Sunday, December 15, 2013

DFP: How Detroit went broke

The Detroit Free Press published a good story in September, How Detroit Went Broke: The answers may surprise you.  This story might be relevant, as Chokwe is importing Detroit talent into Jackson government. Enjoy.

Detroit is broke, but it didn’t have to be. An in-depth Free Press analysis of the city’s financial history back to the 1950s shows that its elected officials and others charged with managing its finances repeatedly failed — or refused — to make the tough economic and political decisions that might have saved the city from financial ruin.

Instead, amid a huge exodus of residents, plummeting tax revenues and skyrocketing home abandonment, Detroit’s leaders engaged in a billion-dollar borrowing binge, created new taxes and failed to cut expenses when they needed to. Simultaneously, they gifted workers and retirees with generous bonuses. And under pressure from unions and, sometimes, arbitrators, they failed to cut health care benefits — saddling the city with staggering costs that today threaten the safety and quality of life of people who live here.

The numbers, most from records deeply buried in the public library, lay waste to misconceptions about the roots of Detroit’s economic crisis. For critics who want to blame Mayor Coleman Young for starting this mess, think again. The mayor’s sometimes fiery rhetoric may have contributed to metro Detroit’s racial divide, but he was an astute money manager who recognized, early on, the challenges the city faced and began slashing staff and spending to address them. .... Article


20 comments:

Anonymous said...

I remember chokwe appointing one person from Detroit to a position, but how many people from Detroit has he appointed to positions in our city government, what are those positions, and what powers do those positions carry? Just trying to get a full picture of the story.

Anonymous said...

Wall Street not only profited from the failed pension
restructuring gambit, but from various bonds issues
Sold to the city. The real cost of Wall Street's
deals is a lot higher than reported.

Anonymous said...

How can I get a copy of Tate Reeves' "transparent" budget? Is it transparent or invisible? Is it online?

Anonymous said...

One Detroiter is too many.

Kingfish said...

The Street Committee says more on the way.

Anonymous said...

It is an international true story but you can't find a better account of how the big financiers feast on debtors heading down the swirling money drain than Paul Blustein's And the Money Kept Rolling In (and Out). Read that book then think about how the Malachi types are screwing over the cities and counties in Mississippi populated by leadership dolts who don't have the remotest of clues as to the future financial disasters they are creating.

Anonymous said...

What is the street committee. And what other detroiters hold positions in Jackson government, what are their positions, and what do they have authority to do under those positions?

Anonymous said...

county administrator of hinds is another Detroit disciple.

Anonymous said...

Very informative article, KF.
I hope your readers will actually read it.

Rewarding your supporters and hoping to buy loyalty/votes is one of the things that got out of control.

That Wall Street touted Detroit as being fiscally well positioned when it clearly wasn't, is also quite interesting.

I'm glad one corrupt politician is going to jail but sadly, it's more often a matter of " getting mine while I can and to hell with the consequences in the future". Political office becomes a license to legally steal.

Anonymous said...

Chokwe has already sent this city on a dangerous path. He and the mindless city council have adopted an irresponsible bloated budget that could haunt the City of Jackson for many years. In fact, this could be the beginning of the end of any chance that the city has of being turned around. I'm glad Chokwe has momentarily checked his racists behavior, but I'm concerned that he is totally out of his depth. He has surrounded himself with folks that know nothing of economic development or routine matters of governance. It's only a matter of time before they all lament the day they casts votes for this guy.

Anonymous said...

I would take a minute to defend Mayor Chokwe, at least so far. I didnt vote for him in any of his elections, but I must say that so far he is getting things done -- some good, some less so. He tore down all of the old shotgun houses that were burned up on Farish Street and has torn down abandoned houses on a number of other properties all over Jackson. He has rid the govt of the foot-draggers and is getting things finished, not just started. He addressed the issue of the street repair tax and is putting it up for a vote. I hope he doesnt regress by hiring the failed Detroit crowd, but so far he is much better than I expected.

Anonymous said...

Chuckie has also implemented some massive tax increases. Wait till next year when the supposed one year property tax bump becomes permanent.

Anonymous said...

@ 3:24. I'm glad to see the shot gun houses gone too, but the fact is they were owned by Chokwe's former law partner Harvey Freelon. The mayor just greased the skids so that Freelon could partner with Charter Development to build a low income housing project. Just what Jackson needs; another downtown slum. In15 years you won't know the new projects from the old shot gun houses.

Anonymous said...

4:41 keep dreamin yo negative thoughts. There is no one year property tax bump. If you tell a lie enough times, some people will believe it. Alinsky play book.

Anonymous said...

City of Jackson millage increased. You obviously don't know jack shit. Or, maybe you're a loser who doesn't own any property in Jackson. Or maybe both.

Anonymous said...

3:52 I may not know "jack shit" but I do know that the milleage increase was not that at all. The city simply kept the part of the mileage that JPS nwas supposed to get b/c of the bond referendum.

Next year the taxes will be the same, but the city won't get that part. True, the city could have refunded the overage, but elected not to and I would agree. (See crumbling pipes and shitty roads)

Keep up!

Anonymous said...

The city is not simply keeping the JPS overage as the JPS millage was decreased. The city millage was increased a commensurate rate to the JPS decrease. Next year Lumumba will cry a sob story and not rescind the city increase because he is growing the size of Jackson government beyond that level servicable by the previous millage rate. The actual millage rates changed for this bait-and-switch but your head is buried so far up your ass you don't know the difference.

Anonymous said...

"The problem with idiots is they know so much that simply isn't true" Ronald Reagan

Anonymous said...

"you're a loser who doesn't own any property in Jackson"

So, "doesn't own property in " = "loser".

Okaaaaaaaay - seems like there's a Bobby Bare song that would be perfectly appropriate to insert here for all you self-proclaimed "winners", but the irony and sarcasm would surely go over your pointed little head.

Anonymous said...

5:22 I hope CL does just that. We need the money. Also, read 5:54. Mirror, meet 5:22.


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Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

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In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


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This is definitely a Beaver production.


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Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

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If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

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