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    Who are the NERD fund donors Mr Snyder?

    Raise the curtain.

    Greed, graft, corruption... horse racing? Just another day in government spending


    By Nick, Section News
    Posted on Fri May 22, 2009 at 07:59:13 AM EST
    Tags: Cox, Blue Cross, Detroit City Council, waste, graft, corruption, horse racing (all tags)

    Almost a pity that the Second Annual RightMichigan Bloggers' Challenge starts June 1st and not today because this morning's headlines provide more unbelievable blog fodder than any day in recent memory.  

    There's the same-old, same-old that could seemingly (and probably will) carry a political conversation for an entire Presidential term with talk of restructuring in the Big 3; this morning we learn the UAW may be making concessions with General Motors.  There's the steady and continuing escalation in jobless claims and applications for benefits.  Autos and layoffs in Michigan.  We've been down that road before and we'll be down it again.

    There's better... and more peculiar... news out there this morning, too, though.

    We've got Attorney General Mike Cox taking on Blue Cross, for instance, over their decision to again dramatically hike health insurance rates on Michigan senior citizens.  According to the Ivory Tower:

    "Blue Cross should stop putting profits over people and focus on its mission as the insurer of last resort," Cox said in a statement announcing the challenge.

    Overall, average increases sought would be 56% for non-elderly people buying their own insurance; 42% for group conversion policyholders who purchase coverage they once had at work, and 31% for seniors with supplemental Medicare, also known as Medigap policies.

    The massive hikes would slam more than 400,000 Michigan seniors, folks on fixed incomes who can afford it the least.  Of course, BC/BS claims they're caught between a rock and a hard place and can't afford NOT to hike rates.

    I get tough times.  If you live in Great Lakes State then YOU get tough times.  Baseball, apple pie, hot dogs and tough times.  That's how we roll.  The Attorney General doesn't think Blue Cross is quite as pinched as they're claiming, though.  Remember, this is the same company that last year gave away more than $1.54 million in bonuses to members of their board of directors.

    And while we're on the subject of inappropriate use of scant resources, the Detroit News checks in with the Detroit City Council which continues to break land-speed records for inappropriate behavior and irresponsible spending.

    The City currently faces a $300 million budget deficit but the City Council has increased their own budget by 12 percent over the last three years and now spends over $6 million a year.

    Read on...

    In the current spending plan, each council member gets a staff of four and, including his or her salary, has a budget of $656,158. The council president has a staff of eight, and a total budget of $939,772. The members, who make $81,312, also receive free use of a city vehicle.

    In other words, they live like kings and queens complete with their own taxpayer funded serfs.  

    The council budget for Detroit is costlier than many cities, such as San Diego, where each council person has a budget of $385,672, or in Pittsburgh, where the entire budget for the nine-person council is $1.3 million, or in Denver, where the annual cost this year for the 13-member council is $4.5 million.

    The News filed a FOIA and uncovered some interesting spending habits.  We've got members spending cash to bring staff with them on trips to Singapore and Puerto Rico, $3,250 being dropped on a new television set and a patronage program set up by Councilman JoAnn Watson who hired 13 additional staff members at or around $23 an hour each.  

    And then folks wonder HOW the City could amass a $300 million budget deficit.

    Still, anyone being critical of the Detroit City Council should probably take a deep breath and thank his lucky stars that the City is better off than the state of Michigan.

    See, in Detroit they're talking about cutting salaries and reigning in the budget but in Lansing things are already well past the point of simple salary cuts.  Weeeeeeell past that point.  The Associated Press reports this morning that Michigan's budget woes are now threatening to wreak a new brand of havoc.  

    Just when we thought things couldn't get worse we learn that... I'm sorry, this one has me a little choked up... we learn that... Michigan's horse racing office may have to cut the horse racing schedule this summer.  *Sob*

    Yep.  I'm awfully broken up about that one.  Now WHY does Michigan have a horse racing office?  Police.  Firefighting and emergency response.  Infrastructure.  Horse racing.

    Beautiful.

    < Rep. Meekhof Video Update | Friday in the Sphere: May 22 >


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    Display: Sort:
    I dislike... (none / 0) (#1)
    by rdww on Fri May 22, 2009 at 09:31:04 AM EST
    ... BCBSM as much as anyone.
    But look at the scenario above -- a grandstanding attorney general (who has the ethics of toe cheese) attacks a business by saying they "... should stop putting profits over people."
    Quick -- as conservatives, which side of this squabble do you think WE should be on?


    The Detroit City Council (none / 0) (#4)
    by thejmfc on Fri May 22, 2009 at 04:41:35 PM EST
    They make more than members of the State House?  Really?  That's insane.  

    You'd think that kind of money could buy a less inept City Council.

    Horse Racing in Michigan (none / 0) (#6)
    by maninap on Sun May 24, 2009 at 10:54:46 PM EST
    I am going explain why you should pay attention to horse racing in Michigan, and why it is very important to rural Republicans.

    Michigan has a strong agricultural heritage, which must not be forgotten. First, you must understand the horse racing industry has never been a drain on the Michigan budget. Under previous leadership, it was a successful sustainable enterprise, profitable for the State of Michigan.

    In short there are several large betting tracks in Michigan, it is called para-mutual betting. The taxes from these tracks partly go into the general fund, industry building activities, and other programs (I will get to them latter).

    We all know that the general fund is, so we will skip on.

    For industry building activities, these tax dollars sponsor the purse (prize) money at the county fair colt stakes and overnights. Think of them as the minor leagues, or feeder system for the big tracks. Secondly, they sponsor breeder's awards. These cash awards are given to the breeders of successful horses to encourage them to produce more horses, breed better, etc. It is merit pay.

    For other activities, this sliver of tax dollars largely funds MSU extension, 4-H programs, and the 4-H county fairs.

    It is a nice system where the State of Michigan makes some money and the industry strengths itself and helps out the rural community.

    The problem is the State has been taking more and more of the money and cutting the share returned to the horseman. Two large para-mutual tracks have closed (Jackson and Saginaw), others are at risk. Fewer racing days means less money down the line. Few feeder races, means fewer good horses at the para-mutuals (less better show up). Fewer feeder races, fewer horses are needed. With fewer horses born, less materials of living (feed, vet care, trucks, barns, etc.) are bought in Michigan, bring the economy done one more peg.

    Finally, MSU extension and 4-H are in trouble. Most kids spend a whole year working on their 4-H project. Fair rides, displays, and judging are a big part of rural life. Our local Republican party took up a private collection so kids could have ribbons last year. Several fairs do not think they will have the money to even open. County level threats of budget cuts to MSU extension and 4-H brought out 300 people to a meeting room designed for 60.

    This is a hot topic in rural and farming communities. The present leadership in Lansing has been "milking" the horse racing industry for every dime it can get at the behest of the Casinos that do not want to co-exist. The biggest mistake the horse racing industry made was not fighting their arrival.

    I find it interesting that every time there is a cut or tax, it appears aimed squarely at punishing a Republican constituency or appears to be an attempt to derail something that works in Michigan.

    Think I am wrong? Check out how many Republican (several you have interviewed) and even a few Democrats support reforms to help the horse racing industry.

    NB: The office of the Racing Commissioner is an independent body that protects the betting public's interest, i.e. prevents cheating.

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