State bill proposes 20-year oversight period

**BankruptcyGuy** · May-08-14, 03:22 PM

The introduced bills [[10 of them) are not available on the state website yet. I'll know more when I can read them.

http://www.detroitnews.com/article/2...sight-20-years

**mwilbert** · May-08-14, 04:40 PM

Of course the details of how the oversight is supposed to work are really important, but on its face 20 years seems like a long time.

**Dan Wesson** · May-08-14, 05:17 PM

State aid is gonna come with strings attached.

Has Lansing learned a lesson...

**FlyOnTheWall** · May-08-14, 06:26 PM

Originally Posted by Dan Wesson

State aid is gonna come with strings attached.

Has Lansing learned a lesson...

We can only hope so.

**313WX** · May-08-14, 06:41 PM

And who didn't see this coming?

**compn** · May-08-14, 06:42 PM

all those fine people who assumed mike duggan would take over once orr left? lol!

**corktownyuppie** · May-08-14, 08:58 PM

Originally Posted by mwilbert

Of course the details of how the oversight is supposed to work are really important, but on its face 20 years seems like a long time.

It is a long time and probably needs to be. NYC's bankruptcy [[and yes, I'm aware it's not a perfect analogy) had 20+ oversight strings attached, too. So it's not without precedent.

But more importantly, 20 years is significant in that it's essentially enough time for an entire generation of Detroit civic leaders in the old culture to pass through. And enough time for a new generation of civic leaders to pass through without the poison of the corruption of the past.

And although the corruption wasn't the primary source of the downfall, the disease of civic leadership in the past has been that of an unwillingness to face reality.

Whether it's....

- employees of the library system embezzling money
- two DPD cops who run a chop shop
- union leadership who believe that the city is somehow still solvent
- a political culture that puts the needs of 20,000 employees over 700,000 [[and what was once 1,000,000) residents
- pension trustees taking bribes for funneling money

...I'm definitely fine and happy with the state having oversight.

**corktownyuppie** · May-08-14, 08:59 PM

Originally Posted by compn

all those fine people who assumed mike duggan would take over once orr left? lol!

The oversight would not be in the day-to-day management, but rather in the annual budget.

**Novine** · May-08-14, 10:45 PM

Why does this package of bills include legislation to prevent the millage for the DIA from being renewed?

**mwilbert** · May-08-14, 10:46 PM

Originally Posted by corktownyuppie

It is a long time and probably needs to be. NYC's bankruptcy [[and yes, I'm aware it's not a perfect analogy) had 20+ oversight strings attached, too. So it's not without precedent..

It is certainly not without precedent. The Boston Finance Commission [[a state-chartered oversight group, put into place because the Irish people running Boston weren't behaving up to Yankee standards) has been overseeing Boston's finances for over 100 years. http://bostonfincomm.com/The_Boston_FinComm/History.html 20 years is still a long time. How onerous it is really depends on the exact details. I don't think there is anything wrong with it in principle.

**Novine** · May-08-14, 10:47 PM

The state has a horrible record of managing DPS. Orr hasn't been a very good manager of city operations. It's only since Duggan was elected that there's been any positive movement when it comes to city operations.

**mwilbert** · May-08-14, 10:51 PM

Be that as it may, I don't see that the oversight board has any actual
management responsibilities.

**Novine** · May-08-14, 11:16 PM

According to the legislation, the oversight board will be heavily involved in managing many areas of the city's operations.

**Honky Tonk** · May-09-14, 04:23 AM

Originally Posted by Novine

According to the legislation, the oversight board will be heavily involved in managing many areas of the city's operations.

Oh, oh, Could mean no chauffeurs for the City Council.

**Vic01** · May-09-14, 04:44 AM

Originally Posted by Novine

Why does this package of bills include legislation to prevent the millage for the DIA from being renewed?

From the Free Press - http://www.freep.com/article/2014050...oit-bankruptcy
■ Prohibit the Detroit Institute of Arts from approving a new millage or renewing the existing millage that benefits the museum. That change reflects the change in ownership of the museum from a quasi-public to a private entity. And legislative leadership didn’t think it was appropriate for a private museum to go for a millage, said state Rep. John Walsh, R-Livonia, who is chairing the committee that will review the bills.
But that was the intent of the 0.2 millage in the first place. The DIA has said that when the 0.2 millage expires in 10 years, the goal is to have enough money on hand — roughly $400 million — to cover 60% of the museum’s operations and a sizable endowment that the millage would not be renewed.

The 20-year oversight of the city could go on for even longer or end earlier, depending on the city’s economic outlook, said state Rep. John Walsh, R-Livonia, who will chair the committee reviewing the bills.
“If there are periods of time of fiscal health in the city, then it could go dormant,” he said.

Councilwoman Saunteel Jenkins said the panel’s level of oversight should not be set in stone for all 20 years. She also said the mayor and the council should have equal representation on the board.“Twenty years from now, or even five years from now, this board should not have the same level of oversight that it might have next year,” Jenkins said. “At some point soon, the city of Detroit needs to be returned to a fully democratic government, meaning the people that the residents of the city of Detroit elected to run this city should be able to run this city.”

As usual, the City Council shows that they don't have a clue and want to get their hands on the $$$ ASAP.

**Vic01** · May-09-14, 05:01 AM

interesting Detroit News article -

Michigan politicians and civic leaders for years touted Detroit’s importance to the state and its future, but it wasn’t until the city’s historic bankruptcy that much of it proved to be more than talk.
Thursday, Republican leaders in the state House introduced legislation that would ensure Lansing’s participation in the “grand bargain” to bolster city pensions and protect the assets of the Detroit Institute of Arts. This from a party [[and governor) whose engrained biases are said to be inimical to Detroit, its people and its power structure.
Facts on the ground suggest otherwise. At least a decade in the making, Detroit’s complex workout is pushing disparate interests — from foundations, the DIA, suburban counties and evil Republicans to unions, pension funds and their Democratic supporters — to abandon entrenched positions long considered permanent fixtures in the landscape of southeast Michigan.
The result, still evolving, augurs a more interdependent region built on fiscal reality. The rationalization of Detroit’s asset base, and the need for new dollars to fund its court-supervised restructuring, is giving business, civic groups, suburban taxpayers and their political allies a much larger stake in the success of Detroit, its redevelopment and its leadership under Mayor Mike Duggan and a City Council led by Brenda Jones.
Think about that for a second: what years of Detroit Regional Chamber Mackinac Policy Conferences, countless do-good studies, civic harangues, divisive politicians, labor-management confrontations, aborted attempts at regional transportation and so many other things could not achieve, Chapter 9 bankruptcy well could.

From The Detroit News: http://www.detroitnews.com/article/2...#ixzz31D8cHEJx

**Hermod** · May-09-14, 06:14 AM

Originally Posted by compn

all those fine people who assumed mike duggan would take over once orr left? lol!

Duggan will run the city, he [[and clownsil) just won't have unfettered access to the checkbook. Spending will have adult supervision.

**compn** · May-09-14, 06:43 AM

anyone got bets on the EM law being deemed unconstitutional ?

**313WX** · May-09-14, 06:55 AM

Originally Posted by compn

anyone got bets on the EM law being deemed unconstitutional ?

What does it matter if it is, at this point?

**Hypestyles** · May-09-14, 07:05 AM

20 years, huh.. I have to get out of here.

**Honky Tonk** · May-09-14, 07:08 AM

Originally Posted by Hypestyles

20 years, huh.. I have to get out of here.

NP, There's plenty of other disfunctional Cities for you to choose from.

**Hermod** · May-09-14, 08:15 AM

Originally Posted by Hypestyles

20 years, huh.. I have to get out of here.

Why, it just means that the money doesn't get wasted. It should be no effect on you unless you are "friends and family" then your trough might be empty.

**bailey** · May-09-14, 08:35 AM

Originally Posted by Vic01

From the Free Press - http://www.freep.com/article/2014050...oit-bankruptcy
■ Prohibit the Detroit Institute of Arts from approving a new millage or renewing the existing millage that benefits the museum. That change reflects the change in ownership of the museum from a quasi-public to a private entity. And legislative leadership didn’t think it was appropriate for a private museum to go for a millage, said state Rep. John Walsh, R-Livonia, who is chairing the committee that will review the bills.
But that was the intent of the 0.2 millage in the first place. The DIA has said that when the 0.2 millage expires in 10 years, the goal is to have enough money on hand — roughly $400 million — to cover 60% of the museum’s operations and a sizable endowment that the millage would not be renewed.

Yes, that was the intent. Sort of like how the telephone tax was intended to pay for the Spanish American War....took 108 years to get that repealed.

Once the camel's nose is under the tent and all that. .

I fully expected a very earnest appeal to continue the millage for "a short while longer". [[and not really against paying it... just saying I didn't see this ever going away.)

**Honky Tonk** · May-09-14, 09:13 AM

Originally Posted by bailey

Yes, that was the intent. Sort of like how the telephone tax was intended to pay for the Spanish American War....took 108 years to get that repealed.

Once the camel's nose is under the tent and all that. .

I fully expected a very earnest appeal to continue the millage for "a short while longer". [[and not really against paying it... just saying I didn't see this ever going away.)

The DIA lifted the entry fee. So entry is now free, if you live in Oakland, Macomb, or Wayne counties, where the millage was voted on and passed. I invited a friend down from "evil" Farmington, to a Friday Night Live! concert. @ the end of the concert he stood up, looked me in the eye and said "Well, damn, THAT was certainly worth my $10". If you can't find $10 a year worth of entertainment @ the DIA, you aren't trying.

**bailey** · May-09-14, 09:17 AM

Originally Posted by Honky Tonk

The DIA lifted the entry fee. So entry is now free, if you live in Oakland, Macomb, or Wayne counties, where the millage was voted on and passed. I invited a friend down from "evil" Farmington, to a Friday Night Live! concert. @ the end of the concert he stood up, looked me in the eye and said "Well, damn, THAT was certainly worth my $10". If you can't find $10 a year worth of entertainment @ the DIA, you aren't trying.

I 100%, unequivocally agree with you in 100% of all respects on that point. [[is that clear enough that I'm a supporter of the millage?).

My only point was I never saw it going away in 10 years as claimed. Way too many weasel words used in support of that claim... we "hope" that... our "goal" is to be....etc.