Thursday, 09 August 2012 07:52
After the Detroit City Council decided not to allow a millage proposal on the November ballot that would cost property owners hundreds of dollars a year, a twitter storm broke out.
One Detroit pastor dug into City Councilman Kenneth Cockrel Jr. after Tuesday’s vote. The twitter spat seemed ironic coming from a pastor, whose faith, above all things, commands forgiveness and non-judgment.
The background of the dispute started on Tuesday when Police Chief Ralph Godbee and the Detroit Police Commission had the city council decide whether to ask voters in November if the city should put 8 mills on property tax and that could raise enough money to put 500 police officers to the street.
For people who own houses worth $50,000 the tax would be $250 a year on top of other city taxes and millages.
Cockrel went to twitter after the council voted 7-2 to strike down the ballot proposal, saying the police department financial problems should not be on the backs of the people who are already “taxed to the max”.
Cockrel criticized Police Chief Ralph Godbee in a tweet:
"I am not convinced that our problem is a lack of manpower issue. I'm convinced that our problem is a lack of an effective management plan issue."
That’s when J.A. Williams II, senior pastor of Spirit & Truth Christian Ministries and presiding prelate of Kingdom Builders Association jumped in to defend Godbee.
The following twitter spat ensued:
Williams: @kencockreljr2, @Ralph_Godbee is a much more efficient administrator of DPD than you've been as a councilman or mayoral fill-in. #ijs
Cockrel: @BishopJawill @Ralph_Godbee Both crime stats and word on the street suggest otherwise.
Williams: @KenCockrelJr2 @ralph_godbee On the other hand sir, the City was in the black when you first took your seat.
Cockrel: @BishopJawill @ralph_godbeeUntrue. It was my admin that actually uncovered the extent to which city's budget books hadn't been maintained.
Williams didn’t stop there. He continued:
Williams:…We meant every word. We continue to pray for you, our city & other leaders - even Ken Cockrel. Lol.
Williams:Detroit City Council = cowardly. @Ralph_Godbee = courageous. I normally don't express these positions publicly but WE DESERVE SAFE STREETS!
Was Pastor Williams being fair or should he been more of a twitter diplomat?
Wednesday, 25 July 2012 09:45
Is Mayor Dave Bing gearing up for another mayoral run? Or has Gov. Rick Snyder really crossed a line with his proposals for Detroit?
Up until now, Bing has been mostly supportive of input from the State of Michigan to support and control parts of the city that are failing under the financial crisis. He supported the consent agreement, he supported cuts proposed by the consent agreement's financial advisory board, and he condemned the city's Corporation Counsel when she tried to stall the consent agreement.
But at a meeting with Detroit NAACP members in Midtown Wednesday, Bing hotly expressed frustration with Snyder's proposals for the city using words like “hell” and “damn”, according to a report in The Detroit News.
Bing said of Governor Snyder:
“You can't come in here and think you can do any damn thing that you want.”
Bing added that he does not want the state to “impose” decision on Detroit:
"I have never in my 46 years in this city seen a governor of the state of Michigan involved in city politics like this one," he said.
But The state has been imposing a lot of things lately, so why has Bing turned on this one?
My first guess is that he’s lining up his ducks for another mayoral run and in order to get a good footing with his electorate he has to start standing up the governor.
I’m no political advisor, but I guarantee candidates who toss the term “union busting” around a few times and throw verbal zingers Snyder’s way are bound to rack up Detroit votes.
City Council President Charles Pugh, who also has expressed interest in a mayoral run, has essentially done the same thing. He supported the consent agreement up until now, when he suddenly is calling it “union busting” and blasting the state for wanting to take over Detroit.
Looks like Bing, Pugh and DMC front man Mike Duggan will be top mayoral contenders in 2013. And it’s clear that a successful run it will be a tight balancing act of who can keep in good with the State while giving Detroit voters what they want to hear.
Monday, 23 July 2012 07:26
Consent or Bankruptcy? No Easy Way Out
Last week, when the city council voted on the controversial, proposed union wage and benefit cuts under the consent agreement, Council Member Kwame Kenyatta suggested the city would be better off filing for bankruptcy.
That got people talking: What are the real consequences of municipal bankruptcy?
One Detroit News columnist, Daniel Howes, speculated on what could happen if the city went under the mercy of a federal bankruptcy judge versus the financial board that's now in place under the consent agreement.
“When a judge orders Belle Isle sold to repay creditors or demands the Detroit Institute of Art liquidate a portion of its holdings or abrogates collective bargaining agreements with the city or approves massive legal fees for legions of lawyers or renders judgment on a parade of horribles — that would be preferable?”
After reading that I wanted to find out exactly what the powers of a bankruptcy judge are and whether Howes was right: Could we potentially be forced to sell Belle Isle?
I decided to ask an expert on municipal bankruptcy. Eric Scorsone, specialist in State and Local Government at Michigan State University, says, "no":
“A bankruptcy judge cannot force the City of Detroit to sell Belle Isle or any city-owned property. That’s just not accurate,” he said.
Scorsone distinguished a key difference between a bankruptcy judge and a financial manager or board:
“A bankruptcy judge is really almost more of an arbitrator or an administrator than anything else. An EM is kind of in the driver’s seat.”
Since a bankruptcy judge tends to be more hands off, that’s part of the problem. If the city went bankrupt a judge wouldn’t have the power to change any policies or government structures that landed the city in this financial stew in the first place:
A bankruptcy judge is not gong to fix try to the city’s economy,” Scorsone told me.
But even if we weather bankruptcy, an EM, or Consent Agreement board, it looks like there’s just not easy way out of this, Detroit.
Tuesday, 17 July 2012 07:41
Detroit City Council Member James Tate had a question yesterday for the Financial Advisory Board's Chief Jack Martin. The Board met with the Council yesterday to discuss their proposed cuts to city labor contracts.
"PA4 we know is up in the air right now. Potentially it will be voted down if placed on the ballot. What is your contingency plan?" He asked Martin, who is in place under PA4 (the state's emergency manager law) to manage the city's finances in crisis.
"I can’t say specifically what we may do. But no matter what happens with PA4, we’re still running out of cash. We need the hard dollar savings to get through this year. There’s a million-dollar difference in expenses and revenue between 2012 and 2013. My standpoint is we stay on the current path no matter what happens to PA4."
At yesterday's meeting the City Council did not approve the Financial Advisory Board's proposed cuts to city worker's wages and healthcare benefits. But Mayor Dave Bing and the Financial Advisory Board urged the council to act and not stall the labor cuts as the city can no longer operate in the status quo. Under PA4, the Financial Advisory board does not need the council's approval to make these cuts.
"We can talk about this for the next six months, but the bottom line is we’re running out of cash. If we don’t do it in an organized fashion there is going to be chaos and we’ll end up like some of these jurisdictions that filed bankruptcy."
Monday, 25 June 2012 08:23
The City of Detroit is operating like a rollercoaster. Every week is a new drama. Two weeks ago it was the state threateneing to withold revenue sharing funds if a lawsuit challenging the consent agreement wasn't dropped. Last week, a judge tossed the contoversial lawsuit and the city was able to move forward appointing the last memebers of the financial advisroy board put in place under the consent agreement. It seemed like the maybe the rollercoaster was slowing down a bit.
Then, last Friday, Bing stormed out of a meeting with city council and blasted them for holding back the city by not agreeming to remove the lawyer who brought the lawsut against the consent agreement. City Council President Charles Pugh blasted back saying the mayor needed to show better leadership. This week, Bing wants to hire is own lawyer and not use the city's top lawyer, Krystal Crittendon because of the negative effects the lawsuit she brought had on the city.
It seems that this week all niceties are out the window and now the familiar rift between the Detroit Mayor’s Office and the City Council is clearer than ever.
But was Detroit Mayor Dave Bing himself who said the city needed to move forward without distractions. So why is he causing more?
There seems to be reason beyond sinking bond ratings that Bing wants Crittendon out so bad. Is he afraid she will appeal the court’s decision to throw out her case that called the consent agreement void? Is the state privately threatening him with more cuts unless he removes the lawyer who could stand in the way? There has to be an better explaination for this one.
It doesn’t take a genius to figure that out: He’d already asked the Council remove Crittendon two week before when the state threatened to hold back $80 million in funding if she didn’t drop the lawsuit and they flatly refused. In addition, less than the 2/3-majority vote needed to remove Crittendon voted in support of the consent agreement in the first place.
This can be avoided. Crittendon hasn’t said she will appeal the decision to toss the lawsuit she brought, so, for now, this dramatic showdown should be over.
Tuesday, 12 June 2012 08:13
But I remember three years ago when Bing just got into office and he was trying to do make the cuts needed without state intervention. Remember the union contracts? I particularly remember when lawsuits were flying then namely around AFSCME Local Council 25. The city charter was again in question. Bing had terminated union contracts saying basically the same thing: If I don't there will be payless paydays, the city is broke, and so on. Only, then he estimated the city had a month or two to go before it crumbled--financially that is.
Bing is doing what he and many others feel is best for the city. Concede some power to the state so the city doesn't go bankrupt -- which would be bad for everyone involved. What has to happen is it has turned into an "us vs them" argument when now is the time people need to be working together. If Bing is right this time and the city IS running out of cash, then that is, indeed, perilous for all residents. Too bad Bing used the running out of money in x amount of time warning too many times before.
No doubt he wasn't kidding then, but now, since he is giving the city four days before bust, it's similar to what he said before to get the cuts he needed. So now that the situation has escalated and the stakes have risen, people are acting apathetic. Threats of running out of money are nothing new because the city has been running out of money for a long time. What is the case now? Is it literally a count down to chaos? Does all of Detroit's future really hung on Krystal Crittendon and the lawsuit she filed to hold up the consent agreement? The stakes are high, yes. But does that mean the drama needs to escalate, too?
Monday, 11 June 2012 12:55
Will the state pull it funding from Detroit? Will there be payless paydays? These are the questions that remain unsanswered after a meeting this morning between Mayor dave bing and the Detroit City Council.
Despite mounting pressure from the state to drop a lawsuit stalling the consnet agreement, Council told the mayor this morning in a meeting that they would not ask Krystal Crittendon, the city's top lawyer, to drop a lawsuit that calls the consent agrement void due to some $200 million in unpaid water bills and parking ticekets. The council plans on letting the lawsuit run its course, despite serious pleas from Bing and threats from the state to cut $80 million in revenue sharing dollars.
While Bing has been warning of payless paydays for city employees since he got into office, this time it is a reality, he says, calling it a "perilous" position. Stay tuned for what happens next.
Wednesday, 06 June 2012 07:57
The rift between the Detroit mayor’s office and the city council over closing or privatizing city departments was clear at Tuesday’s open meeting. When residents lectured the council for putting the Human Services Department and the Public Health Department on the chopping block, Council member JoAnn Watson made sure to set the record straight that it was the mayor’s office, not the council, that was pushing the cuts. “That was the executive branch,” she told a resident who hotly voiced her concerns about department cuts. “You’re preaching to the wrong group, honey.”
While it wasn’t on the council’s agenda to vote on department decertification this Tuesday, when it does come up for a vote, council will likely vote it down.
But that doesn’t mean city departments are safe from trims. The financial advisory board, appointed under the consent agreement that was approved by the City Council and Mayor Dave Bing, would ultimately take financial decisions away from the council.
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