, the city will suffer a lot. Mainly city workers who'll most likely be released so that city services will be contracted out to lower paying companies.

It's not gonna be pretty.

**casscorridor** · February-09-13, 05:07 PM

The EFM is about one thing, and it's not about balancing the books. It is about an assault on the commons, and on working people. It is about shutting down and privatizing all city services and striping the people of democracy. It's about giving free reign to corporations to the develop the city to whatever vision they have in mind, regardless of what good or destruction that may bring, while giving them money and incentives to boot. The reign of Snyder has been nothing but a full frontal assault on working-people, including attacking their right to organize and even passing a new EFM law right after voters overturned it. The people of Detroit and Michigan and the entire country need to stand up and fight, along with workers who are doing so around the world, and say no to more austerity no more attacks on workers. Make the bankers and the capitalists pay!

**corktownyuppie** · February-09-13, 07:04 PM

Originally Posted by casscorridor

The EFM is about one thing, and it's not about balancing the books. It is about an assault on the commons, and on working people. It is about shutting down and privatizing all city services and striping the people of democracy. It's about giving free reign to corporations to the develop the city to whatever vision they have in mind, regardless of what good or destruction that may bring, while giving them money and incentives to boot. The reign of Snyder has been nothing but a full frontal assault on working-people, including attacking their right to organize and even passing a new EFM law right after voters overturned it. The people of Detroit and Michigan and the entire country need to stand up and fight, along with workers who are doing so around the world, and say no to more austerity no more attacks on workers. Make the bankers and the capitalists pay!

I don't care who provides city services, I just want it to be done. Detroit's concern shouldn't be more democracy. It should be more money to run the democracy.

**Tig3rzhark** · February-09-13, 07:36 PM

Originally Posted by corktownyuppie

I don't care who provides city services, I just want it to be done. Detroit's concern shouldn't be more democracy. It should be more money to run the democracy.

I would have to agree, and this especially comes to transportation services as well as police and fire. The problem is that everything comes into one general fund and partitioned from there. The city doesn't manage the money right, and I'm going to admit, that's the fault of myself and citizens. We were too stupid to elect these folks and now we're the laughing stock of the nation.

This year, we have a chance to make things right. We can appeal to the governor to do what the current clowncil and Mayor won't do. We can have him come in and take care of business.

The local elections can still occur, but we need to get some financial stability at a FASTER pace. This is still the most populated city in Michigan. That may change soon depending on the continued population loss though.

This is a crisis. A crisis created by a legacy of bad decisions by all of Metro Detroit. It's time to reap the whirlwind and start the recovery.

**mwilbert** · February-09-13, 07:38 PM

Originally Posted by casscorridor

The EFM is about one thing, and it's not about balancing the books. It is about an assault on the commons, and on working people. It is about shutting down and privatizing all city services and striping the people of democracy. It's about giving free reign to corporations to the develop the city to whatever vision they have in mind, regardless of what good or destruction that may bring, while giving them money and incentives to boot. The reign of Snyder has been nothing but a full frontal assault on working-people, including attacking their right to organize and even passing a new EFM law right after voters overturned it. The people of Detroit and Michigan and the entire country need to stand up and fight, along with workers who are doing so around the world, and say no to more austerity no more attacks on workers. Make the bankers and the capitalists pay!

Regardless of the motivations of Gov. Snyder and the legislature, and anyone else for that matter, the city is in an untenable financial situation. No one is going to bail the city out, not the bankers and the capitalists, and not the state. And even if they would like to in principle [[which I don't think is the case), no one in their right mind would bail the city out under its current leadership. It's E[[F)M, or bankruptcy, or both. If you think there is a grassroots movement out there that could be brought together to stop that, I think you are mistaken.

**wolverine** · February-10-13, 02:17 AM

“Detroit needs to surrender its checkbook to an independent fiduciary that will beimmune to political pressure and emotional decision-making.”

That's what I want the most. No more shady business deals or overpriced contracts, retention of expensive departments that do very little.

I also like this as well:

“All abandoned and/or vacant tax delinquent property after a 90-day grace period is seized by eminent domain and the land is cleared”

But I don't want the city to hold this property. I'd prefer the state land bank be responsible, but I'm even concerned they do not have the resources to quickly demolish or stabilize vacant structures.

**313WX** · February-10-13, 08:35 AM

Originally Posted by wolverine

“Detroit needs to surrender its checkbook to an independent fiduciary that will beimmune to political pressure and emotional decision-making.”

That's what I want the most. No more shady business deals or overpriced contracts, retention of expensive departments that do very little.

Yes.

Of course, I'm not sure how an EM would not be immune to political pressure and emotional decision-making, considering that ther would be no oversight of their decisions and they're appointed by a politician.

**nain rouge** · February-10-13, 11:33 AM

It's high time that the people who thought they could cut and run from the cities they made their living in at age 50 or 55 or whatever saw a pension cut. I get that it was in a contract, but to me it feels like a dishonest way to conduct yourself.

I remember reading, for example, that something like a third of Highland Park's taxes go straight to paying pensions - and if I recall correctly - not one of the pensioners lives in Highland Park. So you have the people of Highland Park suffering with no streetlights, a threadbare police department, and terrible EMS, and a huge chunk of their tax dollars going to Joe Schmoe in Ferndale that retired when he was 52. I mean, really?

It's a modern tragedy.

**Vic01** · February-10-13, 05:12 PM

Originally Posted by nain rouge

It's high time that the people who thought they could cut and run from the cities they made their living in at age 50 or 55 or whatever saw a pension cut. I get that it was in a contract, but to me it feels like a dishonest way to conduct yourself.

I remember reading, for example, that something like a third of Highland Park's taxes go straight to paying pensions - and if I recall correctly - not one of the pensioners lives in Highland Park. So you have the people of Highland Park suffering with no streetlights, a threadbare police department, and terrible EMS, and a huge chunk of their tax dollars going to Joe Schmoe in Ferndale that retired when he was 52. I mean, really?

It's a modern tragedy.

I don't see that it's anyone's business where a retiree lives, or moves to, after they retire. Many retirees move to Florida or Arizona [[both sound better then Ferndale)... Would you suggest cutting their pension because they choose a warmer climate? Or how about those that move to be closer to their children/grandchildren... cut their pension?
Let's get real here... make future pension plans for those that might have one coming [[a smaller and smaller group as yrs go by) more realistic.

**douglasm** · February-10-13, 08:19 AM

The one problem I have with the idea of an EM is who is in charge of oversight. I understand that something has to be done, but in bankruptcy, decisions are subject to judicial review. Does that option exist if an EM is appointed?

**313WX** · February-10-13, 08:34 AM

Originally Posted by douglasm

The one problem I have with the idea of an EM is who is in charge of oversight. I understand that something has to be done, but in bankruptcy, decisions are subject to judicial review. Does that option exist if an EM is appointed?

Agreed.

We may get somone for example who simply just wants to "sock it to those dumb racist Detroiters who destroyed MY city" and will use this financial crisis as a means to do so. They don't necessarily have to abide by the law given that the satate has awarded that one inviidual the power of a BK judge minus the judicial review.