Wednesday, June 1, 2011

WHO BUSTED THE BUDGET FOR THE CITY OF GRAND RAPIDS AND HOW THEY DID IT! PART IV

THIS IS THE FOURTH IN A SERIES OF ARTICLES BEING PRESENTED GIVING PEOPLE A HISTORY AND SNAPHOT OF WHY GRAND RAPIDS IS IN FISCAL TROUBLE
They run from January to April 2010 and I wrote them for EMPLOYEES POSITIVE VOICES but they were spot on with some predictions and show it's not the unions fault but our leaders elected and appointed. In this one I urge citizens for the sake of public safety to vote for the City tax increase while acknowledging how state and local elected officials helped create this mess. This is condensed for your reading pleasure.

PART IV

Why I’m voting yes on GR income tax Increase
Our city is unsafe and there are no
other options

APRIL 2010 EPV by Rick Tormala


The City of Grand Rapids is no longer safe. Because of devastating budget cuts implemented over the past several years, police officer and fire fighter positions have been eliminated and we no longer have staffing levels to adequately protect our city. In a nutshell, it is the reason I’m compelled to support and work for the passage of the May 4th ballot proposal modestly increasing the income tax rate for Grand Rapids
residents and individuals working in our City.

It isn’t because public safety employees aren’t doing their jobs. Our outstanding and dedicated police officers and fire fighters are second to none and the quality of their performance in the face of an unmanageable work load is the only reason tragedy has been avoided and we don’t recognize the dire situation we are currently facing. Check the numbers. A police force of 408 in 1996 has been drastically reduced by 27% leaving us 296 today. Daily staffing levels of 57 fire fighters, the minimum number required to safely protect our city, have been replaced by woefully inadequate daily levels of 50 and much lower, because of the eradication of far too many fire fighter positions. Do the math and you’ll see it doesn’t add up to a safe city.

Tax increases in the middle of a crippling recession are a hard sell. Citizens are having trouble trusting elected officials at every level of government, for good reasons. Truth is a rare commodity. Responsibilities are avoided. Facts obscured, or out right hidden. Tough decisions are kicked down the road. Bad judgment and poor stewardship have placed us in a horrible position and people resent it. Any kind of tax increase anywhere is met with skepticism and anger, regarded as another government bail out. Well I resent it too, but anger is never productive when it interferes with sound reasoning. Examine this ballot on its merits.

Taxes are the prices we pay for the efficient delivery of government services and to maintain our quality of life. There are such things as just taxes and necessary ones. Common sense tells us nothing is free.

Public safety is the most basic need we have and without it little else matters. Call 911 and you want action. Faced with crime you need police officers fast. Persons undergoing a life threatening illness or accident demand a quick response from our fire fighters. Numbers and staffing levels impact response times. People won’t live, work, or raise their families in neighborhoods where they don’t feel safe. Businesses won’t locate in unsafe areas. Stores close, for sale signs go up, and people flee to the suburbs igniting a downward spiral of decay and despair. Grand Rapids has too many great neighborhoods and a fantastic population of wonderful people. We can’t let that happen here! I have enough confidence in the citizens of Grand Rapids to believe they will support a critically needed tax proposal if they have a chance to carefully examine the facts and make an informed decision.

This is not a property tax millage. Those tend to be regressive and unfairly target property owners, some on fixed incomes already struggling to make ends meet.

Instead what’s proposed is a small, temporary income tax increase with the burden shared by workers and businesses. It is by law targeted to public safety and expires in five years. Our income tax rate would rise from 1.3% to 1.5% for residents and from 0.65% to 0.75% for non-residents. Someone earning $50,000 a year would see their tax bill increase by $100, less than two dollars a week. Match that against future sky rocketing insurance premiums for businesses and home owners when insurance companies rightfully decide Grand Rapids doesn’t meet industry standards for safety. From a logical point of view this modest increase is the better choice. Additionally, the temporary increase is expected to raise $7 million dollars annually and will be used to rehire our vitally needed police officers and fire fighters once again making Grand Rapids safe!

We can and should have an open and frank discussion as to how we reached the situation we are in and who should be held responsible. That is a conversation we can have this year during the budget process as the City Commission outlines their priorities and next year when elected officials can be held accountable at the polls. But that is a battle for the future, right now we have a city to save.

If you’ve stuck with me to the end I hope your interest has at least been stirred enough to seriously consider this urgent proposal on its merits rather than emotion.

EDITOR NOTE (Will the public hold the elected officials accountable at the polls this year? Or are they voting with their feet?)

WHO BUSTED THE BUDGET FOR THE CITY OF GRAND RAPIDS AND HOW THEY DID IT! PART III

THIS IS THE THIRD IN A SERIES OF ARTICLES BEING PRESENTED GIVING PEOPLE A HISTORY AND SNAPHOT OF WHY GRAND RAPIDS IS IN FISCAL TROUBLE
They run from January to April 2010 and I wrote them for EMPLOYEES POSITIVE VOICES but they were spot on with some predictions and shows it's not the unions fault but our leaders elected and appointed. This one is a joint effort by and Peter Carlberg and me telling the REAL STORY of City Employees, Retirees and their families as told to us in their own words.

Are City Workers Overpaid?

By Rick Tormala and Peter Carlberg  Thursday, April 15, 2010 EPV

At last month’s second public G.R.A.S.S. meeting (Grand Rapids Advocates for Sensible Spending), GRASS leaders Rina Sala Baker and Mary Milanowski made a concerted argument that City workers’ pay scales and, especially, their medical and pension benefits, were the most obvious places to make cuts, as opposed to hiking City income taxes. Understandably irate off-duty fire fighters, police officers and City workers packed the meeting and tried to make the case that they had been agreeing to give-backs and wage-cuts for years, and wondered when the taxpayers and citizens they have been serving and protecting were going to do their part.

Watching the news coverage of the meeting on TV, eighty-four year-old Leatrice Mollien wasn’t buying the GRASS argument. This is tax prep season and she had her papers handy. “Want to see how generous a City fire fighter’s pension is?” she asked, holding out her earnings statement. “After they subtract what I have to pay for supplemental health insurance, they send me thirteen bucks a month.” Not even quite that, her stub read “$12.59.”

George Mollien joined the Grand Rapids Fire Department in 1945, right after returning from service in WWII. When he met and married Leatrice they had both been divorced and both had school-age children at home, one of his five children and two of her four. “I couldn’t afford to quit my job,” said Leatrice, “but at least it was part-time and I could be home to take care of the kids on some kind of a regular schedule. George and other firemen work crazy hours – 24 hours on, 24 hours off, sometimes 2 or 3 days off in a row, but a lot more than 40 hours a week. Can you imagine trying to manage children by yourself on that schedule?”

Another common problem confronts both police and fire fighters. The City doesn’t pay Social Security taxes for police and fire department employees so George, like a lot of firemen, had a second job so he could qualify for at least some level of Social Security. He worked part-time, on call, as a guard on Brinks armoured trucks, sometimes on very long hauls. “I remember him at least once making a run to the U.P. and back.”

George retired after 35 years with the fire department. He passed away in 1988, and Leatrice decided it was finally time to retire. “After 44 years at the same job, I was ready. I’m very lucky that I don’t have to survive on just George’s pension and social security benefits. He only qualified for about $400 a month from Social Security. I have co-pays on all my prescriptions and doctors’ appointments, and dental isn’t covered. I had almost two thousand dollars in out-of-pocket medical expenses last year that weren’t covered by Medicare or my supplemental insurance. I don’t have mortgage or rent costs, but I still have to pay property taxes and utilities. On just my widow’s share of George’s retirement benefits there wouldn’t be any money left for food.”

City workers’ pension benefits, unlike Social Security benefits, don’t have automatic cost of living allowances to adjust for inflation As George’s widow, Leatrice gets half of the pension benefit. When George first retired his pension check was about double the amount Leatrice gets and supplemental health insurance costs were much lower. But were George still alive the health insurance costs would be double and TWO people would be trying to survive with just the tiny remainder as a pension benefit.

Retired Fire Fighter Mike DeBack is proud of his service to the City and doesn’t begrudge the missed holidays and family events. Or even the injuries that eventually led to his retiring on a disability pension. Public service runs in the genes of his family: “My Grandfather was a fire fighter and so was Dad though he eventually joined the Grand Rapids Police Department. I was encouraged by my Grandfather to join the department he retired from in the 1960s. His pension when he retired was $278.85 a month and it never changed for the rest of his life. He had no cost of living increase ever and Grand Rapids police officers and fire fighters don’t get social security. People don’t realize that.”

“When I joined the Department back in 1970,” he recalled recently, “we had 312 men with staffing levels of over 60 to 70 fire fighters working every day. On most calls there were 5 men on every truck and engine. In those days we never went out with less than four. They wouldn’t allow it.” DeBack grimaces when he discusses the current understaffed Department: “I don’t feel very safe in my own neighborhood even though I live very close to Station Number 14 on Plainfield. Some days staffing levels are so low response times can be slower and portions of stations shut down or even go out of service. We need better numbers of officers for the police department too. We need to get back to funding the basic needs of our city - police, fire, roads, and other essential services. That is what people want and will pay for because it’s what we need.”

DeBack is Vice President of the Grand Rapids Fire Fighters Retirees Association, which meets twice a year and advocates for retired fire fighters and spouses. DeBack is less concerned about his own situation but deeply concerned about the plight of other retirees: “Some of these people are barely getting by. Some spend most of what they receive from their pension every month paying the city for their health care supplemental. I don’t know how they make it. Some pay everything they have for health care. People don’t know. The city doesn’t pay for health insurance for retirees. They never have. These people are on fixed incomes, usually don’t get Social Security and have to pay for their own Medicare supplemental insurance. Fire fighters have their pride and don’t like to ask for help. Some are surviving by going to food pantries and the like. It isn’t right. Again, I don’t think the public knows.”

Over the years, DeBack worked his way up to the rank of Lieutenant. Then, while fighting a fire in 1988, he fell off a roof fracturing his hip in 150 places and incurring many other critical injuries. He spent three months in the hospital and three months recovering at home, with a lot of support from his co-workers. “Fire Fighters take care of our own,” he says. With the support of his department, he returned to work for another seven years, becoming a trainer and a HAZ-MAT specialist. The scars and after effects are still with him today, including the disability that led to his retirement.

DeBack, now a 60 year-old widower, isn’t surprised by G.R.A.S.S.’s call for more wage and benefit cuts. “The workers always take the brunt. We’re the scapegoats. There’s been mismanagement and waste over the years by the City Commissions and City Managers, but because people don’t know everything we get the blame. City workers, government workers don’t get the respect they deserve for what they do. We’ve always been treated like second-class citizens and taken for granted…except when we’re needed. You know we always served the public well and will continue to serve them well, no matter what."

Rewinding again to the March G.R.A.S.S. meeting, after some early protestations and brief outbursts, the dozens of City workers in the audience are listening sullenly as G.R.A.S.S. authorities expound on how City-employee benefit packages are out-of-step with employee benefit packages “in the private sector”. The City workers are just as shy as any other civilian would be to stand up in front of a crowd and make a case for how much they are worth. It’s very awkward for most regular folks to do in the best of times. But now is the worst of times in recent memory.

Beyond Social Security exceptions, there are other significant differences from the private sector. Most private sector workers, even armed security guards, are ordered to avoid all risks – not enter burning buildings, pursue suspects down blind alleys or attempt to pull drunk drivers off the road. And most high-risk jobs outside of government command well above average hazardous-duty pay scales.

“We don’t know if our husband or wife is coming home at night. You can just sit over there and count your blessings,” an obviously offended Dolly Jessee tells the G.R.A.S.S. organizers. Her husband, Dennis, was a Green Beret for twenty years, served in action in Grenada, and now patrols the streets of Grand Rapids. “I worried when Dennis was in the Special Forces and I just prayed for his safety.” She reveals later. “I still do but Dennis loves his job and I support him. He wanted to serve his country and I’m proud of him and supported him. He gave twenty years for his country and still wanted to give more so he went into police work.”

After a stint with the Oakland County Sheriff’s Department, the native South East Michigan couple and their two children moved to West Michigan when Dennis became a Grand Rapids Police Officer. “What bothers me,” says Dolly, “is you say, ‘Ok I’m going to accept this job,.’ -then all of a sudden everything is cut. They then have to do their job, which is to protect people, but they also have to protect their family and we don’t come first. I mean, if Dennis has a late call, well… we are not going to be going out to dinner because the late call is more important. Many days our plans are ruined. These people go home and have their dinner at 5 o’clock. We don’t have our dinner at 5 o’clock. We have our dinner when Dennis comes home. You know family vacations, you don’t have any family vacations if your husband can’t get the time off. It’s like sorry guys we’re not going on vacation Dad can’t get the time off. Holidays and family events they are away many times. People don’t understand we do give. And that’s fine, after all these years I’m fine with that, but you know that women from GRASS, she said we are not willing to give up anything. Well we already give a lot. We give till it hurts. She should walk in our shoes some day.”

“Every thing the guys got they are paying for. They gave up wages for benefits. We pay 10% of the medical. I just think that the people don’t know. They think we pay no medical. That we have no co-pays. That we are given everything and that police officers and fire fighters aren’t willing to give anything back. But that isn’t true. I just had an operation. We paid $500 -maybe that’s not a lot to others but we paid it. We pay a co-pay for prescriptions, doctors visits, everything. If we’re sick we wait and if we have to go to the Doctor then we go, but we are careful with how we use it.”

“This is such a high stress job. The guys come home and they need time to decompress. Now to think some of the people in Grand Rapids are gunning for them. When those people need help who are they going to call?”

“I’m sorry the City is struggling, but for 15 years they didn’t pay anything into the police or fire pensions -but the workers did.” adds Dolly, referring to one of the City’s main budget problems – mounting deficits in their pension funds. City workers made their contributions to the pension funds year after year while the City and the taxpayers paid no contributions at all – relying entirely on the stock market boom continuing indefinitely to make up their share of the burden. City leaders were advised that they should still pay their contributions in booming economic times so they would have some kind of built-up cushion during economic downturns.

They didn’t and now that day has arrived.

Ultimately, who should pay for all this? The taxpayers whose elected leaders helped get us into this mess? Or should the already-sacrificing City workers, once again, take it on the chin?

Editorial Note (Retiree Former GRFD Lieutenant Michael M. DeBack one of our heroes interviewed for this article passed away Saturday, November 27, 2010 at the age of 62.  Our prayers go out his family and we will never forget his service.  Rest in peace Sir.)

WHO BUSTED THE BUDGET FOR THE CITY OF GRAND RAPIDS AND HOW THEY DID IT! PART II

THIS IS THE SECOND OF ARTICLES BEING PRESENTED TO GIVE PEOPLE A HISTORY AND SNAPHOT OF WHY GRAND RAPIDS IS IN FISCAL TROUBLE
They run from January to April 2010 and I wrote them for EMPLOYEES POSITIVE VOICES but they were spot on with some predictions and shows it's not the unions fault but our leaders elected and appointed

PART II

Truth, Transparency, and Taxes
By Rick Tormala    MARCH EPV 2010

President Obama rightfully referred to a “deficit of trust” citizens have toward the federal government. He cited his 2008 election campaign riding a tide of change and pointed to Senator Scott Brown’s Massachusetts victory as an example of continuing voter anxiety. I agree with him and believe the anger is found at every level of government.

Citizens want to be heard. They want their elected officials to listen to their priorities and take constructive actions. Government belongs to the people. They will not be ignored. Tired of scapegoats, they want solutions. They want public servants, not politicians. Too often amongst elected officials there are plenty of profiles but very little courage. More think of the next election, than the next generation. No wonder the trust of the people has diminished.  How do we restore it?

Governing with truth and transparency would be a good start. Respect the people. Involve them in the process of governing. Give them straight talk instead of trying to tell them what you think they want to hear. There are times when our leaders need to be mirrors reflecting the concerns of their constituents. At other times they should be a light to lead us. Every elected official must be willing to lose their office fighting for what is right. Applying critical thinking, fairness, and imagination to the challenges facing us should be the norm, not the exception. I’m tired of the old cliché “government should be run like a business.” Which ones – AIG, Enron, or some other paragon of America’s corporate elite? Governments and businesses should both be run with efficiency and common sense.

All this brings me to the tale of three cities: Grand Rapids, Kentwood, and Wyoming. All are located in the state of Michigan, facing budget deficits resulting from cuts in state revenue sharing, factory closures, and double digit unemployment, causing the erosion of once stable tax bases. Like many citizens and businesses their expenses have surpassed the money coming in and they are required to balance their budgets through cuts or raising more revenue. Unlike businesses or citizens they have a powerful tool working in their favor, the ability to raise taxes. Appropriately it can only be done with the consent of their residents.

On May 4th of this year, all three cities will have tax proposals on the ballot at a time when the American public is up in arms and skeptical of how governments handle their tax dollars. Each city is heavily touting the popular concern of public safety as the purpose for the tax increases.

Wyoming is seeking a 1.25 mill property tax increase expected to raise $2.6 million each year to help retain police and fire staffing levels. They also will have a November ballot proposal seeking to shift a millage currently used for capital improvements to the general fund. In the future they may even look at creating a city income tax.

Kentwood is proposing a 2 mill request earmarked for public safety expected to raise $2 million and would pay for the return of police and fire positions. Grand Rapids using its ability to levy an income tax has approved a ballot proposal to increase the current tax rate from 1.3% to 1.5% for residents and hike the current rate for nonresident workers in the city from .65% to .75%. If approved $7million would be raised annually to rehire police and firefighters.

Tax is not a four letter word, but rather the price we pay for services we enjoy, expect and want from government. In each city the public safety positions are desperately needed. That is unquestionable. Even in this anti-tax atmosphere a legitimate request for funds should be supported. The appropriate demand to make of the leaders of each city is to provide the evidence supporting their request. If it is legitimate and they can show their budget is devoid of fat, that they are funding the voters’ needs and not their own wants, then I believe even in this economy they will succeed.

 Every elected official voting to place these measures on the ballot should take to the streets fighting for passage and prove to the taxpayers their budgets are trim and responsible and their tax request is fair and vital to the solvency of their cities. To not do so would be to fail as leaders and to reinforce the cynicism of voters. Either it is critically needed or it isn’t. Neutrality is not an option. At least state and federal legislators are forced to go on record when they vote on tax increases. We should expect no less from our local representatives. Again only truth and transparency can overcome the deficit of trust.

It is estimated the cost to Grand Rapids citizens for putting the income tax proposal on the May ballot is $83,000 when it could have been placed on the August ballot for free. Ever since the state consolidated elections, the ones held in May are designated for school districts alone and they pay the cities to run them, but if a city places their own proposal on a May ballot they have to cover the costs. Officials in Kentwood, Grand Rapids, and Wyoming should all tell voters what the extra cost of these elections is to their taxpayers, and then explain why they are pushing the proposals in May instead of on a free August ballot. Maybe they have a good answer on the timing, but maybe they don’t? Again the public expects and deserves the truth. In fact they are demanding it!

Another question begs to be answered. Why didn’t the staff and elected officials see these deficits coming last year? They had to if they really were on top of things. Large holes in budgets don’t suddenly appear. We knew about the poor economy and the revenue sharing cuts. They should have placed these proposals on last year’s ballot, but then they would have had to run for election and re-election while giving their positions on tax increases. If Grand Rapids, Kentwood, and Wyoming had announced their deficits before last year’s candidate filing deadline, probably no one would have been running unopposed and the make-up of these respective elected bodies might look quite a bit different today. Mayor Richard Root of Kentwood in particular cannot blame staff for missing the boat since he is by law a strong mayor. Serving as the city’s chief executive he prepares the budget .  Again he ran unopposed.

Previously, I outlined some of the reasons why these cities’ budgets were busted. National policies and events cannot be mitigated much or controlled by local governments. They must play the cards dealt them in the most creative and prudent way possible. State revenue sharing comes from a municipality’s share of the state sales tax. Under law it is collected by state government and then allocated to the respective cities, counties, and township. Long story short, Michigan’s dysfunctional legislature has been raiding part of the money owed to pay for its own budget problems. It is wrong, and breaks a decades old covenant, but it’s legal. What I find peculiar is despite all the moaning and cries of injustice from the elected leaders of the three cities over the state cuts, to my knowledge none have ever held any local legislators accountable for their actions. Instead they usually support their re-elections while hoping these legislators will then support the dutifully compliant mayors and commissioners that didn’t rock the boat. One of the many reasons citizens count their fingers after shaking the hands of many politicians.

Already powerful interest groups like the Grand Rapids Chamber of Commerce and a spontaneous uprising of genuinely indignant and fiscally concerned citizens are rising up to mount a campaign against the income tax increase. I expect Kentwood and Wyoming will confront similar opposition, at least from citizens.

What can we do? I made these suggestions in January’s issue of Positive Voices and I repeat them again. I’m addressing the Grand Rapids city budget but lessons learned by elected and appointed officials willing to lead and sacrifice by example, coupled with a zero based budgeting approach eliminating unnecessary programs and personnel, are applicable to every city seeking tax increases from the public.

Sacrifice starting from the top. The Mayor surrenders his automobile and the Manager turns down his $700 monthly car allowance. They along with the Commission and every city employee making over $100,000 a year take an immediate voluntary pay cut of 10%. That would be real servant leadership and start to restore credibility. Slaughter the Office of Our Families, Sister Cities, the Office of Energy and Sustainability (a city cutting public safety and unable to balance its own budget should practice sustainability, not spend money preaching about it) and all other sacred cows. Freeze all taxpayer funded travel for the Mayor, Manager, and Commission as well as others. Get down to zero based budgeting where every job and program must be proven essential to the core services of the city or eliminated. Vote on every line item so the public knows the truth. Get rid of unnecessary bureaucrats. I hate to see anyone lose their job and the more they make the harder it
will be to find a job in this economy, but face the facts we are the City of Grand Rapids, not a tax funded employment agency. Quit paying around $89,000 a year to the Downtown Improvement District. No other governmental entity does. Have the Downtown Development Authority pay $1 million a year to fund police and fire services. It was a good start with $500,000 this year and I applaud Eric DeLong for putting it in the budget. Lease the parking system to a private entity (except the City-County one which is a cash cow for the General Fund) while maintaining control of the parking prices, keeping them affordable and parking spots available. We might net enough income to wipe out the deficit and even have a surplus. It will save us expenses and raise annual tax revenues.

Unfortunately many cities including Grand Rapids threaten the voters by holding them hostage to public safety cuts. Elected officials and managers know that no one is going to increase their taxes in support of administrators and non-core service programs. Their philosophy is the voter won’t support any tax increase without first feeling the pain of vital service cuts. That is a cynical and unwise position inviting disastrous results. These are our citizens not unruly, selfish children. Disrespect and insult them at your own peril. The discontent growing throughout the country must be acknowledged and recognized in our own communities.

Citizen participation is the glue holding our form of government together. We should encourage it through a vigorous and civil debate especially when constructing our budgets and holding elections.

The deficit of trust can only be filled by the truth and transparency of an open and effective government. Then tax questions will be decided fairly and by reason, not emotion.

WHO BUSTED THE BUDGET FOR THE CITY OF GRAND RAPIDS AND HOW THEY DID IT! PART I

THE FOLLOWING ARTICLES ARE PRESENTED TO GIVE PEOPLE A HISTORY AND SNAPHOT OF WHY GRAND RAPIDS IS IN FISCAL TROUBLE
They run from January to April 2010 and I wrote them for EMPLOYEES POSITIVE VOICES but they were spot on with some predictions and  shows it's not the unions fault but our leaders elected and appointed

PART I
Who Busted the City Budget and How do We Fix It?
By Rick Tormala JANUARY 2010 EPV

As I write this article just before Christmas 2009, the City of Grand Rapids is drowning in a sea of red ink with massive job cuts planned for close to 100 city employees including a devastating elimination of 26 police officers and 10 firefighters placing the security and safety of our neighborhoods at risk.

This is a scaled down version of the budget scenario originally proposed by rookie City Manager Greg Sundstrom on November 10th of this year when he announced 125 jobs would be cut by the end of the hard working employees, and requiring residents to pay between $25 and $48 a year to pay for street lights in front of their homes. Yeah, that will happen!

To paraphrase Mayor Heartwell, Greg and the City Commission already blew Sundstrom’s proposal to raise over $400,000 a year by reducing the City’s personal tax exemption from $750 to $650 costing taxpayers less than a couple dollars a year by not realizing Commissioners needed a 45 day waiting period to pass the ordinance by Jan. 1st.

Mayor Heartwell feared citizens’ reaction if he called a special weekend Commission meeting to meet the required timetable. Thus his poor judgment and leadership, along with city staff’s and our leaders ignorance of their own process cost us $200,000 in the final months of this fiscal year.

Citizens would have understood the emergency measure. Your Honor have some faith in the judgment and common sense of our citizens. Imagine the number of jobs that money could have saved.

If all of this confuses you it is typical City Hall math, moving targets hard to pin down when it comes to budget matters. I’ve broken it down as clear as I can with the information available.

Why didn’t the Manager and Commission see this coming? They had to if they really were on top of things. A $24 to $27 million dollar hole doesn’t suddenly appear. Imagine if Greg had announced this the week before the election instead of one week after.  

JJ might have won in a landslide being the only Commissioner to vote against structurally flawed budgets still filled with bloated bureaucracies and sacred cows.

I dare say, if this had been announced in April there may have been multiple candidates running in each Ward for City Commissioner and James Jendrasiak might have been the only incumbent re-elected.

How did we get here?

A terrible economy, falling income and property taxes, a dysfunctional state government stealing millions of our rightful revenue sharing dollars, but City Leaders and Management had a role in our own budget woes by not cutting spending in the right places and prioritizing correctly. It wasn’t the fault of our employees and their wages and benefits. They were unfairly scapegoated by former City Manager Kurt Kimball. Kurt negotiated the contracts and the City
Commission approved them. Then they turned around and unfairly put the blame on our employees. These same employees that helped the City reduce health care costs by millions and recently gave concessions like everyone else.

Fortunately, or unfortunately for some, everything a City Commissioner says in public is recorded as a matter of public record.  About 2004 at a budget meeting I offered to help put on the ballot an income tax increase and promised to campaign for it if 3 of the 5 assistant city mangers(they were paid from $112,000 to $102,000 each not counting benefits), the Office of Our Families (or as it was known then the Office of Children, Youth, and Families) and other unneeded administrators were eliminated and if the firefighters were given daily staffing levels of 57, police officers increased, all of the swimming pools kept open, money to street repair preserved, and if the funding for seniors, veterans, Arbor Circle, Catherine’s Care, neighbor associations and other vital funding in GLR was protected.

My suggestion was met by thundering silence.

We did protect GLR(General Local Revenue), but the year after I left the City Commission it was devastated by cuts and eventually eliminated tossing out the City’s commitment to social equity and making their triple bottom line for sustainability a cruel joke. I knew if they couldn’t manage less than ½ of 1 % of our General Fund for our most vulnerable citizens we were in trouble. Yet according to the City Comptroller they spent $301,650 that fiscal year on the
office of Our Families!

Several years ago I successfully pushed for the creation of a Citizen’s Budget Committee to review and recommend changes to our budget. They were largely ignored because they took on sacred cows and the Manager’s top heavy middle and upper levels of management. Commissioner Jendrasiak and I both opposed the hiring of multiclient state and federal lobbyists at the combined annual cost of $150,000 out of the General Fund(Now they have reduced it to $130,000 a year).
We have great Congressional staff and elected officials to represent us and on the state level if legislators can’t do it let’s get rid of them. This is a colossal waste of money.

At least one former member of the City Commission and a current Member who voted for the paying of tax money to the lobbyists both received PAC contributions from the state firm we hired to their campaign funds. Even if legal, it is hardly ethical and raises the odor of corruption that has polluted government at all levels.

There was a time when the city spent $66,000 and more for lunches
alone. I pushed it down to $29,000 by the time I left but it should disappear completely. There should be no free lunches on the taxpayer’s dime. Over the last ten years we have spent over a million dollars on the office of Our Families, over $100,000 on the Sister Cities program , around $366,820 for our share of a Customer Service Desk (Can’t every department answer their own phone for customer service?) and thousands on Commissioner and Mayoral junkets as well as hundreds of thousands in wasted consultant fees and memberships.

This explains where we are now and how we got here. We must fund our needs not our wants and get back to the basic services that make our city a great place to live, work, and raise a family.

Our new City Manager Greg Sundstrom is a good man, as is Kurt Kimball, but they have skewered priorities unfortunately rubber stamped at times by City Commissioners.

I applaud Greg’s seeking public input but when he starts wanting people to mow our parks, enforce housing codes and basically volunteer to be unpaid yet taxed city workers he looks out of touch with reality.

Robotically droning out at meetings with the public ... THE CITY IS LIKE AN I-PHONE PLATFORM... WE OWN THE PARKS....WE OWN THE LAWN MOWERS... WE NEED I-PHONE APPS... He sounded more like an electronic droid squawking gibberish on an unknown planet, than an experienced administrator. We need his creativity and years of experience, not BS and buzz words. We have been governed by those for too long. He is the Chief Executive not some technocratic R2D2.

Greg you also can’t cry poverty and then hire an $81,000 a year Assistant to the City Manager no matter how nice he is. IT DOESN’T COMPUTE!!!

How do we fix this problem?

Sacrifice starting from the top. The Mayor surrenders his automobile and the Manager turns down his $700 monthly car allowance. They along with the Commission and every city employee making over $100,000 a year take an immediate voluntary pay cut of 10%. That would be real servant leadership and start to restore credibility.

Slaughter the Office of Our Families, Sister Cities, and all other sacred cows. Freeze all taxpayer funded travel for the Mayor, Manager, and Commission as well as others. Get down to zero based budgeting where every job and program must be proven essential to the core services of the city or eliminated. Vote on every line item so the public knows the truth.  Get rid of unnecessary bureaucrats. I hate to see anyone lose their job and the more they make the harder it will be to find a job in this economy, but face the facts we are the City of Grand Rapids not a tax funded employment agency.

Quit paying around $89,000 a year to the DID! No other governmental entity does.  Have the DDA pay $1 million a year to fund police and fire services. It was a good start with $500,000 this year and I applaud Eric DeLong for putting it in the budget. JJ and I pushed that for years. Lease the parking system to a private entity(except the City County one which is a cash cow for the General Fund) while maintaining control of the parking prices, keeping them affordable and parking spots available. We might net enough income to wipe out the deficit and even have a surplus. It will save us expenses and raise annual tax revenues.

Then if your budget is clean and lean and we still need money place a tax proposal before our citizens for a vote. They love this City but you can’t threaten them with hurt, you just have to tell them the truth. Citizens want transparency, truth and efficiency and should get it from all of their elected and appointed officials.
George Welch built Richmond Park pool during the Great Depression. Our parks once had Halloween parties with costume competitions serving cider and donuts and ice skating in the winter. Our streets were fixed, plowed and salted. The best economic development incentives are good schools, great police and fire protection, recreational opportunities and beautiful parks, vibrant neighborhoods, efficient governmental services, available, safe, and affordable mass transit and a strong infrastructure. We had it all once. We have some of it now. We can have it all again.

Citizens let’s unite and demand real leadership and vision. Leaders on all levels need to get to work helping or get out of the way. Voters are not going to accept anything less any longer. We will build a great city, county, state and nation!!

Let’s hope for a Happy New Year with us all working together to make
our community better.

Monday, May 30, 2011

Remembering Our Heroes

Each May we celebrate Memorial Day in remembrance of those who have died in service to our country, though out of honour to the immense debt we owe them we should remember them every day of the year.  With their very lives they bought our freedom.
Originally Memorial Day was referred to as Decoration Day owing that name to the custom of decorating with flowers the graves of our nation’s heroes. General John Logan, National Commander of the Grand Army of the Republic was the first to proclaim the creation of Memorial Day and it was observed officially for the first time on May 30, 1868 with flowers being placed on the graves of the Union and Confederate soldiers in Arlington National Cemetery. Following World War I the purpose was changed from just honouring those dying in the Civil War, to include all who have died fighting on behalf of our country.
Unfortunately now days, a number of Americans have forgotten the real meaning of Memorial Day treating it as another three day weekend. When we forget our veterans, we forget the very spirit of service and sacrifice that is the essence of our country. Freedom comes with a price and we have an obligation to remember those that paid it.
In May 2000 hoping to restore the real meaning of Memorial Day, President Bill Clinton supported a “National Moment of Remembrance” calling for all Americans to pause for one minute at 3:00PM every Memorial Day to, “remember and reflect on the sacrifices made for so many to bring freedom for all.”
In West Michigan, the Grand Rapids Home for Veterans established in 1886 has a long history of serving Michigan veterans. The first soldiers to live at the Home were those from the Civil War and the Home has been serving veterans from every military conflict since that time.
On May 30, 1886, a cemetery was opened on the grounds for those soldiers who passed away while residing at the Home. That cemetery continues to be used today, 124 years later.
For many years the Boy Scouts have decorated the cemetery with United States flags to honour our fallen soldiers. This is a monumental task with over 5,000 graves, but takes the Boy Scouts and Girl Scouts only a short time to accomplish.
Every year on the Wednesday prior to May 30, the traditional Memorial Day, a short ceremony is held. The scouts then march across the bridge to the cemetery behind the honour guard to plant flags on each and every grave. Last week the annual ceremony was held and flags placed on the graves. God bless our scouts and volunteers.
Today as the calendar allows us to celebrate Memorial Day on its traditional date of May 30th we honour our heroes and pause to remember their sacrifice and service. Every day across the world American heroes still give their lives for our freedom. Through them the spirit of our country lives on. Let us never forget them!



Wednesday, May 25, 2011

Dissent to Grand Rapids Press’ editorial:Why emergency financial managers need broad powers


Friday, March 11, 2011 The Grand Rapids Press ran an editorial entitled: Why emergency financial managers need broad powers. Shocked by their naiveté and lack of understanding of the current statute and the legislation signed into law, I dutifully e-mailed them a dissent on March 24th in an attempt to clarify the situation and explain why the new law was not only unnecessary but detrimental to our democratic government. 

Dissent as written by me doesn’t seem to be received well by the Press editorial staff. I’m not sure they really grasp the concept of honest, fact based opposition to their editorials. As our paper it should be their responsibility to present both sides of disputed issues.  Fortunately Grand Valley Labor News is a forum open to free discussion. Therefore, I present to you my dissent to the Press’ March 11th editorial; complete and unabridged.

Sweeping authority for emergency managers is now law. The consent of the voters is eliminated.

The Press editorial while noting some inherent dangers in this law never-the-less pronounced it necessary by citing two reasons: “A financial manager needs to be able to quickly turn around a failing school district or local government. Without sufficient powers, he or she is little more than a figurehead using the same tools as the city commission or school board being replaced”.

“The penalties have to be tough to encourage local governing bodies to get their own houses in order so nobody has to come in and clean up for them. This legislation would provide strong incentive for commissions, school boards and employees to work together to stay out of receivership.”

It appears the Press like many legislators failed to read the previous law pertaining to emergency financial managers: The “Local Government Fiscal Responsibility Act 72 of 1990”.

Given the broad authority possessed by the emergency financial managers under Act 72 reasonable justification for the new law disappears in the face of the facts.  

 Under Act 72 elected officials obstructing the emergency financial manager can be removed with due process and the vacancy filled by a vote of the people. Manager’s orders bind local officials and all employees. Additionally, the manager can: make, approve, or disapprove appropriations, contracts, expenditures, or loans, the creation of any positions, or filling of vacancies; review payrolls or other claims before payment; exercise authority to renegotiate existing labor contracts and act as an agent of the local government in collective bargaining with employees or representatives and approve any contract or agreement; consolidate departments, transfer functions; appoint, supervise, and remove department heads; reduce, suspend, or eliminate the salary, or other compensation of the chief administrative officer and members of the governing body during the financial emergency; except as restricted by charter or otherwise, sell or use the assets of the local government to meet past or current obligations, provided the use of assets does not endanger public health, safety, or welfare. Topping it off the manager can place a millage on the ballot.

How much more power was needed?  Apparently, Governor Snyder thinks the power to dissolve governments and consolidate them without a vote of the people.

Communities are under financial stress largely because the Michigan Senate and House of Representatives voted to raid Revenue Sharing funds previously pledged to municipalities.

By law 21.3% of the first 4 cents of sales tax spent within a community goes to it for police, fire, and other local services. Since 2001 legislators have taken 78% of the municipalities’ share of sales tax revenue for a total of $4.2 billion. Restore those funds and most cities will be fiscally sound.

Governor Snyder placed $200 million in a new program for cities meeting his criteria on how to operate. If they “fail”, cities won’t receive funding owed them, thereby plunging them into fiscal distress and ending up with an “emergency manager” who can dissolve and consolidate local governments without a vote of the people.

Schools face a similar scenario. State funding cuts, might mean an emergency’s declared, whereby an “emergency manager” takes over, dissolves and consolidates with voters out of the picture.

Taking power from the people and placing it in the hands of a state appointed bureaucrat is offensive, an affront to democracy, and possibly unconstitutional.

Do either the Press editorial writers or Governor Snyder remember the wisdom of John Adam’s, “Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”

"THIS ARTICLE APPEARS IN THE MAY 2011 ISSUE OF THE GRAND VALLEY LABOR NEWS" Rick is a Contributing Editor and as author can post this in his blog. Original can be found at http://www.grandvalleylabornews.com/downloads/GV58.05may11.pdf 

GOT OSAMA, NOW WHAT?

Bye, bye, bin Laden is what I posted on my Facebook Page 11:40pm, May 1st when I learned Naval Seal Team Six killed him during a daring mission in Pakistan.  Perhaps too flip a comment for the end of someone’s life, but it was spontaneous and honest using humor to deflate the importance of a mythical terrorist mastermind. In reality Osama was a paranoid coward dispatching gullible followers to their deaths as human bombs while he burrowed away like a rat in a nest. 
Gallows humor isn’t inappropriate, it’s cathartic.  George Bernard Shaw described it best. “Life does not cease to be funny when people die any more than it ceases to be serious when people laugh.”  Still the death of any human being is no trivial matter and while we condemn Osama bin Laden’s evil actions (or more accurately plans since he lacked the courage to personally carry them out himself) no one can know the condition of his soul. In that matter God alone will render judgment.
Osama is gone, but al Qaeda and other terrorist organizations still exist.  We’re fighting a Hydra. Cut off the head and two more takes its place.  Hercules killed the Hydra by cutting off each head one by one then cauterized the open wounds preventing them from growing again. Dismantling al Qaeda, which translated into English means the base or foundation, cell by cell with persistence and perseverance is our best long term strategy. May 1, 2011 will be remembered as the day America’s best shattered the psychological cornerstone of this terrorist foundation. 
It will be a long struggle, or jihad, to use bin Laden’s own term, but we have a template for success.  Not massive troop deployments risking our soldiers and draining an already overextended federal budget, rather tactical surgical strikes by drones or special ops.
Terrorist leaders everywhere are looking over their shoulders knowing any time an elite American military unit can crash through the door no matter where they’re hiding. That’s the victory achieved by taking out Bin Laden, along with some solace provided to the victims’ family members and the survivors of September 11, 2001.  Their loved ones were avenged and will be remembered long after this demented terrorist is assigned to the trashcan of history reserved for petty tyrants and assassins.
CIA Director Leon Panetta put it best in his message to CIA employees, “The raid was the culmination of intense and tireless effort on the part of many dedicated Agency officers over many years.  Our men and women designed highly complex, innovative, and forward-leaning clandestine operations that led us to Bin Laden.  One operation would yield intelligence that was carefully analyzed and then used to drive further operations."

“Though Bin Laden is dead, al-Qa’ida is not.  The terrorists almost certainly will attempt to avenge him, and we must—and will—remain vigilant and resolute.  But we have struck a heavy blow against the enemy.  The only leader they have ever known, whose hateful vision gave rise to their atrocities, is no more.  The supposedly uncatchable one has been caught and killed.  And we will not rest until every last one of them has been delivered to justice."

"Remember how you felt in the anxious hours after the attacks of September 11th, and how our Agency vowed to run to ground a vicious foe.  Whether you were here at the time or were inspired to serve at CIA in the months and years that followed, take heart in knowing that our Agency is doing its essential job for the American people, and for all humanity.  A promise has been kept.  And a war will be won.”
President Obama made the right call. Credit for effective leadership and decision making goes to our Commander-in Chief, his national security team and CIA Director Leon Panetta.   Anyone thinking the President’s timing was politically motivated is drinking GOP Hannity’s Kool-Aid.   A bump in the polls now won’t help in November 2012 and could have helped in possibly saving the Democratic House in October of 2008.   He made the right call, at the right time for the right reason, the best chance for the mission to succeed.
Most of the details are public. Everyone acknowledges the successful accomplishment of the mission and the lion’s share of the credit belongs to Navy Seal Team Six our most elite counterterrorism group, and other unnamed courageous operatives.  Their near flawless execution of a dangerous raid was done in less than 40 minutes, resulting in the deaths of bin Laden and three adult males. Tragically a poor woman used as a human shield by a coward was accidently killed. Two other women were injured, but most innocent lives unharmed in the noble tradition of U.S. Forces.  We had no American casualties. Information released to the public informed us bin Laden’s corpse was handled in a proper manner in accordance with Islamic custom; the burial was within 24 hours but at sea.
My sole objection to the entire operation is the insensitive code name Geronimo given bin Laden.  I hate political correctness and don’t practice it.  By now though, you’d think our federal government would understand how to respect people they’ve spent centuries demeaning and mistreating? Taking the name given the legendary Apache warrior noted for his courage and assigning it to a cowardly terrorist and Public Enemy Number One is an insult to the First People of our country.  There would’ve been righteous indignation if a well known member of any other ethnic, religious, gender, racial or sexual preference groups’ name was used in such a fashion.  President Obama dedicated to unity and civil rights should assume responsibility as Commander in Chief for this stupid mistake, issue an apology, make it clear it won’t happen again, and then move on.
Where do we go from here?  Furthermore, who are the Arab or Islamic countries we can trust as allies in the war against terrorism?  Why not quickly and orderly transition our forces out of Afghanistan, even Iraq, and especially Libya?  Most importantly, what is our end game?  Need we achieve it with massive military force and presence in the area?
Afghanistan President Hamid Karzai is corrupt, unreliable and not worth any American lives. Clearly the government of Pakistan cannot be trusted either. Yes, we’re low on allies in the area and there’s been cooperation and assistance at times from both countries but it only confirms an old Arab proverb: “Beware: some liars tell the truth.”  Leaders of Pakistan and Afghanistan act in their own best interests which would be fine and understandable if those interests actually served most of their citizens instead of primarily themselves and their loyal henchmen.
Apparently, bin Laden lived safely under the nose of Pakistan’s government without any interference. Additionally, just days before the successful American mission ended the terrorist’s life and captured reams of intelligence material; Pakistani Prime Minister Yusuf Raza Gilani was urging Karzai to look at a long term relationship with Pakistan and China for help in solidifying peace with the Taliban and restoring the Afghan economy rather than working with the United States. Not exactly how trusted allies act.
America needs to review its foreign policy and long term strategic goals, including what is our ultimate mission? Is it sustainable financially and most importantly in terms of human lives?
During the 60’s both Presidents Johnson and Nixon were urged to “declare victory and get out of Vietnam.”  Those calls went unheeded while casualties increased and deficits grew.  It was the first American war televised and played out in our living rooms almost daily.  Watching the firefights and coffins of heroes on nightly newscasts took its toll on our will to fight.   Inequities in the draft caused understandable resentment. Anti-war protests grew at home and societal changes swept the world while our military forces bravely fought on without a clear mission. America was divided right down the middle over Vietnam.  It became a quagmire we couldn’t extract ourselves.
LBJ vowed he wouldn’t be the first American President to lose a war; Richard Nixon had his secret peace plan, experts warned if Vietnam went communist other Southeast Asian countries would fall like dominoes, generals blustered, and defense contractors grew richer, while the hopes and dreams of millions of Americans disappeared forever with the deaths of loved ones. Returning living heroes were scorned by a small minority of bitter and ignorant radicals. Unfortunately even the nation they served wanted to forget the war.  Many were scarred for a lifetime by what they suffered in combat and even more by their treatment after coming home.
There is no doubt we could have won the war in Vietnam, we had the resources and the best military forces on the planet the American soldier has always been second to none, yet at what price and to what end?  Would we still be there as an occupying force, finally leaving when we reached bankruptcy?  A person fighting for their homeland never gives up especially with cultures thinking in centuries rather than years.
Consider the elephant and a bee.  Strength, size, and power all go to the elephant yet the bee uses its tiny dimensions, speed, and sting to terrify the giant. Elephants are so afraid of bees they have a specific warning of deep rumbling to alert each other when the buzz of a bee is detected and travel miles to avoid a confrontation.  I’ll avoid the irony specific to the GOP since both parties need to learn this particular lesson.
What is the lesson of Vietnam?  It isn’t a strict isolationism or fear of ever launching a war.  History needs accurate and prudent interpretation.  Vietnam taught us the necessity of a clear and realistic mission, the need for building a strong coalition of domestic, political, moral and even foreign support with the will, resources and ability to accomplish our goals. We also need to understand our enemy’s culture, determination, and resources.
After 9/11 we had all of that and the war against al Qaida and the Taliban in Afghanistan initially was popular, effective and appropriate. Then we somehow lost our focus, launched a pre-emptive war based on faulty intelligence and now we are in Libya fighting for humanitarian circumstances. A noble purpose but it opens up the possibility of America become the world’s police force except in countries where they violate the rights of their citizens but possess nuclear weapons, draining some of the nobility from our actions.
I don’t know all the answers but at least have a handle on the questions and asked them earlier.  They can be summed up by what is the end game, is it sustainable in every way and are the standards for a just war:  1. the damaged caused by the aggressor is lasting, grave, and certain; 2. All other effective and practical options must have been exhausted; 3. Success must be a strong possibility; 4. Your military action cannot result in an evil graver than the one you are trying to eliminate being met.
These questions are tough and the standards high but going to war and risking the lives of not only our armed forces, but the innocents in peril from unavoidable collateral damage, and even those of our enemy requires they be met.  So do future generations of Americans we are burdening with an ever growing debt.
Crass as it may seem finances factor in the decision.  Almost every empire or world power met its decline after being drowned by war debt.  Ironically the war in Afghanistan helped bring down the Soviet Union.  Are we immune? It would be irresponsible, foolish and dangerous to believe so.
Terrorism, as I mentioned earlier, has many heads and tentacles requiring a different battle plan. Surgical strikes; successful intelligence gathering; strong, but constitutional, homeland security measures; and even an effective, humanitarian campaign designed to assist the ordinary people of the Middle East and Asia may be our best weapons.  Evoking another Arab adage, “Do good to people and you'll enslave their hearts.” Every time a NATO or US military strike accidentally kills civilians our enemies are handed a recruiting tool.
One good question is left, are Osama bin Ladens born or made? If so what creates one? Deconstruct the origin of your enemy and you’re half way to real and permanent victory.
I have complete faith in our troops and generals but they need a clear mission with a good chance of permanent success.
President Obama needs to do the equivalent “of declaring victory and getting out of Vietnam.”  Bring our troops home in a swift, orderly fashion from Libya, Afghanistan, and Iraq.  Avoid foreign entanglements not meeting the just war standards and America’s long term interests. Rebuild our nation economically and start paying down our debt.  We are stronger and better than our enemies, let’s show them and maybe even convert them. That would be real hope and change resulting in an honorable action both parties and our citizens could support.