Republican Controlled Legislature Drafting Bills for Detroit “Bailout”

State legislators are working on about a dozen bills that will use $350 million taxpayer money that Governor Rick Snyder has proposed. We taxpayers “bailout” the auto companies, banks and Wall Street now we are adding cities to the list of too big to fail. Who is next on this list the insurance companies?  1-Bailout-rick_snyder

You just know whenever you hear politicians talk about using taxpayer money in this fashion or when they talk about increasing our taxes more often than not it becomes a reality. As I have previously reported about the talk of a gas tax and vehicle registration fee increases this to will come to fruition.

The thing about the gas tax and vehicle registration fee increases are two fold: One our elected legislators have been stealing our road fund monies for years for other unspecified state spending purposes playing the shell game of robbing Peter to pay Paul. The other is because of possible repercussions here in the 2014 elections they will not bestow these increases on we taxpayers till after the elections.

When will we taxpaying citizens of Michigan come to the reality that we can no longer allow any one Political Party to hold power and control for more than one term? What we really need is a viable Constitutional third Party that represents “We the People” instead of the lobbyist and special interest groups who have a stranglehold on our elected leaders in both of the two major parties. 4 Bailout kwame-kilpatrick-award-2
http://www.freep.com/article/20140401/NEWS01/304010020/Legislature-Detroit-grand-bargain-bankruptcy

How Detroit Went Broke Taxpayers of Michigan now on the Hook
The Wall Street types who applauded former Mayor Kwame Kilpatrick’s financial acumen following his 2005 deal to restructure city pension debt should consider this: The numbers prove that his plan devastated the city’s finances and was a key factor that drove Detroit to file for Chapter 9 bankruptcy in July.

The State of Michigan and its legislators are also contributors in the blame. Lansing politicians reduced Detroit’s state-shared revenue by 48% from 1998 to 2012, withholding $172 million from the city, according to state records. We are currently seeing the results of the cuts to revenue sharing in municipalities across the state. These cuts were part of the very favorable big business buddies reform of the business tax in 2012.
http://www.freep.com/interactive/article/20130915/NEWS01/130801004/Detroit-Bankruptcy-history-1950-debt-pension-revenue

Crony Capitalism and Corruption

The Wall Street types who applauded former Mayor Kwame Kilpatrick’s financial acumen following his 2005 deal to restructure city pension debt should consider this: The numbers prove that his plan devastated the city’s finances and was a key factor that drove Detroit to file for Chapter 9 bankruptcy in July.

http://www.freep.com/interactive/article/20130915/NEWS01/130801004/Detroit-Bankruptcy-history-1950-debt-pension-revenue 5 Bailot Monica Conyers 2009 mug shot

Detroit City Councilwoman Monica Conyers Convicted of Bribery
Mrs. Conyers was the council’s president pro tem, went from one of Detroit’s most politically powerful and mercurial women to an admitted felon in a “pay-to-play” scheme for a $1.2-billion-plus sludge treatment contract.

Conyers plead guilty and sent to prison for taking cash-stuffed envelopes at a city recreation center and in a McDonald’s parking lot. She admitted taking at least $6,000 from Detroit businessman Rayford Jackson to change her vote in favor of a $1.2-billion in the Synagro sludge disposal contract scandal in 2007.
http://www.freep.com/article/20090627/NEWS01/906270358/Conyers-guilty-bribery-case

Former Detroit Police Chief Convicted of Embezzlement 6 Bailout Chief Hart
The corruption and theft of taxpayer money goes why back in Detroit. Take former police chief William L. Hart as but one example. Hart was police chief under the Mayor Coleman Young administration. He was convicted of stealing $2.6 million in taxpayer money over seven years.

When the FBI raided his home they found thousands of dollars in a ceiling fan. When questioned about that money being hidden in the ceiling Hart said he didn’t believe in banks. Hart embezzled the money to buy luxury cars and gifts for three former “girlfriends” as well as to renovate his home and a cottage in Canada.
http://www.nytimes.com/1992/05/08/us/former-detroit-police-chief-convicted-of-embezzlement.html

Schostak Bros. plans $111 million, 16-story Detroit office tower
The Detroit Brownfield Redevelopment Authority’s nine-member board has reviewed a $27-million brownfield tax incentive plan for site preparation and infrastructure improvements for the building, which is expected to include first-floor retail space and a parking deck wrapping around Cadillac Tower facing Campus Martius. Capital Cronyism Stop

http://www.crainsdetroit.com/article/20130916/NEWS/130919874/schostak-bros-plans-111-million-16-story-detroit-office-tower

Detroit-based Meridian Health Plan is expected to be the sole office tenant
http://www.crainsdetroit.com/article/20130919/NEWS/130919821

$27 million in tax incentives approved for new Detroit office tower
In addition to the brownfield incentives, Schostak and Meridian are pursuing Michigan Economic Development Corp. Community Revitalization Program grants and U.S. Department of Treasury New Markets Tax Credits and other incentives to help finance the building.
http://www.crainsdetroit.com/article/20130925/NEWS/130929905 Capital Cronyism Free Markets

Meridian Health Plan expected to move into 16-story Detroit building in 2017
http://www.crainsdetroit.com/article/20130918/NEWS/130919855

Schostak Bros. plans $111 million, 16-story Detroit office tower to seek taxpayer subsidies
http://www.crainsdetroit.com/article/20130916/NEWS/130919874

Snyder Awards Meridian Health Plan for Medicaid Expansion Healthy Michigan SnyderCaid
http://www.mha.org/mha/weeklymailing/2014/012014/monday_report.htm

Bob Ficano, John Rakolta and the Big Jail Problem Capital Cronyism Fascism
Rakolta and Walbridge simply cannot be allowed near another government contract. Even projects that aren’t directly funded by taxpayers, but will take advantage of public bonding for initial cash flow, should be off-limits.

Like Team Ficano, Walbridge has proven to be a poor agent for residents and taxpayers. It’s time for us, as principals, to cut them loose. Capital Cronyism Kills

Looks like the Democrats and Republicans are working together as to pull off this heist of taxpayers’ dollars for their political and personal gains. Rakolta is a big Republican Party donor who was heavily involved in Mitt Romeys presidential campaigns in both 2008 and 2012.

He is also a partner with heavy Democrat donors in the “failed” Raleigh Film Studio. He was recently appointed to the board of the failed MEDC by Governor Rick Snyder. Oh yeah and we taxpayers are now on the hook for that studios “failed” missed, bond payments.
http://www.deadlinedetroit.com/articles/5094/bob_ficano_john_rakolta_and_the_big_jail_problem

Detroit News Report falls short on Michigan’s Road Fund Money Allocation Problem

Michigan ranks dead last in the nation when it comes to its per capita spending on its roads and bridges, according to a report citing U.S. Census Bureau data. Is it because Michiganders don’t pay a high enough gas tax, or have our legislators been re-directing our road tax dollars elsewhere?

Michigan has the 5th highest Gasoline Tax in the nation, only Democrat controlled CA, NY, HI, CT are higher! Michigan’s gas excise tax is 19 cents per gallon. Michigan also collects sales taxes and an environmental regulation tax for a whopping grand total of 39.4 cents per gallon.

Michigan legislators have been stealing, robbing and shifting “our” road fund monies for years! Now that the kitty is bone dry they have the gull to suggest “we taxpayers” pony up by accepting a gas tax and vehicle registration fee increases.  Article continues below the picture.

Gas Tax Hike Snyder

Michigan legislative Transportation and Infrastructure committee chairs Wayne Schmidt (R) House and Tom Casperson (R) Senate would serve their constituents and all Michigan motorist well by pushing legislation that would outlaw any further diversions of Gasoline Tax monies from roads, bridges and infrastructure. Unfortunately these two seem more concerned about “Horse Trading” with politically well connected real estate developers.

http://www.detroitnews.com/article/20140213/METRO05/302130103/Michigan-ranks-last-per-capita-spending-roads-bridges

There is a clear pattern of history here of transferring  “stealing” our road tax dollars for other unspecified state spending projects by our elected officials. And our legislators have the gull to propose new taxes on the citizens of Michigan as to repair our roads! Just say no to any new road taxes!

Republican Senate Majority leader Randy Richardville gave a legislative update to the Monroe Chamber of Commerce on Friday, January 10 2014. When he was through giving this update he opened up the floor for questions.

The very first question asked from a chamber member was, there is a lot of talk about a gas tax increase and vehicle registration fee increases coming out of Lansing will we be seeing this in 2014.

Mr. Richardville responded that we will see some sort of “re-alignment” in the gas tax structure but not until after the 2014 elections! Hmmm…I would say that is code word for “yes” we will see a gas tax and vehicle registration fee increase and you can take that to the banksters who donate to their campaign coffers!

2003 “Forgive” Mackinac Bridge Authority Taxpayer Loan

At a time when the state is struggling to repair its crumbling roads, this bill and the others in the Mackinac Bridge bill package would take more than $5 million away from repairing Michigan’s roads and bridges. Further, the bills in this package would forgive a combined debt of over $65 million owed to the state (we the taxpayers) in restricted funds that are used to fix our roads.”

Fast forward to 2014 and guess what Michigan taxpayers “the chickens have come home to roost” and you Mr. and Mrs. Taxpayers of Michigan are now on the hook for fixing this problem perpetrated on the taxpayers of Michigan by the very “thieves” we have elected to serve us!

2003 House Bill 4627 Introduced by Rep. Tom Casperson (R) on May 6, 2003, to forgive state loans to the Mackinac Bridge Authority.
http://www.michiganvotes.org/2003-HB-4627

Fiscal Analysis – MACKINAC BRIDGE AUTHORITY LEGISLATION
HB 4627 (H-1) would amend Section 7 of 1952 PA 214 (the Mackinac Bridge Authority’s authorizing statute) the bill would forgive certain “advances” made to the Mackinac Bridge Authority in the Motor Fuel Tax Act – effectively from the Michigan Transportation Fund (MTF).

Tom Casperson 38th district

As of September 30, 2002, there remained an unpaid balance of $53.2 million associated with this advance. Subsection 5 of the bill indicates that this advance is repaid or forgiven effective March 1, 2003.
http://www.legislature.mi.gov/documents/2003-2004/billanalysis/House/pdf/2003-HFA-0464-x3.pdf

A very small legislative sampling of how our road tax money is shifted below and there are many others.

Transfer road tax money to other purposes (Senate Roll Call 539) All Senate Republicans voted in favor to reduce the amount of infrastructure project spending from the transportation economic development fund by $12 million in the Fiscal Year that ends Sept. 30, 2009, and another $12 million in the next fiscal year. House Bill 5073 diverts this money to other state spending that was Signed into law by then Gov. Jennifer Granholm on November 3, 2009.
http://www.michiganvotes.org/RollCall.aspx?ID=423745

Transfer road tax money to other purposes (Senate Roll Call 404) All Senate Republicans but one voted in favor to transfer $5.7 million from the state “Comprehensive Transportation Fund” (from which subsidies to public transportation systems are paid), and use the money instead to avoid reductions in non-transportation state spending in the 2009-2010 fiscal year. See also House Bill 5679 (which transfers money from another source into the CTF). This one was Signed into law by then Gov. Jennifer Granholm on September 17, 2010. 
http://michiganvotes.org/RollCall.aspx?ID=505897

2011 Senate Bill 411: Create “DRIC/NITC” bridge authority Introduced by Sen. Randy Richardville (R) on June 7, 2011, to “revise” the state road tax “allocation” law to “accommodate” the authority proposed by Senate Bill 410 to build a new bridge between Detroit and Windsor (the “Detroit River International Crossing” or “New International Trade Crossing,” a.k.a. “DRIC” or “NITC”). This would essentially take road fund monies away from our roads and transfer those monies to this new government authority! AKA, BIGGER GOVERNMENT!
http://michiganvotes.org/2011-SB-411

All About Michigan’s Road Funding and the Recently Proposed “Gas Tax” Increase
http://bainreport.wordpress.com/2013/02/04/all-about-michigans-road-funding-and-the-recently-proposed-gas-tax-increase/

Michigan Road Tax Investigation: Snyder, State Legislators Ignoring State Law and Continue to “Gouge” Michigan Motorists on Gas Taxes
http://bainreport.wordpress.com/2013/09/26/michigan-road-tax-investigation-snyder-state-legislators-ignoring-state-law-and-continue-to-gouge-michigan-motorists-on-gas-taxes/

Detroit News Road Report