Detroit Vote No on Proposal S

According to the Detroit News, Robert Bobb may be staying on as emergency financial manager of Detroit Public Schools for longer than planned. Bobb's one-year term is set to expire in March, but Gov. Jennifer Granholm wants to extend his appointment. "The governor is very supportive of the work Robert Bobb is doing and, yes, she would like Robert to continue his work beyond the original contract period," Granholm's spokeswoman Liz Boyd said.

The possible extension comes as Bobb is set to ask voters in November to approve a $500 million bond measure for school construction and renovation. Bobb has said he's implementing strong oversight measures that will outlast him. Reached by e-mail Thursday night about the possible extension, Bobb didn't say whether he'd stay beyond March. "I had an excellent conversation with the governor on the challenges and opportunities confronting DPS," Bobb said. "(I) look forward to continuing our conversation."

Come on Detroit, this is yet another political ploy to trick all Detroiters into voting for Proposal S, the DPS bond millage that will cost Detroiters a little bit over a half of billion dollars. Detroit, we can’t afford another bond millage when the last one we passed in 1995 which was a 15 year bond millage is set to expire in 2011. Therefore Detroit this talk about keeping Bobb on for longer than his one year term is just a political ploy for us as Detroiters to pass this terrible bond millage that has language that is unclear and shady in the sense of how much Detroiters will pay and how long will the bond millage be for this go round.

Now if you don’t believe me than here is a copy of Proposal “S” Language:
Shall the School District of the City of Detroit, County of Wayne, Michigan, borrow the principal sum of not to exceed Five Hundred Million Five Hundred Forty Thousand Dollars ($500,540,000) and issue its unlimited tax general obligation bonds for the purpose of defraying the cost of:

· --Constructing new replacement buildings and/or additions to existing buildings;

· --Remodeling existing buildings, including energy conservation, safety and security improvements;

· Acquiring, improving and developing sites, including playgrounds, playfields and outdoor athletic facilities in the School District;

· Furnishing, refurnishing, equipping and reequipping School District buildings; and

· Acquiring and installing, instructional technology equipment in and connecting School District buildings?

YES [ ]

NO [ ]

The estimated millage to be levied in 2010 to service this issue of bonds is 3.82 mills ($3.82 per $1,000 of taxable value) and the estimated simple average annual millage rate required to retire the bonds of this issue is 2.56 mills ($2.56 per $1,000 of taxable value). The debt millage levy required to retire all bonds of the School District currently outstanding and proposed by this ballot is currently estimated to remain at or below 13.0 mills. The bonds may be issued in multiple series, payable in the case of each series in not to exceed thirty (30) years from the date of issue of each series. If the School District borrows from the State to pay debt service on the bonds of this issue, the School District may be required to continue to levy mills beyond the term of the bonds to repay the State.

(Under State law, bond proceeds may not be used to pay teacher or administrative salaries, routine maintenance or repair costs or other School District operating expenses.)

Now from looking at the language it might be hard for some people to understand it especially if you read below the Yes or No portion of it. However simply put, currently Detroiters pay $13 on the current bond millage which is set to expire in 2011 which would drop those homeowners who pay taxes now back down to $10 in paying taxes on their property in 2011. However if Detroiters pass the extension on the current bond millage, it would mean that Detroiters would be paying no more $13 in taxes for at least 30 years unless the School District borrows from the State which means the bond millage for the city of Detroit could last for as long as the state decides.

Yes Detroit, once again, the state of Michigan will play a pivotal role in this matter and it could be a lifelong tax burden on the backs of us as Detroiters to pay for repairs to DPS that didn’t go so well last time plus there are too many unknowns currently in the city of Detroit. Now while a lot has changed for the better and for the worst since 1995 when the last bond proposal was passed, it is clear that one thing that can’t be denied this go round is that Detroit’s tax base is smaller due to the fact of the residency rule that was changed in the late 1990s and as a result many employees who worked for the City of Detroit and DPS were allowed to move out of the city thus decreasing the tax base of the city. Secondly, another factor that needs to be taken into consideration is the fact that many Detroiters don’t own homes as it was in 1995 but most Detroiters rent. Lastly, many Detroiters have already lost their homes and jobs thus resulting in the city to have more foreclosures than any other city in the state of Michigan.

So what all of that said, why should we the citizens of Detroit pass Proposal ”S” when it could result in long term permanent taxes on us. Already overburdened Detroit taxpayers are being asked to tax themselves out of their homes. All school bonds are added to one’s property taxes and Detroiters pay the highest taxes in the State of Michigan as is. Detroiters pay current for City of Detroit Operating Tax, City Income Tax, State Income Tax, State Sales Tax, Federal Income Tax, Wayne County Tax, School Operating Tax, School Bond Tax, City Telephone Tax, City of Electric Utility Tax, City Heating Utility Tax, City Cable Utility Tax, Garbage Pick Up Tax, Special Library Tax, Special Safety Tax, and Special Development Tax to name a few taxes that Detroiters are taxed for. Detroit we get no service for the taxes that we already pay.

Detroit we have already given Detroit Public Schools $1.5 Billion dollars and received little in return and no accountability. We are still paying the $1,500,000,000.00 in additional taxes voted to upgrade our schools in 1995 but instead the money has either been stolen and mismanaged by a heard of incompetents and leaches. Also currently high property taxes are causing some Detroiters to lose their homes. Detroit homeowners are losing their homes at an alarming rate to property tax and mortgage foreclosures. Then to add misery to this matter is that we as a city are being asked to tax ourselves to death when the City of Detroit has one of the highest unemployment rates in the State of Michigan. The official unemployment rate in the City of Detroit is around 20%, one of the highest in the nation. Those no longer counted could push this number to 30% or greater.

Detroit we can barely afford to pay our water bills and nearly 40,000 households received water shut off notices monthly in 2008. Thousands have no water in their house. Plus many Detroiters don’t have lights and gas. Detroiters struggle with extremely high heat and electric cost. In fact Detroiters we cannot continue to approve tax increases on our homes because we simply can’t afford the current taxes we have. Now for some people, they might think this is a tax on just homeowners but renters pay for these taxes too because if the current bond millage is extended than renters will see hikes in their own rent as well as electric and water bills. Plus when renters go grocery shopping in the city, they will many products priced higher due to the increase of taxes on the property owners at the stores they shop at. So both home owners and renters will pay if the Proposal “S” is passed.

Now is not the time for a bond proposal because let’s face it, EFM Robert Bobb hasn’t done a forensic audit for DPS which should have been one of the first things he did when he took office as the emergency financial manager. However it seems as if on a weekly basis, Bobb comes before the media to tell them and us as Detroiters what new things he has uncovered in terms of how the previous bond proposal has been mismanaged. In fact Bobb isn’t telling many of us who have been a part of the grassroots fight to save DPS anything new but what DPS needs now more than ever is a forensic audit that is aimed at uncovering all the financial mismanagement that has taken place for nearly the last decade and beyond. All of what Bobb has uncovered so far is the small change things that make him seem as if he is saving DPS but the reality is that many of us have urged for the state to step in and investigate the than reform board prior to us getting our elected school board back in 2005.

So let’s be real. As Detroiters we taxed ourselves One and a half Billion ($1,500,000,000) Dollars to upgrade our children’s Detroit Public Schools Buildings in 1995. Since that time, we have been diligently paying those additional taxes at great sacrifice. Now is the time for a forensic audit to expose the whereabouts of our money. This money was either stolen or mismanaged from us the taxpayers by then Governor John Engler with the help of the now Governor, Jennifer Granholm who was at that time Attorney General. They had the help of the Michigan Legislature which included Democrats from Detroit to strip the newly elected Board of Education of the City of Detroit of its powers and replaced it with a reform board that was filled with appointed administrators that Engler, State Legislators and Mayor Dennis Archer handpicked. However this reform board were not held accountable for any of the actions they made by State of Michigan. That’s why a fluid of corruption sweep through DPS like never before.

Much of the money from the $1.5 billion bond millage and from DPS’s general fund was given out illegally (no bid contracts) to campaign donors of politicians throughout Michigan, contractors, friends, family, and politicians. Corruption ran rampant with the children of DPS suffering the most while the taxpayers of the City of Detroit sacrificing their homes in the long run. Still those hired by the reform board to do the work often did an inferior job of any value for the monies they received. However one of the biggest outrages made under the reform board’s watch was when Dr. David Adamany sold the old school center building headquarters on Woodward to Wayne State University, a building that the district owned and put the districts offices in 3 different buildings on various floors of the Albert Kahn, New Center One and Fisher buildings in which DPS currently rents out the spaces in all of those buildings. So DPS has gone from owning property to now renting property at a higher rate than it was paying in taxes for owning a building that was more customer friendly for employees, parents and students to figure out.

Still even the renting out of the space has not been investigated by Robert Bobb and as the district closed 29 schools this year; Bobb didn’t mention any talk about possibly moving DPS out of the 3 buildings to perhaps any of the closed school locations which could possibly save the district some money. This is why a forensic audit is needed now more than ever in order to uncover exactly where the money has gone in DPS over the last few years. Simply put Detroit, why would anyone sell a perfectly good income producing property for pennies on the dollar and then take on landlord thus resulting in deficit. Many of the buildings which received shoddy cosmetic repairs required immediate restoration of the same work years after the first repairs. In fact buildings restored with the most recent bond millage funds have been closed, torn down or sold to charter schools. If our restored buildings are good enough for charter school children at this time, then they are good enough for our children. Those buildings housing charter schools have millions of Detroit taxpayer’s dollars sunken into them from what was supposed to be fix ups for buildings that DPS student were going attend.

I previously wrote about Proposal “S” on August 26 which can be read at www.essenceofpolitics.blogspot.com. However at that time Detroit, I wasn’t as adamant as I am now about us as a city voting ‘NO’ on Proposal “S”. There are too many unknowns in regards to Proposal “S” and the timing is just now right. As much as Robert Bobb wants to make people think he is staying around, I suggest for him to bring this to a ballot 4 years from now and let’s see how much DPS improves in its spending habits and in educating our youth. However for us as taxpayers to extend on taxing ourselves past 2011 when the first $1.5 billion has not improved our school buildings or academics is just foolish. DPS had problems before the state takeover however, what happened as a result of the takeover has put DPS in a worst condition than ever in the districts history and I am not excepting our current board from the problems plaguing DPS because many of them helped to continue the mismanage of DPS funds.

Proposal “S” would be too costly to us as Detroiters right now when we haven’t seen the full extinct of accountability from DPS even under Bobb’s watch when he is giving federal stimulus dollars to 4 management companies to manage nearly 90% of DPS high schools that are not even qualified to manage DPS. Plus according to my sources, it is unclear how much Robert Bobb is getting paid and how much many of the top heavy executives he has hired for the district are getting paid. Those contracts have not been indulged to the public in a time when Bobb was hired to balance the budget in which he hasn’t done. Then one last variable that needs to be discussed as we consider voting for Proposal “S” is the fact that Bobb has said he will put DPS into bankruptcy.

Therefore if DPS is bankrupt than why should we as the citizens of Detroit pass a bond millage for a district that hasn’t shown it can manage funds and why should we pass a proposal when the city of Detroit has withheld previous money from the last bond proposal passed in order to fix the city’s own financial shortcomings. So Detroit can’t afford proposal “S” when the city can’t fix its own budget problems and DPS needs to get on solvent grounds again before another bond millage is passed. No matter what Robert Bobb says and no matter what others may think, now is not the time for another bond proposal to be passed when much of the last bond proposal was stolen, mismanaged or wasted.

So I urge you the residents of Detroit to vote ‘NO’ on Proposal “S” along with me on Tuesday, November 3 because we can’t afford it and we deserve better than this proposal right now. Detroit we need more accountability to be put in place before we vote on any new extension of the original bond millage passed in 1995 plus Detroit we don’t know who will be over DPS come March 2010. Therefore there are too many unknowns regarding how the original bond millage was spent which is why we as a city and as the residents of our beloved city cannot pass another bond millage. No to proposal “S” because we can’t afford to have a bond millage the backs of us and our children for 30 plus years or more. We simply can’t afford it and we simply don’t have enough accountability in place to trust anything that anyone tells us after being on the job for less than one year. Detroit please vote ‘No’ to any new tax extension of the school bond millage.

If Granholm wants to keep Bobb here longer than a year than make sure he stays here for at least 4 years and restore the school boards power to have a check and balance system of Bobb’s powers because currently he has unchecked powers which is not what I as a resident of Detroit likes in a democratic nation. Still even if Bobb stays longer than a year, Detroit we simply can’t afford for the school bond millage to continue during a time when so many homes are being lost by Detroiters and Detroiters are being taxed to death enough already. So in concluding, no matter what anyone tells us, there is no such thing as a free bond millage, all Detroiters will pay in the end on any millage that is passed and as we look around our city, Detroit we must ask ourselves what good would new school buildings do to our school children when only 18 of the already 100 plus schools will get the $500,540,000 million dollars. That is not the type of bond millage I am willing to pass for DPS, a school district that I love dearly and I am proud to say I graduated from. Detroit simply say ‘NO’ to Proposal “S”.

VOTE NO to Proposal ‘S’