Tuesday, March 31, 2009

Billion $-Plus Deficit. Solution? Raise Worker Wages

Who is lying here? A Republican lawmaker says that the state needs to cut 5% of the budget across the board.
The Democratic governor says she’s trying but wants to wait to see how tax revenue went for the first four months of the year before doing anything.
As it is the way of politics, my guess is that both are not shooting straight. But a Granholm’s spokeswoman concedes that state worker pay is going to go up.
Liz Boyd, spokesperson for Granholm, said state employees will receive a 1% raise in October for 2010, and are scheduled for a 3% raise in 2011.
Which helps make it clear who is not cooperating.

Michigan Murder Case was SCOTUS Justice Roberts' First - Now Convicted Inmate up for Freedom

The Michigan Department of Corrections, by law, posts the list commutation hearings that will be taking place in the coming weeks. Commutation is not a pardon: If granted, the inmate reports to a parole officer for four years after release. These cases range from murder and kidnapping to armed robbery. Most are very serious and often violent crimes. Members of the public have a right to attend these hearings and speak if they desire. These can be emotionally charged events and I’m always surprised more reporters don’t attend. Perhaps they are too busy handing out parental advice or giving tips on home decorating.
In one recent case, a man who had been incarcerated since he was 19 was released. He was 64. What kind of story do you think you could pull from that? Answer: A very good one in the hands of a graceful journalist.
Next week, the parole board will hear the case of Paul Allen Dye, a man convicted of both 1st and 2nd degree murder in 1990.
According to case files , the murders occurred in Wayne County:
Early in the morning of August 29, 1982, [Donna Bartels and Glenda Collins] were killed in the clubhouse of the Forbidden Wheels Motorcycle Club. They had each been shot through the head. Their bodies were dumped on the curb of a residential street and discovered there by early morning
commuters.
Four club members were in the clubhouse at the time of the murders. Dye, Bruce Seidel, James Dawson, and Steve Stever all admitted to helping clean up the clubhouse after the killings. Seidel, the prosecution's chief witness, accused Dye of killing the women. Dye accused Seidel of being the killer.
Dawson and Stever, who had been in an upstairs apartment apparently asleep at the time of the killings, testified that Seidel walked upstairs, awakened them, and told them that Dye had just killed two women. Seidel, Dawson, and Stever further testified that after Seidel and Dye dumped the bodies, all four met in Stever's garage, where Dye admitted to the killings.

Dye has been locked up for 18 years and has zero sanctions, MDOC spokesman Russ Marlan told me. As with any commutation case, the state parole board has voted twice to hear his case for commutation after reviewing mental health reports and statements from the sentencing judge and prosecutor. So this hearing on April 9 is a big one.
But what is compelling about Paul Allen Dye’s case is its legal history. His appeal made it to the U.S. Supreme Court, where it may well be the first official opinion from the court with Justice John G. Roberts, and it sided with the inmate. In the process, it also bench-slapped the 6th Circuit Court for refusing to consider Dye's legal argument, which included the accusations of prosecutorial misconduct. The author of one sentencing blog, legal scholar Douglas Berman, notes: "So, when playing the "law nerd" version of Trivial Pursuit, remember that the question "Who prevailed in the first written decision of the Roberts Court?," should be answered "convicted murderer Paul Allen Dye.""
We know that this gets all legally intricate, and that’s not our mission here, but it is noteworthy that Dye is up for commutation. And this legal democracy holds hands with free markets, in our book.

Monday, March 30, 2009

GM/Wagoner - OK, Let's Move On

Are we over this Rick Wagoner episode? It surely was a development that drew many opinions. Was he a sacrificial lamb, as our Gov. Granholm claimed?
The White House promises that no matter what, your GM warranty will be good.
We really believe them. Those White House mechanics are crack.
Perhaps the best take of the day comes from Rick Newman at SeekingAlpha
While we disagree with regard to Newman’s take on Wagoner’s leadership and abilities – the departed CEO really was a major problem via his old school thinking – the new management won’t take the show to any better places. This is a company with problems that will only be solved through a major overhaul that a bankruptcy will put in place.
Let me allow a small story that paints a large picture of how GM is run. Last June, I went to the Hummer dealership in Lansing, Mich., where I live. I wanted to get my father a Hummer hat for his birthday. He is fond of the Hummer for its finger-in-the-eye of the environmentalists. So I walked into the showroom and was greeted with a hostile stare from a woman of about 25, who was very busy turning the pages of a glossy magazine of some sort, perhaps People or something. No greeting, no smile. Just a glare. The place was, predictably, empty.
“Hi, I want to buy a hat with a Hummer badge on it,” I told her.
“The only thing we have is in that showcase at the back of the room,” she said impatiently. I also liked her way of introducing the negative into the conversation.
I walked back and found the hat, good price, $20. She never budged, so I walked back and said I wanted to buy a hat.
Without a word, she picked up her phone and called…someone. She informed him that someone wanted to buy some merchandise and she didn’t have the key to the display case.
So I waited for about 5 minutes while this sales guy made his way. He was a pleasant man, about 60 years old. He pulled the cap and filled the spaces with some good conversation about the brand and hats and birthdays and parents.
But I couldn’t pay for the hat there. We had to go across the parking lot to a cashier in a separate building. We took a golf cart over there, and I went up to the window, where I presented the hat. The guy behind the glass – why do you have security glass in a car dealership? – scanned the hat and gave me a piece of paper.
“Take this over there and you can pay for it,” he said, pointing to another window 20 feet away on the other side of the room. I did as told. A coarse older woman took the receipt and my credit card, and I waited another 5 minutes. The sales guy who drove me over to came by to see how things were going. I told him I was perplexed as to why this would be such an onerous process.
“I really don’t know,” he said, with the air of a man who was used to this Soviet-style line waiting.
Finally, the lady huffed something at me, gave me a receipt to sign, handed me my card and my hat. I was done. I was walking away.
Except the price was different. They had charged me $30. I was 10 feet from the last window when I noticed and noted it to my salesman friend. And to redo the deal, I had to go through the same process again, more line waiting, more huffing.
I did get the hat and for the $20 price. But can you imagine what an ordeal a service issue would be? Or any transaction?
This told me exactly what I needed to know about GM. It was broken. And nothing short of a complete redesign, from the ground up, would fix it. Let’s hope that’s what comes next.
Maybe we can get a clue tomorrow in the new guy’s first presser.

Sunday, March 29, 2009

General Accountability Office to Monitor Michigan Spending of Stimulus Funds

Michigan is one of 16 states that will be overseen by the General Accountability Office in its use of federal stimulus money.
Now when we read this blurb on the governor’s Web site, we see a note that says “click here for testimony from Gene L. Dodaro, Acting Comptroller General of the United States…” but we see no link. This is not a good start in terms of transparency, when the very announcement that you will be monitored is not transparent. Here is what the office could not seem to provide. Curiously, the news that came earlier this month seemed to evade the Michigan media team. But Crain’s in Chicago ran a nice little Illinois-centric piece about it.
While we were at it, finding this site that allows us to report fraud or waste is an interesting idea. Not sure if it works, but we’ll be keeping an eye on the spending of these funds here in Michigan. We have no trouble dialing the 202, which was once our home.
GAO Follows Michigan Spending of Stimulus $

GM Honcho Wagoner Forced Out By Gvt - The Same Gvt He Panhandled


Rick Wagoner is finally leaving General Motors and we couldn’t be happier. His poor performance over the past 18 months befits his rather graceless departure, and his ineptitude was on display almost monthly.
A quick visit to the Wagoner Hall of Shame includes some choice comments:
5/8/07: “You see, the global auto industry is beginning to revolutionize the way that autos are powered… and the source of the energy used… and it promises to be the biggest change to hit our industry since, well, the invention of the internal combustion engine. Why is this happening now?
Well, for a number of reasons, it has become increasingly clear in recent years that oil alone will not be able to supply all of the world’s rapidly growing automotive energy requirements.
For the auto industry, this means that we must develop alternative sources of propulsion, based on diverse sources of energy, in order to meet the world’s growing demand for our cars and trucks.”

2/10/05: “Now, some people might have thought of American manufacturing as dying... but I prefer to paraphrase Mark Twain's famous quote: accounts of our death have been greatly exaggerated. In fact, the comeback of American manufacturing in the last two decades has been a remarkable story. In the early 1980's, American business, and particularly American manufacturing, was described by many as inefficient and ineffective... in a word, uncompetitive. The U.S. was losing its credibility as an industrial power. But American business and American manufacturers worked hard to fix what was wrong. And the U.S. has emerged, once again, as the most productive and competitive economy in the world.”
6/12/03: Speaking of one of the ways GM has taken a chance and come up looking good, “by investing more than half a billion dollars in this facility, the Renaissance Center, because we have a responsibility to make sure this city has a very bright future...”
Yes, Rick has been quite the star. But who will ever forget his shining moment, his last grasp as he begged for public money on Cap Hill after flying in on his private jet.
GM has declined to comment on the move. But we are sure there is some major glee among the troops. Tomorrow’s question is of his successor. Will it be an Obama appointee or will the administration change course and allow the free market to work?

Friday, March 20, 2009

Open Records and Vacation

Some civic minded state lawmakers continue to push for transparency in government. Senate Bill 382 holds hands with House Bill 4121 in asking for a public database in which residents can search for details of every expenditure by each state department and agency. We say excellent.
Also: Freemichigan is allowed some down time on occasion, as this is not our only project. We have articles to write, a script for a 10-minute documentary to write, an business proposal to put together and another book deal in the works. For the next week or so, I will be in Florida taking in some spring training games in the Tampa Bay area. We’ll be back the last week of the month at some point and take up where we left off. In the coming months, we will be attending more public meetings and bringing back the news to this spot. See you then.

Thursday, March 19, 2009

More School Districts Put Spending Online; Cities Stay in the Dark

Good news in terms of school district transparency.
With districts in Macomb and Oakland Counties on board, can we expect some districts in Wayne County to follow? How about Ingham? Doubtful and that’s where most of the problems are and the transparency is needed. While the Mackinac Center’s effort is commendable, all it can really do is ask the least resistant to comply. The problem remains in the most unstable counties, where most of the money is spent.
We are also puzzled by the comment from Bill Matthewson, general counsel for the Michigan Municipal League, regarding the refusal of cities and other municipalities to post public information online:
“The public is privy to city spending through meeting agendas, Freedom of Information Act requests as well as open budget hearings, he said.”
Perhaps in some cases, but at an exorbitant and often prohibitive cost. Matthewson is a typical bureaucrat and a former lobbyist who has no idea what these things mean of cost and his defensive position on the issue is a smoke screen. Looking at his background, it appears he hasn’t has an honest job for some time, according to his LinkedIn profile.
So the trouble remains at the municipal level. And folks like Matthewson work hard to keep us in the dark. We'd post the 990 for the Michigan Municipal League. But the tax-exempt body hasn't made it available online.

Wednesday, March 18, 2009

Michigan Quits Smokers

A tale of two quitters: In September, state officials claim that 18,000-plus calls were taken by the Tobacco Quit Line. In January 2005, we were told that 3,100 people called the line in a 6 month period from July to January.
For that same 6-month period in 2004, the line received 550 calls.
This massive demand is staggering and suspect.
Now, the line and program are being shut down. The claim is that supplies of free nicotine patches, gum or lozenges, which were announced on March 11 and available via a call to the quit line, are all gone under a deluge of 21,000 calls in one day. Done. No more program until September, according to the recording now greeting callers to the line.
Seems the program is a rather major success in some ways. This kind of response should be one for the books. Granted Michigan taxes tobacco at a high rate of $2 a pack – only New Jersey, Rhode Island and Washington tax higher – and we also lead the nation in unemployment. So there is some considerable incentive there to drop the butt. But in closing the line, do we say ‘Mission Accomplished’? How do you announce a giveaway and then in five days pull the plug?
Maybe the state outfoxed itself in keeping that tax unrealistically high. In October, tobacco tax revenues were down 20.2%. In 2007, those revenues were down 3.4%. Now, apparently, the program that has been promoted via advertising and in press statements is over with the flick of a switch, just after the launch of a new element of that program.
Below is a report on the state or the smoke in Michigan from last year reflecting 2007. The new report is due soon, provided no one takes too many smoke breaks.
Michi Tobacco

Tuesday, March 17, 2009

Michigan's Rep. Peter's Seeks Banana Republic: Tax AIG Bonuses at 100%

We figured that Michigan’s politicos would join the fray in criticizing the contractually-obligated AIG bonus deals. Rep. Gary Peters from Bloomfield Township has got it all figured out: Tax these bonuses at 100%.
Seems he wants to amend the Internal Revenue Code of 1986 in his plan to tax these folks. To single out a business under this code is going to be difficult, since the code is explicit in supporting the bonus as a means of compensation. These employees waived other modes of pay and this is, essentially, their salary just as our weekly paychecks are ours. We believe in honoring deals, no matter how distasteful they might be. And who is speaking out about the lack of due diligence on the government's part before handing over the money to AIG?
It would be like someone saying that the workers at General Motors, since it has been the recipient of federal funding, should be subject to a special tax because they are overpaid. One of my esteemed blogging peers has laid that out quite proficiently.
But while that is hardly be a cool thing to assert here in the U.S., folks in Canada are gutsy enough to say just that. And by the way, where was the outcry to tax GM chief Rick Wagoner's pay package last year worth $14.9 million, despite a $30.9 billion annual loss and billions in government aid? The pay was his contractually-obligated salary. But surely it was excessive given his performance.
AIG struck a deal that and has to keep that deal or we will end up paying the bonuses plus legal fees.

Monday, March 16, 2009

New Plan: Put All School Employees Under Gvt-Run Health Care

A new proposal on state tax, employee and pay reform has merit across the board, provided someone can protect it all the way to law. The plan, hatched by the Commission on Government Efficiency, a business-friendly panel created in 2007, has some strong points, including:
* Considering a requirement that all active school employees be placed in a state-run health care plan;
* Performing a study of compensation levels to analyze how state employees are paid relative to private sector and public sector employees in other states;
* Re-establishing a sentencing guidelines commission and reducing correctional officers' overtime and prisoner health care costs.
All are common sense measures. Will someone finally step up and push this? Who has that courage?
We'll take a look at this panel later. It has all the makings of a free market advocacy powerhouse. Can anyone hear it, though. Check out the minutes from its last meeting.
Committee Gvt Reform Minutes

Sunday, March 15, 2009

More on Sunshine Week: National Roundup

We’ve said that Michigan feels like a laggard in terms of public records and transparency. We’ve even got four counties that have absolutely no online presence, which is at least a start. But according to a new report from the Associated Press, Michigan fares pretty well against its peers in terms of records posted online. The state is actually doing well, we have noticed, if one wants to take the time to dig into its many sites. But most folks don’t have the time or inclination to do that digging, leaving it to folks like us to help them. There should be an office, not related to the government, that would gather the information, put it into a simple form, and post it on a regular basis. Newspapers no longer allow a staff the time or resources to do this. Any ideas how to get this done?
The story that accompanies the graphic above does a fair job of giving the state of open records today. There are plenty of Sunday op-eds and stories on the issue to celebrate Sunshine Week (which we believe should be every week).
The Arizona Republic reports on its state’s high rating in terms of online accessibility while the Oklahoman decries the failure of some of its cities in online open records access. In Louisiana, it was found that Gov. Bobby Jindal isn’t very transparent even after all his campaign promises.
In Jackson, Mississippi, the alternative weekly Jackson Free Press calls it right, taking Jackson’s paper of record, the Gannett-owned Clarion-Ledger to task for its flaccid reporting and lack of knowledge of the state’s Sunshine laws.
Support of this open government is not a gutsy call for news organizations; it’s kind of like being against poverty. We’re all against, it. What are you going to do about it? We don’t recall any of these major corporations that now own most newspapers hiring lobbyists to advocate for better, more complete open records access and enforcement. Gannett had revenue last year of $6.7 billion. Scripps a paltry $1 billion. And astute Reuters tech and media editor Tiffany Wu posits that NBC Universal could be worth $30 billion. And none can spare some cash to advocate for open government, other than to push out some tepid, rote editorials that may or may not resonate with their dwindling readership.
We say the good money is on a new form of journalism that focuses on openness and spends more time chasing down records, bothering public officials and doing the investigations that news agencies forgot about as they chase the bottom line. Watch this space for more developments on that.

Stimulus Sunshine: How Much Difference Does it Make?

Today’s Freep provides an excellent chat about FOIA and the public’s right to know.
Some of these points are obvious – “Before disbursing a dime of its anticipated $7.1 billion in federal stimulus funds, Gov. Jennifer Granholm and the Legislature should create a very public and straightforward "checkbook" showing deposits from Washington and payouts in Michigan.”
Obvious but very unlikely.
You may have seen the Mackinac Center’s attempts to persuade the governor to be more open and the lack of regard the state’s chief holds for an open government. If not, we’ve posted the correspondence below.
The Center aptly summarizes the exchanges, “Gov. Jennifer Granholm’s office has twice refused Mackinac Center requests to replicate the online spending transparency found on the Secretary of State’s Web site. Claims by the governor’s office that such a project would be “cost prohibitive,” however, don’t add up.”
On the subject of stimulus money: What’s the lead us to believe that the money will be spent any differently than any other government welfare lottery? Political favors will be paid and those tight with the administration will receive most of the proceeds. This is not just the case in Michigan, but how business is done in all states. Lip service is being paid to transparency here and for Michigan, here.
So far, Michigan has handed over stimulus $$ to public health clinics that didn’t even ask for financial help, a stateside arm of the Peace Corp, and law enforcement.
President Obama’s vast expenditure is neither sound nor fair. And even if we can see where this money is going, this is a rare case in which transparency is frustrating in confirming what we know: Special interests rule.
Granholm - Mac Center Letter
Mac Center Back to Granholm Letter
Granholm Back to Mac Center

Friday, March 13, 2009

Lack of Sunshine Hurts Police in Drug Raid Shooting

The secrecy with which local law enforcement operates in Michigan is darker than in most states. There are many stories of agencies refusing simple in-person inspection requests as well as cases of intimidation, a lack of knowledge of open records laws and outright refusal to comply.
In the shooting of a Grand Valley State University student
this week, the agency would be well-served by release of the search warrant. This would tell of any search for possible weapons and, in some cases, whether the suspect was determined to be of any danger. We are all for law enforcement’s right to defend itself and to pursue the law in the best way possible. At FreeMichigan, we’re always willing to give these officers a fair shake. And they are fighting a tough war against some unseemly characters.
We are not sure these unseemly characters reside at this apartment complex at GVSU. But maybe there was some deep, dark drug offender lurking in there that needed to be taken out. Don’t we have the right to know, now that the shooting is over? Now the investigation begins, granted, but police agencies in Michigan have long shrouded themselves in darkness, causing bad situations to become worse.
For these agencies, keeping the public away is considered the best policy. It creates a distrust for a group of people who should instead be respected.
The officer who shot the suspect is part of the West Michigan Enforcement Team. The team, a consortium of various law enforcement agencies, was the subject of this piece in December.
Below is a look at the enforcement team’s budget for 2007. We should not have to wonder what exactly these officers were looking for and why they determined a violent threat in that apartment. Most likely, this will be settled out of court with a fat payment to the family of the shooting victim and the public will never know what happened. Unless someone decides to really push it.
West Michigan Enforcement Team

U-M Toasts New Building With Pomp, Condescension

Real estate magnate Stephen M. Ross comes in on his private jet, tells us that our real estate market is dismal, then does a grip and grin for a $145 million building on a university that has a balance of $76 million in its endowment fund. Yes, Ross donated part of the money, and he succeeded on his business savvy, which we applaud. But the vision here is unsettling; the condescending comment, the big state building. He's bullish, though, on Michigan as he overlooks the massive spending at U-M and the tuition hikes, aka, the greed of academe. U-M President Mary Sue Coleman carries a base salary of $553,500.
"...Ross said the Ross School of Business is positioned to gain credibility as people turn to "Midwest values" to solve the financial crisis, which he attributed to "greed" and people "not seeing the handwriting on the wall."
We have included the 2006 tax form for UM’s alumni association. Money flows quite well at the top of the government heap, no?
U-M Alumni Account

Thursday, March 12, 2009

Florida Guv Apes Michigan's Failed Policy of Accelerated Public Spending

Reading this story in the Wall Street Journal of bringing more New Deal-type policies into play only on a local level contains this:
Florida Gov. Charlie Crist expects to create 39,000 jobs by speeding up the timetable on public-works projects.
Here in Michigan, we’ve seen how effective this notion of “speeding up” is. Recall the state of the state address from Gov. Granholm in 2005, when she announced:
"But, people need jobs today, as well. They can't wait either. So, tonight, I am announcing a Jobs Today Initiative that will create 36,000 jobs in the next three years by fast-forwarding $800 million worth of state infrastructure improvement projects, creating new tools to spark city development, and giving school districts a new way to upgrade their buildings without raising taxes. Rather than waiting years to complete this work, this initiative will get these projects moving this construction season.We will speed up the repair of roads and bridges."
How has that worked? Well, Michigan tops the nation in unemployment, and most construction has ground to a halt. We are among the poorest of states and as for our roads, help yourself. In short, the Jobs Today Initiative did nothing to help this state. Someone give Crist a call, because it's apparent someone in Tallahassee is not doing their homework.

Wednesday, March 11, 2009

Closing In on a Reason for Our Decrepit Michigan Roads

OK, we are all aware of the pothole deal here in Michigan, but it appears government is coming to the rescue.
Mike Nystrom, a lobbyist representing the unions that will do the road work that an increased gas tax will fund, says, "We believe, with [Gov. Granholm’s] leadership, getting the other legislature leaders together on this, we believe we can finally get something done that will help us to turn around the situation out on our roads."
Some counties are simply unable to care for their roads – Ingham and Wayne stand out. Some do a pretty good job. Oakland, which seems to do most things well, and Livingston, also manage their roads. Today, MDOT held two public public meetings on some road plans in Lansing that begin March 23. They were held at MDOT’s offices off of Collins Road, one at 1 p.m. which had about 10 attendees, I was told. For the 5 p.m. meeting, I was the only member of the public. The question I asked the MDOT folks is: Why do some states manage to take care of their roads while Michigan fails miserably?
I took Minnesota as an example. Anyone who has had the pleasure of driving there knows that the roads are in fine shape. Yet, each year, the elements relentlessly buffer them. There is freezing, thawing, freezing, thawing, the very same things that our public officials blame our pockmarked roads on.
I was told today by an MDOT chief that Minnesota can afford to pay for care of those roads because it has more tax dollars via a higher gas tax and higher vehicle registration fees.
He was mostly right: Minnesota charges an average of $125 a year to register a vehicle while Michigan’s average is $58. On trucks, Michigan averages $975 while Minnesota hits $865.
The gas tax is where Michigan drops the ball completely. It charges 19 cents a gallon while Minnesota charges 25.1 cents a gallon in state taxes. Yet Minnesota’s overall levy on a gallon of gas is 44 cents, while Michigan’s is among the highest in the nation at 48.9 cents. The big difference is the 6% sales tax we charge on each gallon of gas that goes into the general fund. Not to fix roads, mind you. The general fund, which goes for…well…other things, I’d imagine. Michigan also charges motorists another .875 cents a gallon for a fund called the “refined petroleum fund.”
We feel we are closing in on the reason for our awful roads. And I mean awful.

Tuesday, March 10, 2009

Traverse City School Leaders Negotiate with Union in the Dark

School administrators in Traverse City refuse to discuss the issues that are holding up a contract with teachers, again tromping on the rights of the people to know.
Taxpayers pay for the district's salaries and benefits, which make up more than 86 percent of [the Traverse City Area Public School district's] general fund expenses.
It is a pathetic bit of darkness that shows the lack of respect that public school officials have for their customers. Refusing to inform those customers of the issues should send these parents looking for an alternative. Are there raises on the table?
James Feil, the superintendent, of the school district, claims in a message on the district Web site:
We invite you to become fully involved in the educational journey of your student and our community’s youth – as a parent, volunteer, mentor, booster, and community supporter of our public schools.
Involved as long as you don't want to know too much, apparently. This is disingenuous at best.
Here is a list of the phone numbers of the school board. They should be called and asked for negotiation information.
It’s also hard to stomach this comment from Don Hakala, who is with the local MEA chapter.
"We're trying to bargain, and we're trying to get a fair and equitable contract."

If it were actually fair and equitable, we are sure that Hakala, who is paid $136,587 a year, would want us to know what it is. As would the Traverse City school administrators.
Here is a list of MEA salaries, just for future reference.
MEA Salaries

Detroit News Projected as One of Ten Dailies to Fall From Print


Financial media site 247wallst.com places the Detroit News on the endangered list of traditional paper copy along with newspapers from Chicago, Philadelphia, San Francisco and Boston.
With the fortunes of Detroit getting worse each day, cutting back the number of days that the paper is delivered will not save enough money to keep the paper open.
The News is a very good newspaper, as papers go today, often free of the lowest common denominator news and victim-driven stories that seem to drive most outfits. We should appreciate it while it’s here, and even though this prediction is that it will go to a full-time Web-only format, maybe as a newspaper romantic, I see it as something more.
Anyone who cares about the media knows that indeed, newspapers as we know them are about done. You are reading this because you appreciate a growing method of news distribution, i.e. the Web. In fact, you are among the primary reasons we are here. Another reason is the greed of corporations to maintain a profit margin for newspapers that is unrealistic, around the 30% range. Recall that traditional newspapers as recently as the 80s would hold onto margins as low as 2%. Everyone got paid a nice salary, great news was published and the arrangement satisfied most everyone. It was the pride of doing what had to be done; hard news had to be delivered and government had to be probed and forced to conduct its business in the open. Yes, there were features desks, but in the newspaper pecking order they were the lightweight division.
But when news began to become subjective – that is, when publishers and editors with an agenda began to decide what to cover and what to ignore – newspapers began to lose readers. When you ignore the flaming building and cover the parade, things are heading for the ditch. This was done at the behest of questionable focus groups which wanted more sensitivity in their news coverage, or at least that’s what we have been told. Weather stories and pieces about animals were the most popular stories, I was once told by a not-so-wise editor. Pieces that probed crime and the criminal element were scrapped at many papers, and local characters were seen as weirdos rather than interesting.
I was having breakfast in December with Larry Sells, the former prosecutor of Marion County, Indiana. A traditional crime fighting character who would be at home in any Ellroy book, Sells had sent some bad people away in his illustrious career. We were talking about a crime story I was working on and at one point, as we talked about the media and crime, he stopped.
“Why don’t newspapers cover crime any more, in depth, like they used to?” he asked me, genuinely perplexed.
I had no answer, other than the focus group excuse, which seemed lame at the time. But somehow, a collective decision was made that readers no longer wanted to hear about the legal process, or about how a crime came about, or about prisons. Edna Buchanan apparently has left the building and the doors were locked behind her.
But I later reflected that there may be no journalists left who are really able to cover crime or courts. They certainly aren’t trained in college by experience journalists. Unless they teach themselves, there is no place to learn.
Anyway, newspapers left readers with no place to go to find out about the flaming building.
And now, we very well could lose those red boxes that held the Detroit News. And that is all very sad. But to use a political analogy, the readers didn’t leave the newspapers. The newspapers left the readers.

Monday, March 9, 2009

Election Supervisor Error Costs Small Michigan Town's Taxpayers $24,000

This is how government often works. First, someone makes an error. Then, that someone tries to find someone else to blame it on. Then, failing that, tries to ignore it. Then, taxpayers cough up the money to cover the cost of the mistake.
In this case, it was a ballot mistake last fall that spelled candidate Obama's name "Barak" rather than the correct "Barack." One could see if this were a city council candidate. But this was the future president. And no one is willing to take the blame. In this case, the Ionia County Clerk, Tonda Rich, an elected official, refuses to accept the fact that she allowed a typo that misspelled the name of the future U.S. president to get past her.

Detroit Automakers, Michigan Politicians Ignored Ailing Vital Signs


Michigan’s manufacturing sector is losing jobs due to “high labor costs and a business tax structure that discourages new investment,” according to a bi-partisan report completed with the oversight of two lawmakers.
“Michigan has lost jobs to neighboring states and will continue to as long as the current tax structure and organized labor policies are in place,” the report reads.
This is NOT a report that is being provided to four federal government appointees visiting Detroit today to check out the demise of the Detroit Three.
It is the crux of a report that was issued in 1972, compiled at a cost of $135,000. Really. How smart are we?
Michigan has learned nothing in the 37 years since that study. So we can ponder whether the inability of politicians to face reality – a free market does not include an artificially overpaid labor force – is simply the way business has to be done, or are these elected officials just ignorant of a business economy.
All of today’s auto panel members are true blue Democrats, immersed over the years with three of the four providing fairly decent donor money to Democrats. Ron Bloom, in particular, appears to be a man who would not let the country’s interests get in the way of a decent deal for his union cronies. Diana Farrell, also part of the team, is a veteran economist who has donated to Kerry, Dean and all the rest during her storied career.
Meanwhile, the majority of Americans are fully against additional bailout money for the automakers. While this Quinnipiac University survey finds 65% of those polled do not believe the government has a responsibility to help the automakers, A USA Today poll in February found 75% opposed giving more money to the poorly-run General Motors and Chrysler.

Friday, March 6, 2009

Michigan - The New Denmark?



The governor of Michigan this week held up Denmark as a fine, upstanding
example
of “job creation” and lauded its terrific energy policies. It appears that Denmark has it all in her eyes, in fact.
Gov. Jennifer Granholm, in her remarks, says, “Denmark leads the world in wind power technology, an industry employing 20,000 people in a nation with half Michigan’s population. In fact, Denmark has a 2.2 percent unemployment rate. Denmark-based Vestas, the world’s largest wind turbine manufacturer, is a bright spot in a slumping world economy, reporting a 51 percent rise in operating profit for 2008.
Denmark has cut residential electricity usage to less than half of the typical U.S. household while maintaining the highest standard of living among Nordic countries. And that nation’s gross domestic product doubled during the past 30 years while electricity consumption has stayed constant.”
OK, we can go there in that Denmark is an example of good government in that the roads are plowed and free of potholes and most people are employed. And can we add that some there have a good sense of humor? After all, the Danish newspaper Jyllands-Posten is where the cartoons lampooning Muslim Prophet Muhammad first appeared in 2005. Now that’s funny.
In the meantime, in Michigan and in many other U.S. states, we have government here that is appallingly ineffective and wasteful and hamstrung by overwhelming layers of bureaucracy.
Let’s also be aware that nearly 45% of Denmark’s working population lives on government-tied funding, and a full 33% of Demarkians work for the government. This requires a tax rate of around 68%, including sales and other sundry taxes. A new car purchase includes a tax of nearly 100% and gas runs about $7 a gallon. Denmark also has what some call the most stringent immigration laws in Europe, laws that would inflame even the most moderate progressive.
The independent spirit that has served the U.S. in so many ways is quite markedly absent in Denmark. Yes, you can attend university for free. But if you choose not to attend, the government is there to ensure you have a paper-pushing job that provides free health care – which may or may not work out for you – and six weeks of vacation a year.
Oops: headline and subhead in today’s Jyllands-Posten:
"Failure of treatment of elderly…We need a small revolution in health care, says a think tank."
Well, anyway, when Granholm holds up Denmark as any kind of model, be it on energy or otherwise, there is a subtext that should be pondered. Recall the workaday in Orwell’s 1984. The nanny state, one in which the truly wealthy are mostly government connected, is a very scary place. And Granholm, who has no trouble paying her bills, is the perfect advocate for such a state.

Bad Driver Tax Proposed for Elimination

Michigan is one of the few states to impose a “bad driver tax,” which adds more fines to those already imposed for a traffic violation. This scofflaw assessment was made law in 2003 (sb509) and permits a levy of $100 annually to drivers who have accumulated seven or more points in a two-year period, to be paid every year that total remains over seven points.
Higher fees are handed down for more serious infractions like drunk driving or fleeing police. Also, drivers who leave their proof of insurance at home are taxed $300, in addition to any local penalty. The vote was 67-43 in the Senate, with 70% of Democrats voting for and 53% of Republicans saying yea. The stated reason for the tax? To close a gap between state spending and expected revenue. We are joined by New York, New Jersey and Texas in this type of tax.
This week, State Sen. John Gleason from Genesee County introduced legislation
that would end this tax on Oct. 1. We thank you for attempting to end the madness that this tax represents.

Thursday, March 5, 2009

Michigan School Sued by Liberal Group over FOIA Case

While free enterprise is almost always at odds with organized labor, the litigation filed by Change to Win, against Ferris State University is, in its barest form, certainly on the mark. The refusal of Ferris to divulge this contract, which is it obligated to do under law, is unconscionable regardless of how distasteful Change to Win is in its other endeavors.
From a release: “CVS Caremark’s lack of transparency is driving up prescription drug costs for consumers and health plans alike,” said Chris Chafe, executive director of Change to Win. “Michigan law protects the people’s right to know, in this case, what CVS Caremark is charging the university for prescription drug benefits, but also what compensation CVS Caremark may be receiving in the form of undisclosed agreements with drug manufacturers and pharmacies at taxpayers’ expense.”
We’re troubled here by CVS Caremark’s history of secrecy. The University of Michigan in 2005 ended its dealings with Caremark over a lack of transparency on pricing issues. Other municipalities have done the same.
We understand that some discretion is needed to ensure a competitive advantage. But that advantage is not at issue when a private company decides to play in the public arena, and this goes for anyone, be it a concessionaire, an airline or a health care provider. If they would prefer to have their information kept private, then don’t do business with the public sector.
The complaint:
Change to Win FOIA Complaint
One more tidbit related to this case: Margaret Kwoka is an attorney for Public Citizen representing Change to Win on this case. She is also the lawyer who is taking on the National Highway Traffic Safety Administration to gain access to a report showing the dangers of cell phone use by drivers.

Tuesday, March 3, 2009

Michigan Paroles Record Number of Violent, Sex Offenders in 2008

Convicted violent offenders in Michigan were granted parole in the largest numbers in last year since 1999, while the number of sex offenders given parole was the largest since 1996. Are we at more risk?
Parole Approval Rates 190318 7
A January report to state legislators from Patricia L. Caruso, director of the Michigan Department of Corrections, notes that “There were a record high number of moves to parole in calendar year 2007, due to a record high number of parole decisions.
Moves to parole in 2008 decreased from that record high because of fewer parole decisions, but 2008 was still the third highest year for moves to parole in history because of an increase in the parole approval rate. The approval rate climbed from 52.5% in 2007 to 58.0% in 2008, which is the highest parole approval rate since 1993.“
It all sounds good – the rehab is working, according to Caruso. Perhaps more states should adopt our model. But remember that the dictate went out a while ago for prisons to reduce populations. And those calls have always stipulated that those being released are non-violent offenders, and in some cases, convicted drug scofflaws.
But parole approval rates for drug offenders and non-violent criminals last year were about the same as previous years. Instead, we are paroling more hard-core criminals. It all sounds nice to say that those hitting the streets are not a danger to us. But the truth is not so nice. Has anyone posed this question to lawmakers?

Monday, March 2, 2009

List of Those Who Are Holding Hand Out for Stimulus $$

Now we’ve got it – a government provided site to tell us just how the Stimulus Bill will provide for us and how that money is being spent.
I decided to poke around on the 1,238-page request list and see just who wants what from the Fed giveaway. Some stunning stuff. For example, at Wayne Gray Elementary in the Addison Community Schools district, $3,500 is needed to replace the partitions in the boy’s bathroom. OK, maybe. But the start date is listed as June 8. The completion date? September 1. It’s going to take three months to do a job that should take three hours. I might add that the city of Alma is seeking $860,000 to reconstruct a half-mile of road. That, too, will take three months. Perhaps this is the bigger problem, this snail’s pace that government likes to toil at. Lapeer Community Schools also put its hand out for $13 million to “install geothermal heating and cooling system; replace existing windows, building remodeling to accommodate geothermal…” I guess if we are going to get the dough to install geothermal, we might as well remodel the building to accommodate it, eh?
In fact, let’s look at Lapeer Community Schools. With 7,337 students, it spends $22 million a year on 354 teacher salaries and benefits. Yet somehow it feels that shelling out $13 million on geothermal heating is a suitable way to spend money.
We’re also fond of Insight Management and Consulting Practices which asked for a staggering $84.5 million. The group was incorporated in March 2008 by Tarik Hafeez, a Canton lawyer who is part of a group called LegalEase Solutions . Insight is located in Flint. Its request covers the cost of a nursing home, a high school, a neuro rehab unit (we presume the high school will prepare this unit’s team) and a study of scar tissue. This is a company with no apparent claim to credibility nor does it appear to be able to keep its Web site up to date. Sure, let’s hand them $84.5 million.
One more thing: the Ingham County Health Department received money that it didn’t even have to ask for. Nice work if you can get it.
Michigan Welfare From Stimulus

Sunday, March 1, 2009

Justice Keeps Rolling over former EMU Prez

Disgraced Eastern Michigan University President John Fallon continues to get smacked down for his role in covering for an on-campus rape/murder at Eastern Michigan University in 2006.
In the latest legal ruling, Fallon is on the hook for more than $18,000 in legal fees the school racked up defending itself against a suit from Fallon.
Fallon was fired in July 2007 following a controversy that began with the death of EMU student Laura Dickinson. Dickinson was found dead in her dormitory room in December 2006. Campus officials did not reveal the criminal nature of her death until a suspect was arrested two months later.
Fallon’s case – as well as the whole situation surrounding the murder – shows a glaring lack of respect for transparency that the educational system holds. The system often claims it is trying to protect the kids, when the reality is that people like Fallon, a longtime academic administrator, that are really being shielded. Fallon hadn’t been in office two years before this murder took place in a dorm.
Security on Campus, Inc. and a U.S. Department of Education report found that EMU had violated the federal Clery Act, a law that requires colleges and universities to disclose information about crime on and near campus.
And two weeks before the murder, three Republican appointees to the eight-member EMU board of regents resigned, claiming Eastern Michigan's administration had made poor hiring decisions and that "distrust and open animosity" exist among groups on campus.
Here is a nice timeline of the EMU debacle, which is a blueprint for what can happen when the government tries to hide things.