46 replies to this topic

[pstall]

Oh and let's look at how the union's have taken care of the Motor City.

Detroit has closed more than 100 schools since 2004, yet still has more than 50,000 excess seats throughout the system.

Robert C. Bobb, the emergency manager appointed last year by Gov. Jennifer M. Granholm to take control of the schools, proposed the closings, which would eliminate as many as 2,100 jobs, in the face of a deficit expected to peak at $316.6 million and a dwindling student population

This week, Mr. Bobb announced a sweeping academic plan that calls for smaller class sizes, a 98 percent graduation rate and significant improvement in students’ yearly progress. “We have no more time to waste,” Mr. Bobb wrote in the plan

http://www.nytimes.c.../18detroit.html

Fast forward not even a year later.

State education officials have ordered Robert Bobb to immediately implement a financial restructuring plan that balances the district's books by closing half of its schools, swelling high school class sizes to 60 students and consolidating operations.

From The Detroit News:

Bobb, appointed emergency financial manager in March 2009, filed his deficit elimination plan with the state in January, saying it would wipe out the district's $327 million deficit by 2014. On Feb. 9, he told state lawmakers the plan is the only way DPS "can cut its way out" of its legacy deficit.

I think he means unions.

At the same time, Bobb said he doesn't believe the proposal is viable because it would drive more students away, exacerbating the district's financial emergency. But on Friday, Bobb confirmed he is working to implement the plan that will shrink the district to 72 schools for a projected 58,570 students in 2014.

"I believe the district can work its way out of these challenges," Bobb said. "It will take some time. I am firm believer we have to continue to make the deep cuts, and they are going to be painful. In the long run, the district will be stronger. There can be no retreat."

Bobb said he continues to work on an alternative plan — one similar to a General Motors-style restructuring — but has yet to release details or announce a sponsor for such a bill.
"Whatever comes out of the transition plan and whatever my new thinking is will be a part of that," he said.

Revenue is down dramatically, enrollment losses average 8,000 students a year and pension and health care costs weigh on the district.

And the bad news continues. Among DPS' fiscal challenges: An expected loss of $273.87 in its per-pupil foundation grant of $7,660. The loss is the result of a projected 83 percent property tax collection rate in Detroit for fiscal 2011. Last week, Gov. Rick Snyder proposed a $470 per-pupil cut for all Michigan districts.

A general fund budget strapped with annual fixed costs such as $52.6 million in pension costs, $44.6 million for health care, $26.8 million in utilities, $6.6 million in public safety and $3.5 million in unemployment. Continuing enrollment declines. DPS has lost 83,336 students in the last decade, leading to a loss in state aid of more than $573 million.
The district's deficit grew by $100 million in the last year — to $327 million — forcing it to deepen its reliance on short- and long-term borrowing, which costs DPS $55 million a year in principal and interest payments

Increased expenses included $23.6 million for the recall of employees scheduled to be laid off, $72.2 million in unrealized labor savings and $9.1 million in unrealized savings when some school closures were canceled.

All told, the unexpected revenue losses and cost increases led to a deficit for fiscal 2010 of $113 million,

Bobb was hired in March 2009 by then-Gov. Jennifer Granholm

Bobb's last day with DPS is June 30

From The Detroit News: http://detnews.com/a...s#ixzz1Ef60onrq

Edited by pstall, 22 February 2011 - 12:23 AM.

[Delhommey]

I'm sorry, under what scenario would Detroit's schools be doing well?

But yes, it is horrible that the unions have made it impossible to throw out workers on their ass without a penny so that the overall losses for the government could be less.

[Kitten Diver]

I'm sorry, under what scenario would Detroit's schools be doing well?

But yes, it is horrible that the unions have made it impossible to throw out workers on their ass without a penny so that the overall losses for the government could be less.

1) they are on par with LA/NYC/Chicago/Cleveland public city schools, it is what it is.

2) pro-union? not a bad stance unless you're a business owner.

[Delhommey]

True. Can't think of a business owner who wouldn't like to have na complete abscence of competition and organized pressure from his/her workforce. Doesn't mean it's best for the whole economy though.

[pstall]

Detroit just shows how antiquated in some cases the union model is. Cities and ultimately family and their kids are held hostage thru this and end up losing out. Then you have generations and a legacy of under achievement that strains your local economy even more with crime and under educated kids who are not living up to their full potential.

I think in some ways, Wisconsin is trying to avoid this.

[mmmbeans]

Detroit just shows how antiquated in some cases the union model is. Cities and ultimately family and their kids are held hostage thru this and end up losing out. Then you have generations and a legacy of under achievement that strains your local economy even more with crime and under educated kids who are not living up to their full potential.

I think in some ways, Wisconsin is trying to avoid this.

so... out of curiosity, what's NC's excuse?

[Darth Biscuit]

Unions serve good purposes when ran by honest people... problem is that's rarely the case. My dad was union his whole career and he always said that the union protects the sorry man.

[Delhommey]

You know I'd feel a little bit different if all these governments had put a little away during the boom years rather than go nuts cutting taxes and handing out goodies (which all of America ate up like little baby birds) and thus ensuring the crises would be worse than they needed to be.

People tend to work for the state because it's secure. They trade off the higher salaries they could find in the private sector for stability and a more generous vacation schedule.

So what happens? During the bull market, they sit and watch their friends in the regular work world's wages go up and up while theirs stay pretty much the same.

Where were all these articles proclaiming how unfair it was for state workers while government after government took in boatloads of tax revenue? They weren't there. State workers largely kept quiet because they knew they'd traded cash for stability. Everyone was OK with that then.

Now that there's a short fall? WHO ARE THESE SELFISH WORKERS THAT WON'T TAKE A KICK IN THE NUTS?

And no one NO ONE in the financial industry better say a peep after it was their greed that caused this crash and they responded by giving themselves fat little bonuses with my tax bailout money.

Edited by Delhommey, 22 February 2011 - 09:33 AM.

[Matt Foley]

Unions serve good purposes when ran by honest people... problem is that's rarely the case. My dad was union his whole career and he always said that the union protects the sorry man.

You hit the nail on the head. Friend of mine was in construction for 35 years. His company got a contract to build a nuclear facility on the Ohio River. The local unionized construction company didn't care much for him getting this job. He got phone call threats telling him they were going to blow up his house. Hard to sympathize with these people when they are run by thugs. In cases where they are not, then yes I can sympathize. How many unions are infiltrated if not flat out run by the mob?

[pstall]

so you are telling me all those major metro areas that have been Dem controlled for some time were handing tax breaks or handing out something else? it cuts both ways.

ahh, the typical fat cat wall street demonizing.

didn't hear from that crowd when money was falling out of the sky. didn't hear about that group in the boom times as you say.

so rather than focus on the city of Detroit we gotta try to do a fake out and bring up wall st anger.

keep in mind that CALIPERS(largest pension fund in the world) was investing in Exxon during the time the same whiny left was demonizing Big Oil. shhh.
It's up to the pension funds plan manager to be as prudent as possible and if he or she didn't know how to do that, then that's a tough nut to crack. some go for the stable job some go for the high risk high reward. its called free market. look into it.

[pstall]

so... out of curiosity, what's NC's excuse?

im talking about the concession and so called bargaining model that brings everyone to this point. you dont think the kids up there are going to lose out because of the costs associated with all that was mentioned in the article?

nc's excuse is they too have an antiquated system. it's called property taxes. think about it. you biggest source of revenue is dependant upon people moving to where you are and no matter if the equity goes up or down, you get property tax.
but the last few years, people weren't paying their mortgage so guess what they did with that property tax.

that too needs to be updated.

[g5jamz]

Amazing that in the Detroit situation that liberals can still find a "republican" boogeyman (Wall St) to pin their frustrations on. Oh hell then...let's keep voting liberals in at Detroit.

[Delhommey]

Man I keep scanning my post looking for where I blamed a particular party.

Project much?

[g5jamz]

Detroit has no one to blame but themselves.

[pstall]

You know I'd feel a little bit different if all these governments had put a little away during the boom years rather than go nuts cutting taxes and handing out goodies (which all of America ate up like little baby birds) and thus ensuring the crises would be worse than they needed to be.

People tend to work for the state because it's secure. They trade off the higher salaries they could find in the private sector for stability and a more generous vacation schedule.

So what happens? During the bull market, they sit and watch their friends in the regular work world's wages go up and up while theirs stay pretty much the same.

Where were all these articles proclaiming how unfair it was for state workers while government after government took in boatloads of tax revenue? They weren't there. State workers largely kept quiet because they knew they'd traded cash for stability. Everyone was OK with that then.

Now that there's a short fall? WHO ARE THESE SELFISH WORKERS THAT WON'T TAKE A KICK IN THE NUTS?

And no one NO ONE in the financial industry better say a peep after it was their greed that caused this crash and they responded by giving themselves fat little bonuses with my tax bailout money.

Ya gotta play the cards you are dealt. You are smart enough to choose stable over risk reward that is your choice. And do state workers not have a pension or a 403b? You mean they too didn't take advantage/get burned by the same magical money machine called the stock market?

The private sector that you are holding up as el bandido here are the same ones paying for the PUBLIC workers benefits. Are they not? Is that money coming from a Golden Goose that lives on Easter Island?

And those states that are heavily Dem over the years as well as the metro's weren't exactly cutting taxes or handing out money bags.

And guess why those states took in revenue? People were working and paying taxes and buying stuff.