Democrats Officially Run Detroit Into The Ground, City Files For Bankruptcy… Courtesy of the Democratic party. Via WaPo: Detroit filed the largest municipal bankruptcy in the nation’s history Thursday afternoon, capping a long decline that left the nation’s automaking capital bleeding residents and revenue, while rendering city services a mess. The nation’s fourth-largest city in the 1950s with nearly 2 million residents, the city has seen its populaton plummet to 700,000 as residents fled increasing crime and deteriorating sevices, taking their tax dollars with them. The five-decade slide has left the city owing creditors some $19 billion and under the control of a state-appointed emergency manager. The manager has been negotiating with creditors from bond holders to pensioners to forge a plan to restructure the debt. But an agreement proved elusive as pensioners objected to benefit cuts and bond holders and insurers pressed the city to sell off assets to repay money the city borrowed to fund improvements and plug deficits. Earlier this week, lawyers for the city’s two pension funds filed suit seeking to block Michigan Gov. Rick Snyder from authorizing a bankruptcy filing. Now, the efforts to restructure Detroit’s staggering debt will play out under the supervision of a federal bankruptcy judge, a process that could take years. The city’s massive debt is matched only by a devastating loss of revenue and residents — a long-term condition that has escalated in recent years.
The city of Detroit was mortally wounded in 1967 when riots occurred. So began the "white flight" and the city began circling the bowl.
Build a 100' high fence around it. Pump a couple thousand volts through it. Turn it into a federal prison a la " Escape from New York ".
The Next Detroit? Rahm’s Chicago Bond Rating Downgraded Like dominoes, the bloated Democratic cities start to fall. Via Breitbart: On the eve of Detroit filing the largest municipal bankruptcy in American history, Rahm Emanuel’s Chicago had its bond rating downgraded by Moody’s Investor Services. Moody’s summarized the following weaknesses contributing to the city’s downgrade: • Extremely underfunded pension plans: actuaries of the city’s four pension plans reported a total unfunded actuarial accrued liability (UAAL) of $19 billion as of December 31, 2012; using more conservative assumptions, Moody’s calculates an ANPL of $36 billion • The city’s contributions to the pension plans remain well below a rapidly increasing annual required contribution (ARC); in 2012 alone, the city underfunded its ARC by more than $1 billion • By 2015, state legislation will require the city to increase contributions to its public safety pension plans; the city projects its pension contributions will increase from $467 million in 2014 to $1.2 billion in 2015, placing tremendous strain on the city’s operating budget • The Illinois Constitution’s explicit protection of pension benefits all but ensures that any attempt to reduce the benefits of existing members would face litigation • Limited political appetite for tax hikes that would improve pension funding • Elevated debt levels, even without factoring in pension obligations http://www.breitbart.com/Big-Government/2013/07/19/New-Detroit-Rahm-s-Chicago-Bond-Rating-Downgraded-by-Moody-s
Detroit's Failure Not Due To Lack Of Government Staffers, Overstaffed Compared To Comparable Cities But I thought the government would provide? Why is this not working? Via Detroit News: Detroit —Detroit’s work force hasn’t shrunk with its population, leaving the cash-strapped city with far more employees than most comparably sized cities. The 12,900 workers in the Bing budget proposed this month is much more than similar size Midwestern cities including Indianapolis and Columbus, Ohio, and double much more populous cities including San Jose, Calif. Bing has resisted calls for mass layoffs, saying Detroit’s population exodus in the past 10 years was fueled in part by shrinking services. The mayor said he owes it to residents to focus on the city’s long-term viability and fix structural changes like pension and medical costs that threaten to consume half the budget by 2015.
Obama To Detroit: Drop Dead Oopsie, guess he’s not too “dishonored” by letting Detroit fail. I thought he said during campaign with Romney that he would never let Detroit go bankrupt. I guess it just isn’t that important to Valerie Jarrett any more… Via The American Interest: Detroit, one of the 20th century’s great American cities, is now almost certain to stagger through the early 21st century in Chapter 9 bankruptcy. The WSJ reports that the chances of out-of-court settlement are scant. Emergency manager Kevyn Orr is unlikely to reach agreements with enough of Detroit’s bondholders and pension funds to restructure the city’s debt: Mr. Orr “has taken such a hard line with creditors that a bankruptcy filing is inevitable,” [research advisory director Matt] Fabian said. […] A “free fall” bankruptcy filing—one without a clear plan or much agreement beforehand with creditors—is a likely outcome. Buried in the middle of the report is a telling climax to this sorry tragedy: Any hope of a federal bailout to avert bankruptcy fizzled last week after Mr. Orr spoke with the White House, including Obama confidante Valerie Jarrett, according to city and White House officials. This is where blue governance has brought Detroit in the end: not even a liberal Democratic administration will step in to save the pensions of thousands of public workers and African Americans, condemning countless innocents to having their pensions and health benefits gutted in bankruptcy court. http://blogs.the-american-interest.com/wrm/2013/07/18/obama-to-detroit-drop-dead/
Detroit Plans To Get Itself Out Of Bankruptcy By Forcing Its Retired Union Employees Into Obamacare… Shockingly, Detroit’s retirees aren’t happy with this (even though their union spent countless millions telling us how awesome Obamacare will be). Via NY Times: As Detroit enters the federal bankruptcy process, the city is proposing a controversial plan for paring some of the $5.7 billion it owes in retiree health costs: pushing many of those too young to qualify for Medicare out of city-run coverage and into the new insurance markets that will soon be operating under the Obama health care law. Officials say the plan would be part of a broader effort to save Detroit tens of millions of dollars in health costs each year, a major element in a restructuring package that must be approved by a bankruptcy judge. It is being watched closely by municipal leaders around the nation, many of whom complain of mounting, unsustainable prices for the health care promised to retired city workers. Similar proposals that could shift public sector retirees into the new insurance markets, called exchanges, are already being planned or contemplated in places like Chicago; Sheboygan County, Wis.; and Stockton, Calif. While large employers that eliminate health benefits for full-time workers can be penalized under the health care law, retirees are a different matter. “There’s fear and panic about what this means,” said Michael Underwood, 62, who retired from the Chicago Police Department after 30 years and has diabetes and Parkinson’s disease. Mr. Underwood, who says he began working for the city when employees did not pay into future Medicare coverage, is part of a group suing Chicago over its plan to phase many retirees out of city coverage during the next three and a half years. “I was promised health care for myself and my wife for life,” he said. http://www.nytimes.com/2013/07/29/us/detroit-looks-to-health-law-to-ease-costs.html?partner=rss&emc=rss&_r=2&
Bloomberg: New York City Could Face The Same Fate As Detroit Hence the reason it is slightly more important to concentrate on solving the real problems of the city and nanny around after how much soda people are drinking… Via NY Post: New York City could face the same dire fiscal situation as Detroit unless the next mayor gets realistic with municipal unions and reins in soaring pension and health-care costs, Mayor Bloomberg warned yesterday. “Avoiding the hard choices is how Detroit went bankrupt,” the mayor declared in a speech in Brooklyn. With less than five months left in his term, Bloomberg hailed the city’s diverse revenue base while cautioning that the contracts the next mayor signs with municipal unions could determine the city’s fate for the near future. The mayor reminded his audience that Chicago laid off 2,100 teachers and school employees last month, in large part because of soaring pension costs. http://www.nypost.com/p/news/local/mike_detroit_alarm_ixf4cWxI4SV12oVO1Q6X1H
We all remember the Chicago teachers strike last year. They were demanding a hefty pay raise. Well now the district has to cut teachers, hurting the kid's education. But hey, these devoted teachers weren't that into the kids anyway.
Yeah...hell yeah.... screw those teachers. Hey....what about those sinking math grades in NY?? Ah...who cares? This is America by God and we're frigging broke.... Here's the answer for NY.... - cut the pensions - fire the teachers - cut the budget for learning materials etc. - hire Gen Ed degreed teachers instead and pay them minimium wage - and by all means install tax cuts.... generous tax cuts for the wealthiest New Yorkers because somehow... some way.... don't ask me how..... that would surely fix the problem.... :wink:
The average salary for teachers in NY is well over 70,000 and there are benefits such as medical and pension. In NYC teachers top out over 100,000. And what are the taxpayers of NY getting for that? 26% of the students passed the state reading test. Maybe if they paid teachers more they'd be motivated enough to get that percentage up to 33%. They turn out illiterate, uneducated morons who end up living with their parents and going nowhere. The teachers on the other hand have a union that collects dues from them to fund the campaigns of Democratic politicians who when elected "negotiate" salaries with the teacher's unions. No one cares whether or not the taxpayers will be able to afford these ever escalating pensions. Who cares? "We'll just keep raising taxes and fattening our wallets. Screw the taxpayers. After all those idiots think that if they pay more money they'll actually get better teachers. Guess they weren't too bright in that generation either." So there you have it. Teachers in bed with the Democratic party turning out morons that because they're helpless think that they should vote for the Democratic party. Somehow if we raise taxes on the rich, students will be able to read in this system. :roll:
NYC is one hell of an expensive place to live.... I've spent 180 nights myself in Manhattan over the years so I know. Take a well educated kid out of college with an assload of college loans to pay back and try and keep him out of the public sector and have him opt for teaching school in NYC instead and see if reduced salaries and cut pensions get his/her attention. Pretty good money now though for a teacher.... even the 70k in the rest of NY state. My son starts at 40K here in Fla and 70 is probably top end toward the end of a long career. And really.....seriously..... 70 K for a kid with a masters degree in math is **** for compensation.
When I taught school I worked during the summer. I did everything from private tutoring to being a night janitor in the Air France terminal at Kennedy airport. I don't know one teacher who works another job in the summer these days. They just enjoy the summer and complain about their pay.
73% of my property taxes go to the TWO boards of education who run the town I live in. In my case I have no kids in school but pay about $6500.00 per year to educate others. We have over 500 BOEs in New Jersey, a small state of 21 counties. Overhead is out of control. We have a total population Howell of 52,000. To service the school age clientele we have eight K-6 schools, three middle schools and one HS. Some of the schools have entire wings closed because they do not have the kids to fill them. Teacher hear earn anywhere from $45,000 up into the $90,000s. All the schools are top heavy with "management" earning from the $90,000s to the $150,000s. Test scores are flat to declining year over year. Now when you consider that they are off from mid-June to early September and for every holiday known to man plus extended Christmas and Spring breaks, I'd say they have it pretty damn good.
When my son is qualified to move in to management I would say he needs to be Jersey bound! Thanks for the info!
In this state, there's really 2 realities regarding education. I find that so odd because the AEA runs this state, you'd think they would at least take care of their own.. but they don't. Perhaps it's an oversimplification, but this is the best way to look at it. You have 'city' teachers and 'county' teachers. They are all AEA, but the AEA does not protect all of them evenly. For the most part (and by that I mean roughly 97% of the time) the city teachers are rather well paid and they have the awesome state insurance/benefits package. The county teachers are paid much less, they don't have the automatic trigger raises and they may not even have the awesome state insurance/benefit package. Whenever election time rolls around, the city teachers hide behind the plight of the county teachers. It's facts. You can't refute it. Here we have teachers making $25k with shitty benefits, hard hours, overflowing classrooms and they work on annual contracts with little to no hope of tenure. Meanwhile, we have city teachers who start at about 29k, but quickly rise to the mid30s with most of them in the 40 to 50k range. Keep in mind, I live in a state in which a 30k a year job goes a long way to making ends meet. These teachers are driving new $35,000 cars and live in homes that run from $150k to $250k. (again, keep in mind that a $200k home here is a really, really nice home in an 'affluent' neighborhood. You're right there with the judges, lawyers and doctors. So people rally around the flag and they invoke images similar to what Dave refers to, and people run to the polls to save education. Meanwhile, the reality is that they never do take care of the county education system because that's where 'blacks, Mexicans and poor white people' are... but the city teachers all get fat.. literally.
Can't imagine a 35K car bought with a 35K salary. House payments are house payments and car payments are car payments no matter where you are. In any event it sounds like Florida teachers are a little better off than Alabama teachers in general salary wise but the COL here is probably higher. I still see mostly generalized statements when it comes to opinions of teachers and it's just wrong to think that way.... good or bad. I see terms like "they" used all too often. Saying "they" like to be greedy and lazy is just ********. That's like saying all NFL players are murderous thugs just because Aaron Hernandez is a muderous thug.
Stu.... "they" all follow Rush Limbaugh and Fox News correct? I know that's true cause I saw a parody of that on Family Guy..... :lol: