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    Tag: Futility

    All Of A Sudden

    By JGillman, Section News
    Posted on Wed Dec 04, 2013 at 10:21:10 AM EST
    Tags: Michigan, Detroit, EFM, Kevyn Orr, Bankruptcy, Restructuring, Futility, Higher Taxes, Pensions (all tags)

    The repealed Emergency Financial Manager law probably seems like a better idea now; at least to those who spent great amounts of money to defeat it.

    Its not as if they weren't warned.

    State appointed Emergency Financial managers couldn't touch any pension contracts whatsoever. As a state initiated law, it would  have run afoul of article 9, section 24; the state's own constitutional protection for pensions.  The EFM law was however, a tool to readjust current contracts not associated with those pensions.  Federal courts would have no say at that point.  But labor unions, and certain municipalities' elected bodies preferred to not allow such a thing.

    Instead, a bankruptcy, fully clarified in the constitution as being under federal jurisdiction, takes the state's constitutional protections of those pensions off the table.


    (3 comments) Comments >>

    "I'm Gonna Tell On You!"

    By JGillman, Section News
    Posted on Fri Jul 19, 2013 at 04:12:47 PM EST
    Tags: Michigan, Detroit, EFM, Kevyn Orr, Bankruptcy, Restructuring, Futility, Higher Taxes, Pensions, Judicial Playthings, Rick Snyder, Toys (all tags)

    Seriously, its really becoming US V THEM.

    The governor actually does something that makes sense, (and only 2-3 decades late) and the protectors of leftist failures jump into action. And, the kids are getting hurt feelings. Yesterday's Detroit Bankruptcy filing made little Rose cry.  She thought she had beat the bad man to the punch.  So she has retaliated:

    "Aquilina said she would make sure President Obama got a copy of her order."
    THAT will teach that bad boy a lesson.

    Once uncle Barry hears about it, he's going to take Ricky's bridge away.

    (6 comments) Comments >>

    A Message To Our Legislators - Beware False Choices

    The Corpse Is Still In The Morgue

    By JGillman, Section News
    Posted on Tue May 14, 2013 at 11:41:32 AM EST
    Tags: Michigan, Detroit, EFM, Kevyn Orr, Bankruptcy, Restructuring, Futility, Higher Taxes, Pensions (all tags)

    Who will claim the decaying body that is Detroit?

    Kevyn Orr, The emergency financial manager, was given an unworkable task. In a city that has been reassured repeatedly that it is too big to fail, the lights are going out. All manner of economic development incentive paid for by Michigan taxpayers as yet proves to be insufficient to generate the activity necessary for basic government services, and a sustained infrastructure. Four decades of progressive politics and fear of calling out bad decision making as it happened; fearing the sting of racial politics, and lack of compassion.

    Its far too late now.

    Banks that have loaned Detroit operating cash should count those loans as losses.  Retirees that did their jobs, and counted on their employer to manage finances and their retirement moneys appropriately might wish to reevaluate their portfolios. Orr's current status report?

    "Excluding proceeds from debt issuances, the City's expenditures have exceeded revenues from fiscal year 2008 to fiscal year 2012 by an average of $100 million annually. These financial shortfalls have been addressed with long term debt issuances (e.g., $75 million in fiscal year 2008, $250 million in fiscal year 2010 and $137 million in fiscal year 2013) and by deferring payments of certain City obligations, such as contributions to the City's  two pension funds."

    The accumulated unrestricted deficit was $326.6 million at the end of fiscal year 2012. Fiscal year 2013 (year ending June 30, 2013) is currently projected to add approximately $60 million to the accumulated unrestricted deficit balance (excluding the impact of the $137 million debt issuance).

    But that's not all.

    There are some other interesting items that have a familiar smell

    Continued below the fold.

    (4 comments, 783 words in story) Full Story

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