Showing posts with label Michigan. Show all posts
Showing posts with label Michigan. Show all posts

A Clarification

Now that my post 'The Bullies Organize' has moved into the top five most-viewed posts on this blog, I just want to clarify something.  I was not the one to call seniors 'bullies'.  That was Nolan Finley's term in the Detroit News.  Please see my blog titled 'Who's the Bully?' on March 6.  Or read the editorial opinion yourself.

Who's the Bully?

OK.  I got all the way to page 25A, from page 17A, in the last twenty minutes.  You know, I should have just started a fire with the newspaper.  Or went out and bought a birdcage with bird attached.

Enter the Detroit News Editorial Editor Nolan Finley.  'Grit needed to win budget fight'.

Mr. Finley refers to senior citizens as 'the biggest lobbying bully'

Wow.  I said the other say that I had been called worse things than a sissy.  Actually, I had another 'B' word in mind, but now I guess I can add a new 'B' word.  He says we are raising 'holy hell'

OMG.  My rebellious college days must be coming back.  Is there an SDS rally scheduled somewhere?  (My sociology class had to attend one at Wayne when I was there.)

Mr. Finley goes on to say that the Governor's 'got to get all 26 GOP senators in a small room and bang on them until they're straightened out'. 

A double OMG.  What is this?  The reincarnation of some long lost dictator? 

The other day a friend of mine said that when she and her husband were in college all the journalism majors were the campus pot-heads.  I'm beginning to think she is right.  They must be smokin' somethin'.  How else to explain calling seniors 'bullies' while telling the Governor to bully the legislators?  OMG.

Let me make this perfectly clear

NO. No. A thousand times NO.  Nyet. Nein. Non.  Nie.  Got it?

I have been asked by several people if I am going to attend the State training for Emergency Financial Managers.  See answer above.

I guess some folks just cannot imagine that I am happy not working in finance.  Or working at all for that matter. 

For those who don't know it, I know how to do nothing.  (Witness this blog as proof.)  Some people think I did nothing for the 20 years I was in office.  (Just ask my opponents.)  Not true.  It was a 24-7 job.  So, now, I am enjoying not having a schedule to follow, reports to be made, places to be and things to do.  Unless I make the decision to do so.

We Americans think we have to go, go, go all the time.  I have some Italian cousins who came to Canada and after a short time decided to return to Italy to live.  Why?  Canadians, like Americans, feel like the wheels always have to be turning.  No after lunch breaks when the shops shut down.

Frankly, I like the European style of a leisurely lunch and rest after.  Growing up we always had holiday meals in the early afternoon and a lighter snack in the evening.  I tried that once a few years ago when I scheduled dinner for 4:00 pm instead of the usual 2:00 and my sons acted like I was starving them during the wait.

Life is not a race to the finish line.  Every day does not need to be crammed with something to do.  Yes, when we are young and building a career and raising our family, that is usually the case out of necessity.  But at some point, we need to sit back and enjoy.  Smell the roses.  Shoo the deer out of the yard.  Watch the snow fall and let it sit in the drive.  Read a book.  Anything...

Or run errands.  Ciao.

Spoofing Michigan

The Oakland Press ran a story this morning about spoofs of the 'Pure Michigan' commercials.  One of my sons told me about these videos last summer and I have to say, as a former boater on Lake St. Clair, the fish-fly commercial was really funny.

This morning I went online to see the latest and found one on winter. There is offensive language, but it speaks the truth.

Embracing Technology

Good for Governor Rick Snyder!  He has decided that the item pricing law needs to be scrapped.  It is redundant in a world of UPCs and computer technology.  And not only am I pumping my own gas, I am ringing up my own groceries and bagging them!

I understand that consumers' rights groups say that some of us get taken by not having items marked individually.  And I agree.  In the last two weeks I had two instances of having items rung up at the wrong amount.  One was clearly marked with a lower price, but ran incorrectly and had to be adjusted.  One item had a sale price on the shelf, but rang up for full-price at the register.  It was adjusted to the lower price even though the shelf price was out-dated and had not been removed. 

Now, it is quite possible that even labeled and rung incorrectly, I may never had noticed the errors.  How many people actually check every item?  I do not.  I just happened to catch these two.  But what does it cost to put all these labels on items?  And am I not paying for that cost when I shop?

Doing my Christmas shopping I bought several items for gifts with labels on them.  When I got home, I discovered that removing the labels was next to impossible. It appeared that they had been super-glued to the items.  I later learned that the store had changed to the non-removable labels because folks would switch labels and then argue with the cashier when the items were rung up based on the UPC price.  And who can forget the women who were arrested for changing prices in a store with their own price-gun?

The product price law is an idea whose time has come and gone.  I'll rely on the UPC and hope for the best versus ending up with a price tag that may belong to a different item.

As for the store that gave me the out-dated sale price, it was nice of them.  But now they are losing money and that will cost customers more in the future. 

As for the people who will lose jobs pricing cans in the supermarket, maybe we can train them as cashiers so that folks who cannot figure out how to ring up their own groceries (drives me nuts) can have someone else do it for them.

Finally, A Report

For a very long time I have had the practice of not sitting on committees that do not get something done.  I do not need to go to meetings to just sit around and talk about what someone else is doing.  I have left committee positions when that has occurred.

This past May I had a meeting to talk about the possible default on debt payments by local communities with a member of the Senate Fiscal Agency (SFA) and the Executive Director of the Michigan Government Finance Officers Association (MGFOA).  The end result was the creation of a committee by the MGFOA to work with the SFA and look at the debt situation.

We made our presentation in October to the SFA and will present it to the MGFOA at their March meeting.  And finally, the written report itself will be issued today.

There have been many premature articles in Bloomberg and the WSJ since the project started.  Here is the one from the Bond Buyer on the final report.

Our committee will continue to meet to look at some legislative issues and come up with suggestions to alleviate future occurrences of the problem.  We need changes in Michigan and I am sure some of them will be unwelcome.  But what is obvious to me is that we cannot continue to conduct local 'business as usual' anymore.  Local government units cannot borrow their way to prosperity, anymore than local residents can.

Getting to the Bottom Line

A lot has been said and continues to be said about the adoption of a State Budget by July 1.  This is a good idea.  It means that when the State's new fiscal year begins on October 1, departments and legislators know exactly what the numbers are.  It virtually eliminates the chance for a government shut down.  Would that the same scenario could be said in Townships.

For fifteen of the twenty-one budgets I was involved with at West Bloomfield Township, the budget was required to be done sixty days prior to the start of the fiscal year.  In 2003, the law was changed to require a budget be prepared and adopted by December 31.

For West Bloomfield, which starts its fiscal year on January 1, this cuts the adoption really close.  For the majority of townships in Michigan, the fiscal year begins on April 1 (such is the case with Bloomfield Township).  Adopting a budget by December 1 means that they have to adopt a budget earlier than before. 

I have tried to make sense of how and why this passed, but have never been able to do so.  Some of the sponsoring legislators had townships with January 1 dates and others with April 1.  It meant that all would have a longer time to prepare their budgets, but that those communities with January 1 years would be cutting it pretty close.  And since tax rates are set in October, communities already have pretty solid tax revenue numbers to work with.  The State budget has been set so that revenue sharing numbers, while estimated, are still pretty solid. 

The law requires that Township Department Heads submit their budget requests 150 days prior to the start of the fiscal year and that the Supervisor submit a budget to the Township Board no later than 120 days prior to the fiscal year.  That gave Township Boards prior to the law change at least two months to approve budgets and adopt them. 

No matter the change in the law, there is nothing stopping Townships from adopting their budgets in a timely manner, well in advance of the start of the fiscal year.  Let's hope that our Legislators in Lansing do the same.

Looking at the World with Blinders On

Hamtramck, Royal Oak Township, Pontiac.  I could go on and on.  What will it take for our state to realize that they can no longer function with so many separate communities trying to provide their own services?

Yesterday's Detroit Free Press had an editorial called 'It's Crunch Time'.  No, they were not talking about your morning cereal.  They were talking about how we operate as a state with reduced incomes.

I do not believe we should be waiting for a community to be run by an Emergency Financial Manager (EFM) before making changes.  It's too late by then and takes too long to fix the problem.  We need to start changing before the EFM is called in and the community is placed on 'life support'.  If one of these communities actually is allowed to file for bankruptcy, the entire state will be affected.

I hope that someone in the new administration dusts off the report to Jennifer Granholm on Fiscal Services.  It is dated 2006.  Among the suggestions was to move assessing functions to the county level.  Makes a lot of sense to me. 

And while we are at it, let's move tax collection and elections there as well.  We are no longer living in the nineteenth century, but we still operate as though we do.  (Hello, Michigan Townships Association (MTA).  Get with the new century!) 

Why should the local tax collector collect the tax, then pay the county and each individual school district, and then the county pays the state, and then the local settles with the county, who then collects delinquent taxes?  In other states, all taxes are collected and distributed at the county level. And despite what the MTA says, it is not really so cool to drop your taxes off at the local tax collector's home and then sit and have a cup of coffee, as may be done in the small rural townships. They have the US mail service there too.
If we can't get rid of these 1,242 township governments, the let's change the laws regarding who does what.  I have long said and even testified in Lansing that we need to get rid of townships, so this is nothing new for me. 

Michigan can start rethinking about how it does the business of the state, or it can continue its decline.  Those rose-colored glasses are turning into blinders and we need to make some changes.  And soon.

Updates

1. Update 9/21/2010:  Let's 'Do the Math.'

Back to my blog about the Ponzi scheme.  I give you 250,000 for an investment lasting roughly 420 days based on a 360 day calendar year.  I earn 10,323 in interest.  My effective yield is 3.54%.  Really?  Banks were paying that in 2009? 

My internet search did not show me historical CD offering rates, although I am sure they exist someplace.  But I do know that when I left government in November, 2008, rates were not that high.  And they sure were not going up in 2009.  A 'red flag' anyone?

2.  Update 9/22/2010:  More Interviews

The West Bloomfield Township Board now has six candidate interviews for Police Chief on three different days, but no names are shown.  You can check the agendas online.

3.  Update 9/17/2010:  Just keep rolling along

Another bill was introduced affecting local government.  If enacted, HB 6464, which is tie-barred to HB 6465, would place new requirements on local units when they adopt and amend their budgets.  No provision for funding the mandate, of course.  Why worry about Headlee provisions?  Units not complying would lose state shared revenue.  

Actually, I think this bill should be tie-barred to SB 1464.  That one adds 'giant hogweed' to the definition of noxious weeds.  I could come up with some good descriptions of 'giant hogweeds'.  You know.  The term-limited kind?

4. Update 9/11/2010  Not prime-time for me

Seems like the voters in Michigan can make the popcorn and watch our gubernatorial candidates debate.  Well, count me out.  Do I really need to hear this?  I think not.

5.  Update 8/27/2010  Making Music?

Still no settlement between the DSO and the musicians.  Unfortunately, this is a business with a product that fewer people are willing to buy.  And in that case, you do what you have to do to stay in business.  They all understand that, right?  If not, my CDs are ready to spin.

Violating a Public Trust

Update:  Jan, 2011  Latest news on Dante DeMiro

A Columbia Township investment of $100,000 for ten years, a Mona Shores Public Schools investment of $3.5 million from the school improvement bond fund, a Comstock Township investment of $1.75 million in certificate of deposits and a Lapeer County investment of $750,000. 

Unless you live on the west side of the state or follow financial news in the municipal world, you may have missed the news of the FBI criminal complaint against Dante DeMiro of MuniVest Financial Group in Southfield. 

I have listed the FBI complaint below, but as a former financial professional, I can say this:  If you are dealing with a broker, make sure you are holding your municipal certificates and securities in a third party safekeeping account in your name.  And if you don't understand what I just said, then you probably should not be investing public money.

TIMELINE OF PONZI SCHEME AS OUTLINED IN FBI CRIMINAL COMPLAINT

March 9, 2009

• Lapeer County transfers $750,000 to Dante DeMiro’s MuniVest Financial Group for the purchase of CDs from three banks.

March 11, 2009

• MuniVest check for $600,000 sent to Universal Jewelry & Watch Repair in Birmingham. FBI later determines MuniVest account couldn’t cover the check until the Lapeer County funds had been deposited.

April 2009

• Comstock Township transfers $1.75 million to MuniVest for the purchase of CDs from seven banks.

• United Service Credit Union in Des Moines, Iowa, transfers $396,000 to MuniVest for the purchase of CDs from four banks.

• Lapeer County transfers another $250,000 to MuniVest for purchase of one CD.

• DeMiro sends $1.16 million check to Boiler Makers Local 169 in Allen Park with “refunding principal and interest” in the memo line. FBI alleges account the check was drawn from had only $187,000 prior to the transfers from Comstock Township, Lapeer County and United Service Credit Union.

August 2009

• Mona Shores transfers $3.48 million to MuniVest for the purchase of CDs.

January 2010

• DeMiro tells Comstock Township that one of its CDs had matured and sends it $255,122 as principal and interest. FBI alleges the money came from funds transferred by Mona Shores.

May 2010

• DeMiro sends $250,000 to Comstock Township for a second CD he says has matured. DeMiro also sends $260,323 to Lapeer County for a CD he says has matured. FBI alleges those payments came from Mona Shores’ funds.

Sept. 9, 2010

• FBI informs Mona Shores officials of its investigation of DeMiro.

Sept. 15, 2010

• FBI files criminal complaint against DeMiro in U.S. District Court for the Eastern District of Michigan alleging he violated federal bank fraud statute and federal wire fraud statute.

Sept. 16, 2010

• DeMiro appears in U.S. District Court on FBI criminal complaint and is released on $10,000 bond.

Source: U.S. District Court filing

Bills that Shouldn't even be Necessary

HB 6443

A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending section 32729 (MCL 324.32729), as added by 2008 PA 185.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 32729. (1) Except as specifically authorized under this part, this part does not authorize the assessment of fees.

(2) THE STATE OR A LOCAL UNIT OF GOVERNMENT SHALL NOT IMPOSE ANY TAXES ON GROUNDWATER WITHDRAWALS FROM WATER WELLS. (added)

No wonder some folks refer to lawmakers as 'money-grabbing you know whats'.

The Public Sector

Seems like a week does not go by without a letter to the editor or a story about how teachers, firefighters, police and all government employees should lose wages and benefits because someone in the private sector has lost theirs.  The contention is that these people are all over-paid and some suggest they have 'cushy' jobs.  Which makes me wonder why the letter writers did not opt for the public sector.

We all make career choices.  We all make choices about furthering our education.  Teachers and professional employees do not enter the work force at eighteen years of age fresh out of high school (as did many people I knew in the neighborhood I grew up in).  Many leave college with mountains of debt and four or five years of lost wages, to boot.

A report last year from Charles Ballard at Michigan State University was dissed by many people when it came out.  Now, a report from the Bureau of Labor Statistics comes to the same conclusion as Professor Ballard:


BLS Reports on Employer Costs for Employee Compensation

On March 10, 2010, the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) issued its report: Employer Costs for Employee Compensation – December 2009. According to the BLS, at the end of 2009, employers in private industry paid employees total compensation averaging $27.42 per hour worked, consisting of $19.41 in wages and salaries (71% of the total) and $8.00 in benefits (29% of the total). By comparison, the total compensation costs for state and local government employees averaged $39.60 per hour, consisting of $26.11 in wages and salaries (66%) and $13.49 in benefits (34%).

However, the report warns that the compensation costs of state and local governments should not be directly compared with the costs in private industry due to differences in the occupational structures between the sectors.  The report notes that professional and administrative support occupations account for two-thirds of the state and local government workforce, compared with one-half of the workforce in private industry. 

Moreover, if average compensation costs for the “management, professional, and related” occupational group (which includes teachers) are compared, total compensation is similar for private industry and state and local governments, as shown in the following table:

                                           Employer Costs per Hour Worked
                      Management, Professional & Related Occupational Group
                                                             December 2009

      Private Industry                State & Local Governments 
 Avg. $/hour        % Total                Avg. $/hour         % Total
Wages & salary              $34.12                  71%                   $32.96                    68%
Benefits                             $14.07                  29%                   $15.19                    32%
Total Compensation      $48.19                100%                   $48.15                   100%

Source: U.S. Bureau of Labor Statistics, Employer Costs for Employee Compensation – December 2009. Data compiled by Gabriel Roeder Smith from Tables 4 and 9.

The BLS report is available at: http://op.bna.com/dlrcases.nsf/r?Open=lswr-83elqz

Pure Michigan

"When she was good, she was very very good, but when she was bad she was horrid." - Henry Wadsworth Longfellow

I am looking out my office window at the grey skies for the umpteenth day and thinking that this phrase sums up the weather in our state.  That being said, it really has some wonderful treasures despite the lack of perennial sunshine. 

I am providing the link to the latest Pure Michigan posting.  There you can read about what is happening and sign up for your own emails about events. 

I love vacationing in the state.  There is so much to see and do here and I'm willing to bet that there is a lot many of you have not enjoyed.  So, go to the page and look around.  Visit a winery, choose a new restaurant or camp under the stars.  Pretend you are a tourist from a foreign country.  What would you want to visit?  Bet you could find enough things to fill an entire summer.

And while you are at it, perhaps you could let your local legislator know how much promoting our state and tourism means to you.  Sure seems like Illinois has figured out the importance of tourism with their own 'enjoy Illinois' campaign.

make the t shirts from here

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