Last Friday, Michigan Gov. Rick Snyder, a Republican,
announced that the state will proceed with a takeover of Detroit’s Democratic
city
government. “The current system has not been working. We have not
stopped the decline,” said Snyder. “This is time for us not to argue or
to blame, but to come together as Detroit, Mich., not Detroit vs.
Michigan, and bring all of our resources to bear.” Snyder may not want
to point the finger, but it is obvious that decades of Democratic rule
and economic policies have brought this once great city to its knees.
The move, one step short of declaring municipal
bankruptcy, means Snyder will be appointing an emergency manager with sweeping powers similar to that of a bankruptcy judge. Such
powers include the ability to toss out unaffordable contracts with public
employee unions and vendors, put city assets up for sale,
consolidate or eliminate government departments, make further service cuts, or recommend municipal bankruptcy—all of which can be implemented with little to no input from local elected officials.
Democratic Mayor Dave Bing has a 10-day window to
request
a hearing on the decision. If he does the hearing will take place on
March 12 in Lansing. If the appeal is denied, Snyder will appoint the
manager. As of now that person hasn’t been identified, but the Governor
says he has someone in mind. After 18 months, the emergency manager
would be subject to review by local officials, at which time he could be
removed or replaced.
Mayor Bing sounded like he was leaning towards appeal. “The Governor
has made his decision, and it was his decision alone to make,” said
Bing. “While I respect it, I have said all along that I do not favor an
Emergency Manager for the City of Detroit. I will look at the impact of
the Governor’s decision as well as other options, to determine my next
course of action.”
Democratic politicians and civil rights organizations in a city where the population is
82.7 percent
black were far less sanguine. “For one individual to be able to wipe
out the duties of our duly-elected officials, that’s more or less a
dictatorship, and it’s against everything that America is supposed to be
about,” said the Rev. Wendell Anthony, president of the local NAACP.
The “dictatorship” meme was
echoed
by other Democratic officials. State Rep. Brian Banks, who represents
parts of northeast Detroit, contended the Governor should not have the
largest voice when deciding what’s best for Detroit.” State Sen. Bert
Johnson (D-Highland Park) characterized the appointment of an emergency
manager as “a death in the family.” Activist minister Malik Shabazz
claimed that the “governor and the right wing in Lansing are destroying
democracy and moving us into plutocracy.” And Rev. D. Alexander Bullock,
president of the Detroit Chapter of Rainbow-PUSH, claimed the
development “will add to the growing tension in Michigan.” “We wait to
see if austerity will trump democracy and prosperity,” he added.
What prosperity? Detroit’s downward spiral has been legendary. Once the fourth largest city
in the nation, and home to its largest industry, Detroit’s population
has been cut in half, from 1.5 million in 1970, to less than 700,000 in
2012. Median household income is $27,862 compared to the state median of
$48,669. The poverty level is 36.2 percent compared to a statewide
level of 15.7. The murder rate is
11 times that of New York City,
and the unemployment rate is above 18 percent, more than double the
national average. Detroit Public Schools (DPS) have been under emergency
management since 2008. In late February, the state review board
revealed that the city
faces a short-term cash $327 million budget deficit and an estimated
$14 billion in long-term debt, primarily driven by unfunded pension and
retirement health care obligations.
As a result, the city can’t provide basic services. The Detroit Fire Department is so short of critical resources,
rotating
“brownouts” of fire companies are required. Forty percent of the city’s
street lights are broken. For the past two years, the Bing
administration has slowly adopted a city “triage” system, best
described by the
Detroit Free Press.
“Infrastructure improvements, demolition activity, outdoor maintenance
and development incentives will henceforth be concentrated in a
relatively small number of neighborhoods that boast the high numbers of
owner-occupied homes and little evidence of residential and
commercial blight,” it reports.
To accord with this plan, the city’s 139 square miles have been
broken down
into four categories by Detroit’s Planning and Development Department:
“steady,” as in little blight and a high number of owner-occupied homes;
“transitional,” as in a neighborhood on its way up or down; “varied” as
in some streets are stable and others are not; and “distressed” as in
large amounts of blight, and few amenities, such as grocery stores.
47 percent of the owners of Detroit’s 305,000 properties didn’t pay their property taxes in 2012
Detroit residents have responded in kind. A staggering
47 percent
of the owners of Detroit’s 305,000 properties didn’t pay their property
taxes in 2012. Homeowner Fred Phillips illuminated the frustration many
of those residents feel. “Why pay taxes?” he asks. “Why should I send
them taxes when they aren’t supplying services? It is sickening….Every
time I see the tax bill come, I think about the times we called and
nobody came.”
Yet it’s even worse than that. Detroit has some of the highest big city
property taxes in the nation, and property assessments remain overly
inflated, amounting to as much as ten times the market price of the
property, according to recent research compiled by two Michigan
professors.
This has led to another phenomenon. Property owners are allowing
themselves to be foreclosed upon, and then re-buying the same property
at a reduced price, legally eliminating their outstanding debt in the
process. Six hundred properties were repurchased in this manner in 2012,
triple the number that occurred in 2010.
In short, Detroit is a city on the brink of ruination
In short, Detroit is a city on the brink of ruination. At the center of that ruination is 50 years of Democrat rule. The last Republican Mayor the city had was Louis C. Miriani, who
lost his reelection bid in 1961 and ended up spending 10 years in prison for
tax evasion. Incoming mayor, Democrat Jerome Cavanagh, brought the “Model City”
program—fashioned after Soviet Union centralized efforts to transform
entire urban areas at once—to a nine-square-mile section of the city.
Using a commuter tax and a new income tax as his vehicle, Cavanagh
promised residents “the rich” would pay for it all. Yet because people
were being told by government how to run their businesses and their
lives, in exchange for government goodies, the program ended up failing
spectacularly.
1967 Detroit Race Riot and “white flight”
In 1967, after police broke up a celebration at an after hours club,
an enraged neighborhood began to riot, igniting the worst race riot of
the decade. Black-owned business were looted and burned to the ground.
Forty people were killed and 5,000 were left homeless, and the “white
flight” out of the city center, totaling 140,000 people over an eighteen month period, ensued. The city was never the same.
An unbroken series of Democratic mayors followed, all of whom had a hand in
implementing the full panoply of
progressive
policies, highlighted by the giveaways to public service employees.
Their outlandish salaries and benefit packages, coupled with highly
inefficient work rules, killed the golden goose: the auto industry, and
its attendant industrial community headed South, where lower taxes and
right-to-work rules kept their businesses afloat.
The same swath of progressive policies destroyed the public school
system as well. Perhaps nothing illustrates the corrupting influence of
those policies better than the Detroit Federation of Teachers’ success
in
scuttling a $200 million offer by businessman and philanthropist Robert Thompson to build 15 charter schools in the city in 2003. Ten years later, the Detroit Public School (DPS) system remains a cesspool of failure, corruption and bankruptcy, all of which is chronicled
here.
Considering some of the men who have run this city, Detroit’s descent into socialistic ruination should surprise no one. From 1974 to 1993, Coleman Young, who was subsequently
revealed
to be a member of the Communist Party, was mayor of the city. He failed
to stem Detroit’s descent into chaos, and in 1992 his police chief was
convicted
of stealing $2.6 million from city taxpayers, even as Young defended
him. Michigan’s hard-left U.S. Senator Carl Levin was Young’s chief
supporter, serving as Detroit City Council president.
Kwame Kilpatrick, who served as Mayor from 2002 to 2008, represents the epitome of corruption. In 2008, he
pleaded guilty to two felonies and no contest to a third one, receiving a sentence of 120 days. In 2010, he
received
a five year sentence for probation violations stemming from his
obstruction of justice conviction. Currently Kilpatrick, along with his
father, Bernard Kilpatrick, and his longtime contractor friend Bobby
Ferguson, who got millions of dollars in city work, are
awaiting a jury verdict on racketeering, bribery and tax charges that could send them all to jail for 20 years.
All of these polices and politicians have had their effect. In 2012,
Forbes Magazine rated Detroit the most dangerous city in America. A
Detroit News poll
revealed that “Detroit’s crime crisis” has gotten so bad, a staggering
40 percent of its residents intend to leave the city within five years.
Another two-thirds say the city is on the wrong track. The poll also
found that all of Detroit’s public officials were held in low esteem,
except for Police Chief Ralph Godbee—who
retired due to a sex scandal after the poll was taken.
Now one might think that those living in the epicenter of
Democrat-inflicted misery for fifty years might consider changing
course. One would be completely wrong. On Nov. 6, Barack Obama
received 98 percent of the vote. On the same night Detroit voters
elected a convicted felon, Brian Banks, to serve in the state legislature. Other election results show overwhelming
margins of victories for Detroit Democrats as well.
Thus, the self-inflicted misery continues, even as it is almost certain that Detroit’s
Democratically-dominated
city government will resist the efforts of Gov. Synder, and the
Republicans who run the state legislature, to keep the city from going
under. It is also likely that much of that resistance will be framed in
racial terms, a theme that has already been stoked by U.S. Rep John
Conyers (D-MI), who has
represented
Detroit for 47 years. “How come all of the jurisdictions put under
emergency management are majority African American? Has anybody noticed
that?” he wondered. Here’s what some people have “noticed,” Mr. Conyers:
the top ten most dangerous cities in the nation are each
led by a Democrat mayor.
Gov. Snyder
frames the issue
correctly. “There’s probably no city that’s more financially challenged
in the entire United States,” he said. “We need to start moving upward
with the city of Detroit.” Eric Lupher, director of local affairs for
the Citizens Research Council of Michigan,
put it
even more bluntly. “The city could stop doing all of its current
operations today—no more police and fire, no more garbage collection, no
more street lights—and the city would still have billions of dollars of
debt and promises made for future payments that it would have to pay.”
Detroit residents have had fifty years to fix their own problems.
They’ve elected Democrat after Democrat, bringing the city to the brink
of bankruptcy. It is hard to imagine an emergency manager could do
worse,
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