Bingo.

some kind of special gift when they are actually deferred pay for services rendered. Properly speaking, the pensions should at least be in the same class as any other payments owed to contractors and vendors, if not at the head of that class! Bond holders took a risk, they should be paid next. Bank loans should be paid last!

On edit: I should also add that this legal action originating in an Ingham County Court likely won't stand. The Lansing City Pulse did an excellent piece last year about how the Ingham County Courts have consistently blocked legislation in an attempt to keep the Republican's from running roughshod over the State.

Although given that the higher courts are also controlled by the conservatives .. this ruling will, as in other cases, likely be overturned.

There are approximately 9 BILLION in unfunded pension liabilities on Detroit's books. There is absolutely no way that Detroit can ever hope to pay those pensions with their future tax revenues, their assets, or by borrowing.

How do those debts get paid if they only bankrupt the other 11 billion in debt?

The tax base of Detroit doesn't extend to the homes and businesses in other cities and towns.

Would you just let Detroit tax everything within greater southeast Michigan?

In any case, how are you going to get BILLIONS in new tax revenues?

Jesus.

I want to see no one get rich off a scheme where people lose their pensions.

Basically pull their heads out of their *.

That is how much each resident of Detroit would have to pay to satisfy the current debt.

Weed and "sustainable communities" are going to make that equation balance?

...I'm going to scream.

In Colorado, they made it legal, and now people are howling over it being taxed at anything > 0.

weed is just one way to get a group of people who spend their money... throw week long concerts, sell beer!

I see a thread about "what went wrong in Detroit" but a lot of people don't seem to understand this was a shock doctrine thing by Snyder.

Previous Governors failing to act on this failed ungovernable city was not somehow virtuous.

Fire the manager and get someone competent enough to handle the job imo.

his objectives were.

We have no idea what the true agenda is here.

With a little privatizing on the side.
Snyder wants to Romney-ize Detroit.
And doesn't some rich group want to buy Belle Isle and turn it into Belle Isle Commonwealth?
Truly a feast for the vulture capitalists.

I would imagine the developer believes he has a much better chance, now.
How convenient.

This judge's orders have no legal meaning.

Inquiring minds want to know

This action was filed under Chapter 9 of the federal bankruptcy code. Federal law preempts state laws or constitutions if there is a conflict. There is a conflict here so the state loses. It is also why the judge made the totally political move of having her order sent to President Obama. She knows legally it has no meaning.

over and above that, the Judges ruling was based on something that had not yet occurred. Her premise was that the bankruptcy could not proceed, the pension obligations MIGHT be impacted, which would be in breach of the Michigan constitution. The problem with that logic is that you can't issue a court order based on something that may or may not happen, that's not the role of the Judicial system. My guess is that her ruling will be swiftly overturned at the appellate level.

If the Michigan constitution didn't give the authority to the state to file this with the federal court, the court could decide that the petition was improperly filed. Alternately, the federal court could recognize the state limitation on pensions and impose that at the federal level, on the basis that the petitioner could only legally file (and therefor have standing) if the pensions were protected.

Unfortunately I don't expect the federal court to do that.

Marcy Wheeler @emptywheel may have put it best...

There's an asshole rightwinger that's on CBC (Canadian TV) talking about business news all the time. He was having a great old time yesterday proclaiming this is what unions do to cities and that this means there's going to be a surge of this all over the US and Canada and he cackled with glee that the Unions are DONE because of this. I think he let their plan slip.

NPR News just mentioned other cities watching this as a test case.

Test case .. trial balloon .. canary in the coal mine .. they all apply.

for the PUSH BACK!