Three Reasons Why City Council Should Not Approve State Plan

Public Act 4 Consent Agreement, Based on Flaws and Lies


DETROIT, MI — April 2, 2012 — The Detroit City Council has been reviewing a proposed agreement with the state of Michigan over how Detroit Government should be remodeled and how control over the city’s finances should be allocated. There are severe problems with how the process has unfolded and how the state government has proceeded under the law.


Review Team’s Report is Poorly Written and Difficult to Follow

The Public Act 4, review team, produced a report that stated the city of Detroit has a financial emergency. This statement is itself based on provisions in the newly created Public Act 4 law which is being challenged as unconstitutional and is pending suspension from a citizen led petition drive. The report states in several places that problems exist yet does not provide examples nor cite specifics within the city’s budget or financial process. The report contains several tables of dollar amounts. However these tables are not linked to their source. They are meaningless without appropriate context. They cannot be used as fact based on their lack of factual data. It’s questionable if any of the city officials or any media persons has even read this report or reviewed these tables.


Review Team’s Report Compares Apples to Oranges

The Public Act 4, review team’s report is used to characterize debt for the city of Detroit. Their characterizations are not only misleading but not factual. The report includes debt from several places. One of those is Water and Sewage. The report lists these separately. In reality this is a single department. Further all revenue and debt is not covered just by the city of Detroit but by the consumers of the water and sewage system. The system is self sustaining. All revenue and debt is overseen by the water board and for the past thirty years by a federal judge. The debt by this department has never been stated to be problematic or a burden for the city of Detroit.


Review Teams Report Contains Speculation and Forecasted Opinion

The Public Act 4, review team’s report contains financial amounts for the city’s pension’s obligations. These amounts are questionable. Further these amounts are not based on current activity but by future possible activity. The city’s pension systems are up to date and secure, so much that multiple city authorities continue to borrow from these systems to finance building and construction in the downtown Detroit area.


The means that have been presented as a reason for Detroit to give up its control over our finances are false. The review team has merely produced a report to support the preference of the governor to dictate how city government should be run. Don’t allow someone else to trick you out of your money. This is merely a high tech confidence game where the con artist tricks you into handing over your money. Don’t be fooled.


For more information,

(Hood Research), (313.931.2700), (contact@HoodResearch.Org)

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