Feds Find $100M to give Detroit

Last week Nancy Pelosi told CNN “The cupboard is bare – there’s no more cuts to make.”

Despite a bare cupboard, sequesters and the possibility of shutting down the government, they managed to scrape up $100M in grants to help out the largest bankruptcy ever.


Fox News says The Obama administration has found $100 million to send to struggling Detroit, despite recurring claims that the government cannot afford to make any more spending cuts.

Gene Sperling, chief economic adviser to President Obama, told the Associated Press the administration scrounged through the federal budget and found untapped money that “either had not flowed or had not gotten out or not directed to the top priorities.”

That money is now being sent to Detroit.

Considering the Motor City is at least $18 billion in debt, it will take a far larger infusion of cash or historic deals with bond holders, insurance companies and other creditors to correct the problem.

But the $100 million infusion is a step toward greater federal involvement.

Sperling and three other top Obama aides — U.S. Attorney General Eric Holder, Transportation Secretary Anthony Foxx and HUD Secretary Shaun Donovan — will meet with state and local officials Friday during a closed-door meeting with Gov. Rick Snyder, state-appointed emergency manager Kevyn Orr, Mayor Dave Bing and community and business leaders.

The federal money being directed Detroit’s way by the U.S. government will be augmented by millions of dollars more in resources from foundations and Detroit businesses

The Obama administration repeatedly had signaled it would not offer a massive federal bailout like the one credited with helping rescue Chrysler and General Motors.

“There is not going to be a bailout,” Democratic U.S. Sen. Carl Levin told The Associated Press on Wednesday. “We have enough problems with the federal deficit. We need to be creative and look at existing programs. There are still some funds there.”

The funding announced by Sperling will include $65 million in Community Development Block Grants for blight eradication, $25 million in a public-private collaboration for commercial building demolition and nearly $11 million in funds to ensure working families can live in safe neighborhoods.

Holder will announce $3 million that, in part, will be used to hire new police officers. About $25 million also will be expedited to Detroit to hire about 140 firefighters and buy new gear.

“It wasn’t enough to try and free the resources,” Sperling said. “We had to make sure they are well-used and targeted.”

In addition, Orr, the city’s emergency manager, has told the city’s two municipal retirement systems he wants to freeze Detroit’s pension plans and move to a 401(k)-style system.

The gathering Friday follows a series of meetings with the White House to plot ways to pull Detroit from a fiscal pit that this summer made it the largest U.S. city to file for bankruptcy protection.

Detroit has had a poor record in making sure grant money is used properly and even spent at all.

In 2011, Mayor Dave Bing fired the director of the city’s Human Services Department after an internal investigation revealed $200,000 intended for poor residents was spent on office furniture for staff members.

The following year, his office had to scramble to use about $20 million in grants that had been left sitting for demolitions of thousands of vacant houses. The city’s Police Department also allowed a $400,000 grant to lapse for a new armored vehicle.

The grant troubles have rankled Orr, the emergency manager Gov. Rick Snyder appointed to lead the city out of its financial mess.

Orr has said Detroit is so poor that it can’t afford to lose out on any resources. In July, he made Detroit the largest U.S. city to file for bankruptcy protection.

Grants only can pay for things the city otherwise couldn’t afford. Several businesses even pitched in $8 million earlier this year to help pay for a new fleet of emergency vehicles, including 23 EMS units and 100 police cars, to boost public safety and reduce response times.

Police Chief James Craig said Thursday that he was in Washington a few weeks ago in search of federal resources for his department.


So, it’s not a bail-out, exactly, but it is bucket loads of money out of our pockets going into the Detroit coffers.

I don’t have a problem with helping out a city after a disaster strikes, but I have a huge problem with helping a city who has a history of mismanagement and aren’t being compelled to change their accounting practices as a trade off for funds.

The part about this that pisses me off the most, is the fact that I found this headline way down on the third page of Fox’s US news page. Why bury it so far down? I couldn’t find it  on other news sites, so you should be proud – you’re the only one running it!

Or could it be that Fox doesn’t want everyone getting riled up over this? It might take away from the Obamacare fight everyone is focused on. It might show that our government isn’t so broke after all. Fair and balanced, my arse.


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13 Responses to Feds Find $100M to give Detroit

  1. Mrs AL says:

    What a pile of dog doo. Couldn’t ya’ just spit (eek… wha’s that stuff stuck on my ‘puter screen)!

    My patience long ago ran out. Now I am truly angry. Money is often at the root of couple’s divorcing. Well I am going to divorce those pine cones in D.C. and sue for all the property I can. This move is, perhaps, the most egregious action possible (in the context of the budget and debt ceiling debates) that I have witnessed in my lifetime.

    There is a straw that breaks the camel’s back and this is it for me.

    Great post, Kathy. Sorry to go off, but we all reach our breaking point. Thanx for letting me spout off.

    • Kathy says:

      Thank you, ma’am, and you spout off any time you want! That’s what we do best, and this one torqued my jaw right out of socket.

      You can also count on them pouring more money into this – all of O’s yes-men will jump on the bandwagon with him.

  2. It’s not a bailout – It’s a damn GIFT, and will NEVER be repaid, I’ll betcha 100 – 1.

    “The federal money being directed Detroit’s way by the U.S. government will be augmented by millions of dollars more in resources from foundations and Detroit businesses.” As if the business remaining in Detroit aren’t already taxed and “Gifting” to the MARROW of their bones~!~!

    As for the comment from Mrs. AL,,, DITTO~!
    And a DITTO~! to Kathy, as well~!

  3. Clyde says:

    It’s a goddamn bailout. And, Fox News has the amount WRONG. It is, get that pisstivity meter wound up, 300 MILLION.

  4. Hardnox says:

    Disgusting yet predictable. There are a lot of lefty voters there.

    In the meantime, the WH is closed to the public and the troops in theater are not eating breakfast. This is BULLSHIT!!!!!!!!!!!!!!!

    • Kathy says:

      Yes, it certainly is. This is the most corrupt, lying, back-stabbing administration in history.

    • Clyde says:

      Here is a tidbit I saw on the snooze. The FEDS are sending in an “overseer” to make sure the $ 300 million is used “wisely”. We ALL know what THAT means. Can you say “Slush Fund” ? Can you say, Obama OWNS Detroit? The leftist bastards are all agog-gog over it, apparently they WANT the federal government to control the mess that is Detruit. Here is another angle. The leftists in this state, from the odious Bob King, of the communistic UAW, is LIVID Snyder was elected in the first place. Now that Michigan has gotten it’s financial house in somewhat order, after the damnable Granholm got the state OVER $3 billion in DEFICIT from a $1billion SURPLUS, the wool has been removed from a number of eyes, Snyder is up for reelection next year, the democrats are going to do ALL THEY CAN to try and buy Snyder’s defeat. From trying to “fix” Detroit, to improving the business climate with the passage of RTW, you name it, the damned democrats are mad as hell about it. The Ann Arbor moonbats had a petition going around to try to have Snyder’s name removed as an Ann Arbor resident. This is the juvenilism coming out of the assholes around here. Sickening, but NOT surprising.

  5. Buck says:

    They haven’t the money to continue White House tours but have money to give to a city that shot itself in the foot??