Obama administration committing $320 million to aid bankrupt Detroit

posted at 4:41 pm on September 27, 2013 by Erika Johnsen

“The President and members of the President’s senior team continue to closely monitor the situation in Detroit. While leaders on the ground in Michigan and the city’s creditors understand that they must find a solution to Detroit’s serious financial challenge, we remain committed to continuing our strong partnership with Detroit as it works to recover and revitalize and maintain its status as one of America’s great cities,” were the exact words from the White House upon the announcement of Detroit’s municipal bankruptcy filing last July. “The issue here of the insolvency and dealing with that is one that Detroit and Detroit’s creditors will have to resolve. We will be of assistance in general, both in terms of policy as well as just being a partner with Detroit as Detroit finds its way and moves forward in the coming weeks, months and years,” spokesman Jay Carney reiterated a day later.

This, apparently, is what the federal government maintaining a “strong partnership” and being of “assistance in general” looks like, via Businessweek:

U.S. President Barack Obama is committing at least $320 million to revive bankrupt Detroit, primarily through grant and funding programs, to raze blighted buildings, hire police and firefighters and improve transit.

A delegation from Washington led by Attorney General Eric Holder, Housing and Urban Development Secretary Shaun Donovan and Transportation Secretary Anthony Foxx will meet with Michigan and city officials today.

“We’re going to continue to support the efforts under way in Detroit and ensure the federal government is an active partner in supporting the revitalization of the city,” Gene Sperling, director of the National Economic Council and head of an interagency working group on Detroit, said in a statement. …

The White House will commit $150 million for demolition of blighted properties and neighborhood redevelopment, in federal and other funds. Block grants of $65 million and $25.4 million from public and private sources would be used to tear down and refurbish buildings.

I suppose it isn’t a bailout per se, and it is certainly nowhere close to the at least $18 billion Detroit would need to cover their total debt and unfunded liabilities — and hey, what’s a casual $300 million or so between friends? I wondered whether the Obama administration would at first publicly eschew the very obviously awful and repercussion-heavy notion of offering the city a bunch of financial aid, but then just wait a couple months for the dust to settle before offering some under-the-radar lifelines for their liberal allies who sank the city into financial emergency in the first place — and lo and behold, that was the plan all along.


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Pension bailout.

petefrt on September 27, 2013 at 4:45 PM

Let
It
Burn Crumble

iurockhead on September 27, 2013 at 4:46 PM

Testing ground for California’s bailout

tommer74 on September 27, 2013 at 4:46 PM

hire police and firefighters and improve transit.

This is a joke. Revitalize for what reason, to draw families and entrepreneurs into a city so dangerous that cops have to travel in 4 man, 2 car squads just to protect themselves.

Bishop on September 27, 2013 at 4:47 PM

And he says we’re not a banana republic …

besser tot als rot on September 27, 2013 at 4:47 PM

but then just wait a couple months for the dust to settle before offering some under-the-radar lifelines for their liberal allies who sank the city into financial emergency in the first place

Yeah, this is just enough money to get them past November 2014. After that…

petefrt on September 27, 2013 at 4:47 PM

More money down the s-hole…

PatriotRider on September 27, 2013 at 4:47 PM

Use the money to demolish what’s left and call it a day…

PatriotRider on September 27, 2013 at 4:49 PM

The larger problem is that Obama has slush funds (with hundreds of millions of dollars in them) that he can waste on a whim. I’m guessing if the government really did shut down (it won’t) it would have zero effect on this.

Fenris on September 27, 2013 at 4:49 PM

How much is that per stray dog?

Oil Can on September 27, 2013 at 4:50 PM

How much is that per stray dog?

Oil Can on September 27, 2013 at 4:50 PM

$9.99.

Steve Eggleston on September 27, 2013 at 4:53 PM

CA test balloon. Seeing what kind of reaction is from this.

watertown on September 27, 2013 at 4:53 PM

Putting in funny money after bad… we ran out of good money some time ago.

ajacksonian on September 27, 2013 at 4:53 PM

Paid, doubtless, with the phony money the fed is printing in the basement.

When inflation hits as the fed tries desperately to claw back in over $3 TRILLION in bad currency… the party’s over.

Carter era only saw the fed trying to claw back about $12 Billion of bad currency. Interest rates saw a prime rate of 14%… home loans… with perfect credit and 20% down payment… 18-21%.

OF course… that’s back when the president and the majority party ruling the senate actually bothered to obey the law and produce a federal budget every year.

Welcome to Greater Detroit.

thatsafactjack on September 27, 2013 at 4:55 PM

Detroit is Dead
al Qaeda is still Alive
Obama 2012

mankai on September 27, 2013 at 4:55 PM

Of course, at least $300 million of that will be wasted on corruption, graft, crony capitalism, payoffs, etc.

Just like in DC.

RoadRunner on September 27, 2013 at 4:55 PM

U.S. President Barack Obama is committing at least $320 million to revive bankrupt Detroit, primarily through grant and funding programs, to raze blighted buildings, hire police and firefighters and improve transit.

Well isn’t that nice. What happens to the police and fire departments when the Obamabucks dry up? And how do you get rid of blight in a city that is nothing but? As to transit improvement- they have so many people there that commuter issues are a big deal?

Last election the filthy stupid coward in the White House said that he saved Detroit. This is nothing but putting yet another one of his failures on life support because the unions are already ticked off at him over Obamacare.

Happy Nomad on September 27, 2013 at 4:56 PM

Is that the cost of a nuke from outer space?

kim roy on September 27, 2013 at 4:56 PM

The dhimmicrats and unions are not finished lining their pockets.

davidk on September 27, 2013 at 4:58 PM

How much is that per stray dog?

Oil Can on September 27, 2013 at 4:50 PM

$9.99.

Steve Eggleston on September 27, 2013 at 4:53 PM

32 million stray dogs? That’s over 45 dogs per Detroit citizen.

Fenris on September 27, 2013 at 4:59 PM

Maybe I’m the only one, but I did a double take to make sure that the sign in the photo said “Founded 1701″ and not “Population 1701.”

Christien on September 27, 2013 at 4:59 PM

$320 million. That’s a lot of potatoes in those urban in-fill patches.

de rigueur on September 27, 2013 at 4:59 PM

to raze blighted buildings, hire police and firefighters and improve transit.

Better transit with no where to go.

davidk on September 27, 2013 at 5:00 PM

This is why the debt limit matters.

anotherJoe on September 27, 2013 at 5:01 PM

Of course, at least $300 million of that will be wasted on corruption, graft, crony capitalism, payoffs, etc.

Just like in DC.

RoadRunner on September 27, 2013 at 4:55 PM

True story.

Last Thanksgiving DC City Council member Marion Barry (yeah, that one) got $40K from an unnamed source for a turkey giveaway. There was some discussion over the ethics behind accepting the money. Somebody called into local talk radio with the absolute truth. With Barry the issue isn’t with the $40K in turkeys he is giving away, it is with the “other” $40K he got along with the contribution. DC’s Mayor is about to go to jail, the city council is a revolving door of disgraced councilmembers, and it isn’t getting any better.

Detroit, at least, has a fighting chance.

Happy Nomad on September 27, 2013 at 5:01 PM

And this surprises us why? We all knew it was coming. This is the new reality, spreading wealth we don’t have. Full speed ahead!

LeftCoastRight on September 27, 2013 at 5:01 PM

How much is that per stray dog?

Oil Can on September 27, 2013 at 4:50 PM

$9.99.

Steve Eggleston on September 27, 2013 at 4:53 PM

32 million stray dogs? That’s over 45 dogs per Detroit citizen.

Fenris on September 27, 2013 at 4:59 PM

Maybe I’ll write a grant proposal to rid the city of stray dogs. Hone my shooting skills.

And I’m only being partly sarcastic.

davidk on September 27, 2013 at 5:03 PM

So it is progressive to malinvest limited resources into known failures?

Keep voting democrat…I guess…

Murphy9 on September 27, 2013 at 5:03 PM

Okay so all those other 900 bailouts failed, but that was different democrat administrations, this time it’ll be different I promise.

Libs

LincolntheHun on September 27, 2013 at 5:04 PM

As long as it comes out of the Obamas’ travel money and he doesn’t get it replaced, I have no problem with it. At a billion a year, they could do 3 such bailouts if they stopped their outrageous travel on the taxpayers’ dime.

talkingpoints on September 27, 2013 at 5:05 PM

pull it out of the EBT/Obamaphone/ACORN/OFA fund bub

DanMan on September 27, 2013 at 5:05 PM

Is that the cost of a nuke from outer space?

kim roy on September 27, 2013 at 4:56 PM

That would only cost a long distance phone call to North Korea, or maybe Putin….

dentarthurdent on September 27, 2013 at 5:08 PM

Pay no attention to the fact that places like Detroit, Baltimore, D.C., California, Illinois, etc., are all run by Democrats.

It is purely coincidence.

Christien on September 27, 2013 at 5:11 PM

Figures that criminal douchebag Holder is leading the “delegation”; moving in to save his people.

Bishop on September 27, 2013 at 5:12 PM

And, from where is Obama getting the money?

And, what will he say to San Bernardino, Stockton, Jefferson County, etc, and those like Shitcago and Los Angeles, which are both in bad shape?

Let him use his OWN STASH.

Resist We Much on September 27, 2013 at 5:13 PM

Maybe I’ll write a grant proposal to rid the city of stray dogs. Hone my shooting skills.
And I’m only being partly sarcastic.

davidk on September 27, 2013 at 5:03 PM

I’d feel bad about shooting dogs.
On the other hand, I have a t-shirt that says “The hardest part of the zombie apocalypse will be pretending I’m NOT excited” (with a silhouette of a hunting rifle). More and more, I view the word “zombie” as being an umbrella category that equates to a wide range of potential apocalypse targets….
I think Detroit is probably rich with potential zombie type targets, and I don’t mean dogs…

dentarthurdent on September 27, 2013 at 5:13 PM

And, from where is Obama getting the money?
Resist We Much on September 27, 2013 at 5:13 PM

The printing press in the basement….

dentarthurdent on September 27, 2013 at 5:14 PM

Happy Nomad on September 27, 2013 at 4:56 PM

You would think that a saved city which has been revitalizing for a year wouldn’t need $330 million…unless…UNLESS…Dog Eater was throwing out a bullshiite line for his slack-jawed believers. Nawwwwwww

Bishop on September 27, 2013 at 5:15 PM

And, from where is Obama getting the money?
Resist We Much on September 27, 2013 at 5:13 PM

The printing press in the basement….

dentarthurdent on September 27, 2013 at 5:14 PM

They don’t even print it any more. It is all entries in computers.

davidk on September 27, 2013 at 5:20 PM

I’d feel bad about shooting dogs.

…I think Detroit is probably rich with potential zombie type targets, and I don’t mean dogs…

dentarthurdent on September 27, 2013 at 5:13 PM

Dogs are pretty great. They’re immune to leftism.

Fenris on September 27, 2013 at 5:20 PM

Maybe I’ll write a grant proposal to rid the city of stray dogs. Hone my shooting skills.
And I’m only being partly sarcastic.

davidk on September 27, 2013 at 5:03 PM

I’d feel bad about shooting dogs.
On the other hand, I have a t-shirt that says “The hardest part of the zombie apocalypse will be pretending I’m NOT excited” (with a silhouette of a hunting rifle). More and more, I view the word “zombie” as being an umbrella category that equates to a wide range of potential apocalypse targets….
I think Detroit is probably rich with potential zombie type targets, and I don’t mean dogs…

dentarthurdent on September 27, 2013 at 5:13 PM

Feral dogs are extremely dangerous animals. There were places in southern Illinois (Buttermilk Hill was one place) where hunters were afraid to hunt because of wild dogs running packs.

davidk on September 27, 2013 at 5:23 PM

Well, if they wanted to flush the tax-payers money away, they found the perfect toilet.

squint on September 27, 2013 at 5:24 PM

Maybe I’ll write a grant proposal to rid the city of stray dogs. Hone my shooting skills.
And I’m only being partly sarcastic.

davidk on September 27, 2013 at 5:03 PM

I’d feel bad about shooting dogs.
On the other hand, I have a t-shirt that says “The hardest part of the zombie apocalypse will be pretending I’m NOT excited” (with a silhouette of a hunting rifle). More and more, I view the word “zombie” as being an umbrella category that equates to a wide range of potential apocalypse targets….
I think Detroit is probably rich with potential zombie type targets, and I don’t mean dogs…

dentarthurdent on September 27, 2013 at 5:13 PM

Feral dogs are extremely dangerous animals. There were places in southern Illinois (Buttermilk Hill was one place) where hunters were afraid to hunt because of wild dogs running in packs.

davidk on September 27, 2013 at 5:24 PM

Still messed it up.

davidk on September 27, 2013 at 5:25 PM

There is no money. What did King Barky the Incompetent take money away from to give to the ferals in Detroit?

jukin3 on September 27, 2013 at 5:27 PM

Bet he wouldn’t be bailing Detroit out if it were a conservative city. But then again, a conservative city probably wouldn’t be in the situation Detroit is in.

What this tells the Dems is go ahead and squander tax dollars with their corruption and social give aways because there won’t be any consequences. Our socialist administration has got your back.

iamsaved on September 27, 2013 at 5:27 PM

Dogs are pretty great. They’re immune to leftism.

Fenris on September 27, 2013 at 5:20 PM

Well at least my dogs try to do something useful in return for the handouts they get from me – guard the house; bark at salespeople; force me to rub their bellies; lick my face; chase off squirrels, birds, mice, coyotes; abuse the cats, pee on the carpet…..
And for their part, the cats actually kill mice that get in the house.

Unlike the leftists collecting handouts of my tax money – nope, can’t think of ANYTHING useful they do….

dentarthurdent on September 27, 2013 at 5:29 PM

Don’t send everything to Detroit; save some for DeBlasioCity, they’re going to need it after he gets started.

Another Drew on September 27, 2013 at 5:31 PM

davidk on September 27, 2013 at 5:23 PM

I could shoot something that attacks me.
I’d have a tough time just going out and shooting dogs if they’re not directly threatening me – same even with the coyotes we have in the greenway area (EPA designated Prebles Meadow Jumping mouse habitat) behind my house.

dentarthurdent on September 27, 2013 at 5:33 PM

Still messed it up.

davidk on September 27, 2013 at 5:25 PM

Unlike Obama, you can recognize when you get something wrong.

dentarthurdent on September 27, 2013 at 5:29 PM

Ya, but cats bring the mouse in in the first place before they play with it to death and leave a bloody spot.

Fenris on September 27, 2013 at 5:35 PM

I’d love to see Erika on the beach at Sanya

DarkCurrent on September 27, 2013 at 5:39 PM

Damn

DarkCurrent on September 27, 2013 at 5:40 PM

Ya, but cats bring the mouse in in the first place before they play with it to death and leave a bloody spot.

Fenris on September 27, 2013 at 5:35 PM

Our cats don’t go outside (see above comment about coyotes in the area) – so they are definitely mice that get into the house on their own.
The cats like to leave a collection of mouse body parts at the foot of bed, in front of the bedroom door, at the bottom of the stairs, etc – as a present for us….
Aint that sweeeeeet….

dentarthurdent on September 27, 2013 at 5:40 PM

I’d love to see Erika on the beach at Sanya

DarkCurrent on September 27, 2013 at 5:39 PM

Huh? What? Where’d that come from?
I like the way you think, but need more context….

dentarthurdent on September 27, 2013 at 5:42 PM

Let him use his OWN STASH.

Resist We Much on September 27, 2013 at 5:13 PM

It are all his own stash. Now get on with raising that borrowing ceiling, Pubbies!

de rigueur on September 27, 2013 at 5:43 PM

Detroit should just change it’s charter from being a city to being a green energy company.

Problem solved in terms of getting money from D.C.

MichaelGabriel on September 27, 2013 at 5:47 PM

Earl Scheib will paint the whole city for $29.95…

Oldnuke on September 27, 2013 at 5:50 PM

What agency has 320 mil laying around that the executive branch can unilaterally reappropriate?

You hear that Bohner? Your only purpose in the House is to raise the debt ceiling without limits, the Prez will worry about where the money goes.

antipc on September 27, 2013 at 5:54 PM

Ew. Creepy.

Christien on September 27, 2013 at 5:59 PM

Yes Creepy.

-

Also, back on topic: I guess money does grow on trees…

CW on September 27, 2013 at 6:00 PM

32 million stray dogs? That’s over 45 dogs per Detroit citizen.

Fenris on September 27, 2013 at 4:59 PM

Well, they’re not spayed or neutered, their gestation cycle is quite a bit shorter than the two-legged Detriot resident, and they pump out multiple puppies per litter.

Steve Eggleston on September 27, 2013 at 6:05 PM

What agency has 320 mil laying around that the executive branch can unilaterally reappropriate?

DoD!
It’s the money they would have spent for air-shows and fly-by’s if not for the Sequester.

Another Drew on September 27, 2013 at 6:11 PM

Well, they’re not spayed or neutered, their gestation cycle is quite a bit shorter than the two-legged Detriot resident, and they pump out multiple puppies per litter.

Steve Eggleston on September 27, 2013 at 6:05 PM

I think most of your points actually apply to the non-canine residents of Detroit just as well….
And I would say the feral canines are generally less dangerous and cause less damage…..

dentarthurdent on September 27, 2013 at 6:12 PM

DoD!
It’s the money they would have spent for air-shows and fly-by’s if not for the Sequester.

Another Drew on September 27, 2013 at 6:11 PM

But that’s already been sent to the Syrian rebels.
Try again.

dentarthurdent on September 27, 2013 at 6:13 PM

More money down the s-hole…

PatriotRider on September 27, 2013 at 4:47 PM

Well at least it will be wasted in country. Bark just gave Turkey $200 million to ease the struggle of Muslim youts choosing between Grand Theft Auto and cutting the genitals off kafirs in Kenyan malls.

BL@KBIRD on September 27, 2013 at 6:14 PM

dentarthurdent on September 27, 2013 at 6:12 PM

And, just like dogs, you can teach them to do just about anything with handouts.

Fenris on September 27, 2013 at 6:14 PM

Give the $320 million to the Air Force. They’ll do a better job then the clowns these Democrats will hire.

And who, incidentally, were BIG campaign donors.

GarandFan on September 27, 2013 at 7:44 PM

1. $320 million goes into Detroit’s city government.

2. Half goes to the “pension fund”.

3. Half of that goes back to OFA, etc., as “contributions”.

4. The other half of the total goes to “community organizers”.

5. Two-thirds of that gets split between OFA & co. and various “political figures”.

6. PROFIT! (For all of the above.)

And that’s just Round One. Wait ’til you see Detroit- The Sequel.

Followed by Chicago, L.A., Seattle, DC, Cleveland, etc.

clear ether

eon

eon on September 27, 2013 at 8:07 PM

And, just like dogs, you can teach them to do just about anything with handouts.

Fenris on September 27, 2013 at 6:14 PM

Ya, but can we give them the old pink juice when we no longer have any use for them?

dentarthurdent on September 27, 2013 at 8:19 PM

The Left will move heaven and hell to protect their biggest boondoggle and California will watch every step to copy it. What will be interesting are the reasons the left will give the MSM and why, while the rest of us see it as it is, bogus to the max.

mixplix on September 27, 2013 at 8:35 PM

The larger problem is that Obama has slush funds (with hundreds of millions of dollars in them) that he can waste on a whim. I’m guessing if the government really did shut down (it won’t) it would have zero effect on this.

Fenris on September 27, 2013 at 4:49 PM

This. Is there even a pretense of legal authority under which Obama can do this?

toby11 on September 27, 2013 at 9:04 PM

Listened to WWJ while I was in the area this afternoon.

The money is, according to the report, an advance on grants that the city was supposed to get… and is now getting it sooner.

This part, though, fascinated me.

The reporter said of the grant money that $2 million was going to go to bolster Detroit’s police force.

He said that that grant would enable the city to hire 10 officers.

Basic math — that’s $200K per officer. Detroit doesn’t pay its cops anywhere near that.

Damn, they better be good.

either orr on September 27, 2013 at 10:14 PM

Like donating to crack addicts. They’ll spend it responsibly, of course.

Philly on September 27, 2013 at 10:49 PM

At least Kevyn Orr is running things, and the light of day is being shone on the pension funds. If Orr and others ensure the money is used appropriately, and the extra payouts from the pension funds can be recovered (by reducing employees’ future benefits by that amount), then it won’t have been a total waste.

The state constitution guarantees the pensions, so Orr’s hands are tied there, unless he can prove gross misconduct on the part of the pension administrators, in court.

Ward Cleaver on September 28, 2013 at 12:36 AM

“The President and members of the President’s senior team continue to closely monitor the situation in Detroit.”
–Jay Carney

Press secretaries say stupid things.

This makes it sound like Obama and Alexrod are bent over a ham radio, listening to the Police and citizens bands, with worried looks on their face. :P

itsspideyman on September 28, 2013 at 2:08 AM

At least Kevyn Orr is running things, and the light of day is being shone on the pension funds. If Orr and others ensure the money is used appropriately, and the extra payouts from the pension funds can be recovered (by reducing employees’ future benefits by that amount), then it won’t have been a total waste.

The state constitution guarantees the pensions, so Orr’s hands are tied there, unless he can prove gross misconduct on the part of the pension administrators, in court.

Ward Cleaver on September 28, 2013 at 12:36 AM

Keep in mind that since it’s Federal money, the Feds will tell Orr what to do with it. And they take their orders from The One and his minions.

The fix is already in, trust me. Instead of $200K per new cop hire, think “One dollar and eighty-three cents for a new piece of braid on the Chief’s uniform cover”.

The rest? You’ll hear “Happy Days Are Here Again” and “Back In Business” (from Dick Tracy) playing in the offices of all the usual suspects.

clear ether

eon

eon on September 28, 2013 at 8:32 AM

This is a joke. Revitalize for what reason, to draw families and entrepreneurs into a city so dangerous that cops have to travel in 4 man, 2 car squads just to protect themselves.

Bishop on September 27, 2013 at 4:47 PM

Yep. As a Michigander living in the hinterlands, we are sick and tired of propping up that self-destructive sheet hole.
In 1962, my 60 year-old Sainted Grandfather, and former horse cavalryman (Michigan Nat’l Guard who smashed heads in Flint in the early 1930s Union riots while aboard his War Horse), was beaten nearly to death by a group of “urbanites” in Detroit when he went to the defense of a White woman being molested by locals. My Grandfather, a tall, proud, stately gentleman, relocated my Sainted Grandmother to the hinterlands not far from where I currently reside. A few years later, my father relocated us to Scottsdale, Arizona, then a sleepy little cow town. No More, but lest I digress …
I still remember the Ford River Rouge Plant, the “Seven Sisters” (7 enormous smoke stacks along the river and lake) and other sites where manufacturing had ruled the economy for decades.
And then … the 1967 riots. Whites fled in droves and justifiably so.
The “leadership” of Detroit since then has been a complete disaster, except for the current Mayor, Dave Bing, NBA Hall of Famer. The Leftist pols thought that appeasing the urbanite “community” would end the White Flight. Never happened. Detroit now has less than half the population it had in the early 1960s. No more property taxes to be stolen.
Let the modern-day yuppies move in and make their homes there – oh wait – major retailers refuse to endanger their employees and customers.
The only reason to venture into Detroit these days are the Red Wings (Hockey), Tigers (baseball), and the occasional concert at a “casino”. Heck, even the “North American International Auto Show” – a joke – at Cobo Hall is awful. An ancient venue that is literally falling apart.
And then, there was Mayor Coleman Young, King Kwame ‘Can’t Touch This’ Kilpatrick who both looted the City treasury. That is “progress”.
~(Ä)~

Karl Magnus on September 28, 2013 at 9:49 AM

That’s odd – a lengthy post from one who was born and raised in Detroit doesn’t show up.
Must one copy and save posts here too now, or is it just me?
~(Ä)~

Karl Magnus on September 28, 2013 at 9:53 AM

Can’t wait for Detroit in the World Series and they show the blimp view of Detroit

jaywemm on September 28, 2013 at 11:22 AM

Can’t wait for Detroit in the World Series and they show the blimp view of Detroit

jaywemm on September 28, 2013 at 11:22 AM

I can tell you that any aerial footage of Detroit stops about two blocks from the river front – and usually looks toward the pristine Canadian border. Trust me, just three blocks from the new downtown, it’s urban blight.
~(Ä)~

Karl Magnus on September 28, 2013 at 11:45 AM