In this week’s debate between Michigan Gov. Rick Snyder (R) and Democratic challenger Mark Schauer, Snyder ignored the advice Sgt. Joe Friday in “Dragnet” always proffered to witnesses and suspects, “Just the facts” when it came to his record on education, jobs and the economy. That’s alright. The good folks at You Got Schooled 2014 have the facts that Snyder ignored.
Rick Snyder: “They are giving parents choice because we have had a lot of failing schools, and the point was to give parents the opportunity to give their kids an education, create competition.”
Mark Schauer: “The first thing I will do is put the money back [Snyder] took from public schools. It is irrefutable.…Charter schools were allowed to expand with no oversight. That was a big mistake by this governor.”
Traditional public schools perform better than charter schools, even when poverty is taken into account.
“According to the Free Press’ review, 38% of charter schools that received state academic rankings during the 2012–2013 school year fell below the 25th percentile, meaning at least 75% of all schools in the state performed better. Only 23% of traditional public schools fell below the 25th percentile.“Advocates argue that charter schools have a much higher percentage of children in poverty compared with traditional schools. But traditional schools, on average, perform slightly better on standardized tests even when poverty levels are taken into account.” —“Michigan Spends $1B on Charter Schools but Fails to Hold Them Accountable,” Detroit Free Press
More than 80% of Michigan charter schools are run by for-profit companies.
“Michigan has more for-profit charter schools than any other state in the country. ‘We’re an anomaly in the nation,’ says Western Michigan University professor Gary Miron. He says over 80% of the charter schools in Michigan today are operated by for-profit companies, while the national rate is 35%.” —“Three Little-Known Facts About Charter Schools in Michigan,” Michigan Radio
On$1.7 billion business tax cut:
Snyder: He thinks business owners shouldn’t be taxed on income beyond what regular folks pay. He said, “We made a fair system to encourage job creation.”
Schauer: “Yes, I will repeal the job-killing pension tax. It is wrong, it is bad tax policy and it is breaking a promise.…Our ‘accountant governor’ is missing some columns on his spreadsheet and it is called people.”
Snyder shifted the tax burden from businesses to individuals, so low-income individuals and seniors saw their taxes increase the most.
“A major tax shift approved by the Michigan Legislature in 2011 made the state’s tax system significantly more regressive by cutting business taxes by 83% while increasing taxes for individual taxpayers by 23%, with a net loss of state revenue. Low- and moderate-income families were hardest hit, as many of the credits and deductions intended to reduce their income tax burden were reduced or eliminated, most notably a 70% cut in the state Earned Income Tax Credit—a refundable tax credit that has been shown to lift children and families out of poverty, increase employment and reduce the need for public assistance.” —“Losing Ground: A Call for Meaningful Tax Reform,” Michigan League for Public Policy
Snyder’s tax increases included a new tax on pensions.
“A big and controversial part of that income tax increase was the taxing of public and private pension income. That change alone was expected to raise for the state, and cost pension-receiving taxpayers, about $343 million in fiscal year 2012–2013.
“The changes are phased in, with those reaching the age of 67 in 2020 or after facing more taxes.
It’s an election year, and we are quickly approaching the time when working families will have the opportunity to go to the polls and vote for candidates who support policies that protect or expand our rights, raise wages and work for an economy that benefits everyone, not just the wealthy few. We’re going to focus our spotlight on some of the key candidates who care about working families, and one of those candidates is Mark Schauer, who is running for governor in Michigan.
Mark Schauer, a member of Laborers (LIUNA) Local 3555, has never forgotten his working-class roots. The son of a teacher and a nurse, Schauer paid for his college education with a paper route, by flipping burgers and pumping gas. When Schauer was in Congress, he was fierce champion for working people. He stood by workers by:
On Wednesday, Michigan Gov. Rick Snyder (R) signed into law a bill that would repeal the current minimum wage law, raise the state minimum wage to $9.25 by 2018, and index the wage to inflation thereafter.
The bill was nearly identical to one proposed by Gov. Snyder’s probable Democratic opponent, former-Rep. Mark Schauer. Last year, Snyder’s office responded to Schauer’s proposal by saying that raising the minimum wage wasn’t “a burning issue,” and that it could have “unintended consequences.” Other previous statements also indicated Gov. Snyder opposed efforts to raise the wage.
So what happened?
The people of Michigan happened. Specifically, citizen-lead effort by Raise Michigan to put a minimum wage increase to $10.10 by 2017–and making that the tipped minimum as well–on the November ballot.
In Michigan, if a law that is the target of a ballot initiative is repealed, the initiative effort is canceled or at the very least thrown into legal doubt. Republicans in the Michigan legislature introduced a weaker minimum wage bill aimed at doing just that.
As disappointing as it was to see this legislation introduced, when it became clear that Republicans were intent on passing it and take that choice away from voters, I decided to roll up my sleeves, take a seat at the table and work to make significant changes to the bill to infuse it with some of the real demands of our workers.
The result was what happened today: a minimum wage increase passed with bipartisan majorities in both Houses was signed into law by a governor who previously opposed it.
Raise Michigan, for their part, will continue their effort to get the higher increase on the November ballot. They are still submitting nearly 300,000 petition signatures to the Secretary of State.
In the meantime, even if the petition drive is truly scuttled, Michigan minimum workers will still see a raise of $0.90 an hour in September.
But one year ago, I remember watching news reports as the governor of my home state, Rick Snyder, emerged from police barricades after signing the so-called “right to work” bill into law in Michigan.
The whole thing was like a bad dream. Gov. Snyder had said for years that so-called “right to work” — restrictions on union dues aimed at weakening workers’ voices at the workplace — was not on his agenda. Then on December 6, 2012, he changed course, and called on the legislature to pass “right to work.”
With lightning speed, the Republican-controlled legislature went to work. There were no committee hearings, highly unusual for a major bill like this. The bill text was almost identical to an ALEC model bill, but that didn’t seem to faze the legislators.
On December 11, as more than 12,000 Michigan workers raged outside the state house, the bills for both public and private sector workers are passed despite bipartisan opposition, and Gov. Snyder had signed them into law by evening.
That was not a fun day.
After that fight, Working America pledged to continue the fight in Michigan and we have.
December 11, 2012 was a rough day. But we know what it takes to win in Michigan: hold leaders accountable for their votes, mobilize a team of activists in communities across the state and support candidates that stand with working families.
The assault on my home state hasn’t stopped there. Gov. Snyder, the Republican-controlled legislature, and emergency managers like Detroit’s Kevyn Orr continue to impose a narrow, corporate-friendly agenda on Michigan without regard to the lives and livelihoods of Michigan’s working families.
With your help, we can fight back against the extreme agenda that Gov. Snyder has pushed through and make Michigan the state we all know and love again.
We’ve seen a lot of things we value come under attack in Michigan lately, but we don’t have to stand for it. With your help, Working America can make a difference in Michigan. Help us fight back now.
As the story goes, the city of Detroit went bankrupt because of $18 billion in long-term debt, in large part caused by pension and health care benefits. A new report, written by Wallace Turbeville and released today from Demos, says that narrative is inflated, inaccurate and irrelevant to explaining the city’s bankruptcy.
Despite what the city’s emergency manager Kevyn Orr, who was hired by Gov. Rick Snyder (R), says, the $18 billion figure is not relevant to the city’s bankruptcy. To emerge from the bankruptcy, according to chapter 9 of U.S. bankruptcy code, Detroit only needs to address its cash flow shortage, a number that even Orr sets at only $198 million. But that number, much like the $18 billion number, is inflated because it goes with extremely aggressive assumptions for economic trends that are very unlikely to represent what really happens.
When projecting costs, governments often create several projections, often reflecting best-case scenarios, worst-case scenarios and some moderate position in between those two. Governments usually choose the moderate option in order to determine their budget projections. But Orr, Turbeville says, has chosen the worst-case scenario and isn’t at all based on a certain liability that the city will face. Furthermore, Orr includes in that total nearly $6 billion of debt from the Water and Sewage Department debt as city liability, despite the fact that this liability is based on an area much broader than the city. The department covers 3 million people in southeastern Michigan, not just the slightly more than 700,000 people who actually live in Detroit.
Turbeville notes that the city’s operating expenses have declined by 38% since the beginning of the Great Recession. During that same time, the city’s pension obligations only rose by $2 million. Health care expenses increased by 3.25%, less than the national average of 4%. The biggest proportion of increased costs for the city actually comes from debt service and financial expenses related to complex Wall Street investments that amounts to more than pension and health care increases combined. Other key components of the city’s deficit are:
A significant decline in revenue based, in large part, on the city’s declining population, which contributed to declines in tax revenue and property values.
A decline of $67 million in state revenue sharing with the city.
As much as $20 million annually in corporate subsidies that have provided questionable benefits to Detroit.
The report concludes:
Detroit’s bankruptcy is, at its core, a cash flow problem caused by its inability to bring in enough revenue to pay its bills. While emergency manager Kevyn Orr has focused on cutting retiree benefits and reducing the city’s long-term liabilities to address the crisis, an analysis of the city’s finances reveals that his efforts are inappropriate and, in important ways, not rooted in fact. Detroit’s bankruptcy was primarily caused by a severe decline in revenue and exacerbated by complicated Wall Street deals that put its ability to pay its expenses at greater risk. To address the city’s cash flow shortfall and get it out of bankruptcy, the emergency manager should focus on increasing revenue and extricating the city from these toxic financial deals.
Detroit public workers have already made sacrifices to keep the city afloat, including a $160 million in annual savings from a 10 percent pay cut, health benefit reductions, and a 40 percent cut in future pension benefits, Orr is making public worker pension cuts a key part of Detroit’s restructuring.
Remember, Orr was appointed by Gov. Snyder to be “emergency financial manager,” a position that does not answer to voters yet can overrule any local elected official. Michigan repealed the governor’s ability to appoint such managers in 2012, but Snyder and the legislature simply passed the law again.
My name is Donald Smith and I worked for the city of Detroit for more than 29 years.
Over close to 3 decades of service to the city earned me a pension of about $800 a month. After taxes and health care expenses are taken out, I am left with very little money each month to pay my rent, buy groceries and to cover my medical prescriptions.
Because of your decision to force Detroit into bankruptcy, I am starting to wonder which of my basic I needs can live without. I did not bankrupt Detroit – in fact, I went to work every day to make it a better place to live. So I can’t understand why you would ask retirees like me to give up the pension benefits we earned.
If you believe that we can afford to make do with less, then you must not know us. That’s why I want to invite you to my home so you can get to know me and see what life is like for retired city employees. I hope you’ll join my family for dinner and hear what really matters to us in Detroit.
We are willing to work around your busy schedule. We look forward to sharing a meal and our perspective with you.
Smith gets $800 a month from his public pension and $1,000 a month in Social Security. “Sometimes I have to make up my mind between getting my medicine and food,” he told WXYZ.
My grandfather spent 20 years of his life working in a Detroit factory.
He worked hard for what he earned. He trusted that sacrificing some of his pay to invest it in a pension would pay off after years of hard work. So that’s what he did. He retired, and his pension allowed him to provide for himself and my grandmother.
He and his coworkers knew that the pensions that they invested in were a valuable part of their income, not just a handout from their employer.
Right now, in Detroit, Emergency Financial Manager Kevyn Orr doesn’t see pensions the same way.
A quick review: In 2011, Gov. Rick Snyder and his allies in the Republican-controlled legislature passed a bill allowing entire cities to be taken over by “emergency financial managers.” These EFMs, appointed by the governor, were allowed to completely overrule decisions made by local elected leaders.
What Orr isn’t saying is what these workers sacrificed to protect their pensions. They accepted pay cuts, health insurance cuts and cuts to future pension benefits just to guarantee that the pensions they had worked a lifetime for would be there for them when they retired.
This is unacceptable, and we need to do better.
We can’t allow the wealthy elite like Snyder and Orr to take away hard-earned income from working families. Workers like my grandfather worked, saved, and sacrificed for years to make sure their pension would be there. It’s not a piggy bank for Orr and his rich friends to play with.
Last summer, the Supreme Court ruled that states could reject federal funds to expand Medicaid under the Affordable Care Act. And until recently, it seemed that Michigan would be one of them.
But then something incredible happened. You started to speak about how unacceptable it was that the poorest of Michigan’s residents, an estimated 470,000 people, would needlessly lack access to health care. You started to ask why Michigan would miss out on millions of dollars every day in Medicaid funds just so legislators could look tough in their opposition to President Obama. Over 7,000 people signed our petition to Gov. Rick Snyder and the legislature, and even more Michiganders called, wrote, and rallied for Medicaid expansion.
This didn’t happen by accident. We’ve been through enough battles to know that politicians don’t do the right thing on their own, especially when it involves going against members of their own party. It happened because you demanded it. This is a victory you won, and hundreds of thousands of people in Michigan are going to benefit from it.
We’ll keep holding Michigan lawmakers accountable. In the meantime, we’re gearing up to make sure everyone in Michigan knows their rights and opportunities under the Affordable Care Act.
In a humorous treatment of a serious subject, AFSCME is using GIFs—those ubiquitous, short animated photos—to tell the story of Detroit’s bankruptcy.
Featuring goofiness from cat boxing, to “Seinfeld’s” Newman, corgis on a treadmill, Eminem’s out-of-it halftime interview with Kirk Herbstreit and Brent Musburger and 20 more, GIFtroit outlines the facts behind Detroit’s bankruptcy, including Gov. Rick Snyder’s (R) hijacking of state revenue due Detroit, his financial “martial law” edict that strips cities of the power to govern themselves, Wall Street’s role and more.
GIFtroit also explains how more than 21,000 city retires are threatened with pension and health care benefit cuts while current city workers, including firefighters and police officers, face wage, benefit and job cuts.
While retirees and workers are the targets of the budget-gutting advocated by Snyder’s appointed “emergency financial manager,” Kevyn Orr, GIFtroit points out that Orr is:
Living in a taxpayer-funded hotel penthouse suite, spending extravagant amounts on room service and hiring assistants at $225,000 salaries.
AFSCME and other Detroit unions are challenging the city’s claims in U.S. Bankruptcy Court, and Judge Steven Rhodes is expected to rule on the city’s eligibility for bankruptcy protection later in the fall. Today, more than 100 Detroit workers, retirees and residents who filed objections to the bankruptcy are getting a chance to speak out before Rhodes.
The Michigan judge who ruled last week that Detroit’s bankruptcy filing violated the state constitution’s ban against tampering with public employees’ pensions, adjourned a hearing on the case this morning until July 29. Ingham County Circuit Court Judge Rosemarie Aquilina said:
As you all know, my decision last week was because there’s been a violation of constitution. I don’t believe the constitution should be made of Swiss cheese.
Detroit, with the backing of Michigan Gov. Rick Snyder, is seeking federal bankruptcy protection, including the right to cut pensions for the city’s more than 21,000 retired public employees, including police officers and firefighters. Kevyn D. Orr, the city’s emergency manager appointed by Snyder, has called for “significant cuts” to the pensions of current retirees.
When is enough enough? I’ve given you 34 years. I’ve given you two ankles, a shoulder and a back. I’m not even sure about my lungs. What else do you need?
Aquilina ruled the bankruptcy violated the Michigan Constitution’s ban on “diminishing” or “impairing” the pension benefits for public employees. Today, she said:
This is a very important issue. I understand that there may be this question of moving it to federal court….But these are state issues. We’re dealing with the state constitution and an emergency manager who is a product of the state legislation.
Snyder and Orr and the state’s attorneys are asking the state Court of Appeals to overturn Aquilina’s ruling. But once a bankruptcy filing is made in federal court, legal experts say it generally trumps other litigation in state courts.
Meanwhile, Bloomberg News reports that Detroit’s police and fire pensions asked the federal judge overseeing the city’s bankruptcy to delay the start of the case until the state issues are resolved.
Last week, AFSCME President Lee Saunders revealed that Orr’s legal team two weeks ago refused to meet with AFSCME to discuss retirement issues and, shortly before they filed for bankruptcy, claimed the union would have “months” to address these issues and that meetings would soon be scheduled to do so.”
Public workers are not protected by federal pension insurance. The average public service pension is $19,000 per year. A bankruptcy and possible suspension or reduction in pension payments would result in profound hardship for workers, retirees and their families. Apparently Gov. Snyder and Orr want Detroit’s public-service workers to rely on their children for food and shelter, or have to work until they die.