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Wednesday, March 14, 2012

Detroit Consent Agreement: 10 Things To Know

Dave Bing
Detroit Mayor Dave Bing

Michigan Gov. Rick Snyder and the state Treasury Department on Tuesday circulated a draft of a proposed consent agreement between the state and the city of Detroit that proponents say would help solve the city's fiscal woes. The governor says accepting a consent agreement is the only way Detroit can avoid an emergency manager.
The consent agreement is allowed under Public Act 4, Michigan's emergency manager law, which allows the governor to review cash-strapped municipalities and school districts and decide whether state intervention is needed.
A Snyder-appoiinted financial review team examined Detroit's books to come up with a consent agreement that affords broad powers to Mayor Dave Bing and state Treasurer Andy Dillon -- and weakens City Council and the city's public employee unions. The consent agreement would also grant city officials, and a new Financial Advisory Board, many of the same powers as an emergency manager.
Detroit's financial review team met Tuesday to discuss the draft, but has not yet decided whether to recommend it.
Here are 10 highlights of the plan. Read the whole thing here.
10. Financial Advisory Board will hold all the power.
Instead of one emergency manager, the consent agreement would bring in nine.
It establishes a nine-member "Financial Advisory Board" made up of appointees from the governor, Treasurer, mayor and City Council. This board will have all control over the city's finances and not a dime can be spent without its approval.
The board has absolute power over the city's budget and the implementation of the "recovery plan" partially laid out in the agreement. The document lists "potential initial actions" the city could take to reduce its deficit, including cutting staff, outsourcing departments and selling city assets.
The mayor and City Council are not allowed to develop their own budgets or budget proposals without the consent of the Financial Advisory Board.
Treasurer Andy Dillon, one of the Review Board's appointed members, will also have the power to unilaterally veto some of its decisions.
9. Financial Advisory Board salaries alone will cost Detroiters $200,000
The consent agreement declares compensation for Financial Advisory Board members will be $25,000 each, excluding the Treasurer.
The salary and expenses incurred by board members will be reimbursed by the state Treasury Department, but then billed to the City of Detroit. The city will also pay for any staff or other expenses needed for the board to operate.
The board member salaries come to about the same price as the average single emergency manager: $200,000 total. (Pontiac Emergency Manager Lou Schimmel makes $105,000; Detroit Public Schools Emergency Manager Roy Roberts makes $280,000.) Though appointed by the governor, emergency managers are paid by the municipal bodies they run, not the state, and it appears the Financial Advisory Board would operate in the same way.
8. Bing gets emergency manager powers.
Some have said a consent agreement with the state would make Detroit Mayor Dave Bing a de factoemergency manager, but the agreement pretty much makes him emergency manager de jure.
Section 2.5 is titled "Grant of Emergency Manager Authority" and "grants the Mayor the powers prescribed for emergency managers in Section 19 [of Public Act 4]."
One exception: Bing will not have the power to break collective bargaining or other contracts. Neither does the Financial Advisory Board.
7. City Council loses almost all its power.
City Council gets to appoint one member to the all-powerful Financial Advisory Board, but that's about the extent of the legislative body's role under the agreement. Council does have the right, along with the mayor, to appoint three more members of the Financial Advisory Board, but they must be chosen from a list pre-approved by Gov. Snyder.
Council can continue to meet and pass laws, but it cannot do anything to violate the consent agreement (see below) and will have no power over budgeting.
6. Detroit's budget process could look more like the state of Michigan's.
It seems Snyder is pleased with his own success balancing the state budget and wants to bring some of his measures directly to the city. The consent agreement recommends the Financial Advisory Board consider modifying the city's corporate tax. It also mandates the city prepare a second-year planning budget.
Snyder overhauled Michigan's business tax last year. Bing has said he would like to raise Detroit's corporate tax to 1.9 percent from 1 percent.
5. Cash influx still possible from revenue sharing and state loans.
It does not lay out any specifics about requesting loans or additional revenue from the state of Michigan, but the agreement does allow for the consideration of "the City's ability to obtain additional financing pursuant to the Emergency Municipal Loan Act."
It also claims the state will maintain its existing revenue-sharing agreements with the city -- though that means little for the $220 million the mayor and City Council have said Michigan owes Detroit under past agreements.
4. The agreement could eliminate bargaining between the city and its unions entirely.
While the consent agreement does not invoke the section of Public Act 4 that allows an emergency manager to abrogate collective bargaining agreements, it does contain a clause eliminating the city's "duty to bargain":
5.3 Duty to Bargain. Consistent with Section 14a(10) of Public Act 4, it is the Treasurer's determination that the duty of the City to bargain pursuant to Section 15 of Public Act 336 of 1947, the Public Employment Relations Act, shall cease beginning 30 days after the effective date of this Agreement.
The Public Employment Relations Act established collective bargaining for public employees in Michigan and Section 15 appears to be the portion that says both sides -- employee and employer -- must bargain in good faith, through union and government representatives. The consent agreement appears to exempt the city from having to negotiate with unions under state law.
3. Consent agreement renders itself bullet- (and lawsuit-)proof.
City Council, city employees and city unions are not allowed to challenge the consent agreement -- or even Public Act 4 -- at all, lest they risk placing the city under an emergency manager, entering it into Chapter 9 bankruptcy, or losing its state revenue sharing:
Any (a) action by the City or the City Council (or any department, agency or other entity organized within, or officer, agent, representative or employee acting on behalf of, the City and the City Council) or its unions to contest, through legal proceedings or otherwise, the constitutionality, validity or enforceability of Public Act 4, this Agreement or the powers and/or jurisdiction of the Financial Advisory Board [...] may, among other things, (x) be considered sufficient cause by the Financial Advisory Board to recommend (i) the immediate appointment of an emergency manager pursuant to Section 15 of Public Act 4 or any other applicable law, any provisions of Sections 15(2) and 15(3) of Public Act 4 to the contrary notwithstanding, and (ii) the commencement of proceedings under chapter 9 of title 11 of the United States Code pursuant to Section 23 of Public Act 4 or any other applicable law and/or (y) result in the suspension of (i) discretionary state revenue sharing initiatives and agreements between the State and the City pursuant to Public Act 140 and/or (ii) other financial initiatives and agreements between the State and the City, in each case to the extent permitted by law.
2. Even "acts of God" can't temper the agreement's strength.
A compliance clause insists the consent agreement must be carried out no matter what:
8.1 The obligations of the City as expressed and agreed to herein are not subject to release or discharge due to any contingencies, including, but not limited to, clerical errors, computer failures, late mailings or the failure to comply with reporting due dates or other scheduled due dates due to adverse weather, acts of God, acts of third parties or compliance with court orders.
Neither hell nor high water (nor any pesky court orders) could buy Detroit time to complete its obligations under the agreement.
1. Authority of the consent agreement could be indefinite.
The agreement would remain in effect until the city has met its financial solvency benchmarks for three full years. The Financial Advisory Board can extend the term of the agreement "in its sole discretion (subject only to the approval of the Governor), notwithstanding the existence of Financial Stability."
And it will remain in effect regardless of what happens to Public Act 4 -- which faces a repeal effort.
WATCH: State Sen. Bert Johnson (D-Highland Park) condemns the consent agreement on the Michigan Senate floor.



Detroit Consent Agreement Proposal, March 12, 2012

Thursday, November 14, 2019

How The City Of Hamtramck Treats Its Retired Officers - It Sucks & Was Planned - Just Ask Kathy Angerer

Jackie is one of those individuals you will not meet very often in your life.

She has a story.

She took in kids to save them from the foster care system.

Image may contain: 3 people, people smiling, eyeglasses, suit and indoor
Kathy Angerer, Brian Calley & Ibrahim Aljahim
She was an officer of the law who qualified for SNAP benefits.

She and I tried to get a juvenile officer position for the City of Hamtramck Police, but City Council had other uses for that money.

Just ask Tom Jankowski or Karen Majewski, but I believe we should focus on Kathy Angerer because she has lots of tales when it comes to the Emergency Manager of Hamtramck and Andy Dillon.

Oh, the stories I shall tell about Hamtramck and its City Attorney.

For retired the Hamtramck Police, I know about the health insurance cuts because they were planned.

The plan was to jack the contracts, where the union would go to court and win, but the city would appeal, taking years, whereby Obamacare was supposed to kick in, so the City would not have to pay health care benefits.

That is what Obamacare was really about - privatizing health care in the public sector so there would be more money for stealin' the children, land and votes.

If anyone is reading this, reach out and help her and her family, please.

This breaks my heart.

If you think we treat our veterans poorly, take a look at our retired officers of the peace.

'It so hurtful.' Retired Hamtramck police detective describes hundreds losing health insurance benefits


HAMTRAMCK, Mich. (WXYZ) — For the past 24 years, Detective Jacqueline Crachiola bravely put her life on the line in order to help keep city streets safe.

But, she says she recently learned about devastating cuts to the health insurance benefits of Hamtramck police and fire retirees.

“It so hurtful, and this is something I have to explain to my family now, just before the holidays,” says Jacqueline.

She adds, “Of all things, I read about it on Facebook, then got a letter from the city in late October.”

As of now, she says the changes are expected to take affect on January 1st. They are being implemented as a cost saving measure, and will represent nearly an 80% reduction in coverage.

Crachiola says a loop hole in their contracts is making the cuts possible.

We have reached out to the city manager for Hamtramck for comment but have not heard back yet.

“For so many of us, there are injuries and emotional pains from being in this line of work and we really need the help now,” says Crachiola.

Voting is beautiful, be beautiful ~ vote.©

Monday, April 15, 2019

DOJ: Court Holds Former Detroit Tax Return Preparer in Contempt of Court for Violating Injunction Order - Happy Child Abuse Propaganda Month

They only do what everyone else is doing, just ask the Michigan Department of Health and Human Services & the Department of Treasury about the Children's Trust Fund.

Where is Andy Dillon?

Anyway, never forget, April is Child Abuse Propaganda Month, so enjoy it because April 15th is the last day to file your taxes and donate to the Children's Trust Fund!


Image result for Dieasha Davis
Dieasha Davis
Dieasha Davis ordered to pay over $24,000 in costs and disgorge all fees she earned since entry of an injunction barring her from preparing federal tax returns

On Friday, a federal court in Detroit, Michigan, found Dieasha Davis in civil contempt of a permanent injunction barring her from operating a tax return preparation business and preparing federal tax returns for others, the Justice Department announced. 
In the contempt order, Judge Denise Page Hood found that Davis continued to prepare federal income tax returns and profited from preparing tax returns in violation of the court’s injunction, which had been entered against her and the business on September 25, 2017. Davis and the business agreed to the 2017 civil injunction order.
In February, 2019, following an investigation of Davis’ activities, the United States presented to the district court what the court on Friday found was clear and convincing evidence that Davis had violated the injunction. The court entered an order requiring Davis to file a written response to show cause why she should not be held in civil contempt. Davis did not file any response.
Based on the evidence submitted by the United States, the court also found that tax returns Davis prepared in violation of the injunction contained false and fraudulent information after entry of the injunction.
In addition, the court ordered Davis to pay to the United States $24,671 for attorney fees and costs incurred in detecting Davis’ non-compliance and bringing her violations of the injunction to the court’s attention.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website about selecting a return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

Child Abuse Prevention Month

Pinwheels for Prevention LogoSince 1985, April has been nationally recognized as Child Abuse Prevention Month. The Michigan Children's Trust Fund (CTF) has used this special time each year to acknowledge the importance of families and communities working together to prevent child maltreatment in all its forms.

On April 25, 2019, at 11:00 AM the MI CTF will host the 11th annual State of Michigan's Child Abuse Prevention Awareness Day Rally, procession and pinwheel garden planting event in recognition of Child Abuse Prevention Month. (Note: The pinwheel is the nationally recognized symbol for child abuse and neglect prevention. It also symbolizes the belief that every child has the right to grow and flourish to his/her full potential within a nurturing environment.)
Our Child Abuse Prevention Awareness Day rally will be held at the steps of the State Capitol in downtown Lansing.

This one hour event will bring together notable speakers, entertainment and hundreds of people to recognize the issues of child maltreatment and the geat prevention work being accomplished, and to honor all the children and families of Michigan.

The event's theme will once more be The Power of One. This statewide initiative under the leadership of the Children's Trust Fund asserts that the power of one person, one community, one dollar and one action can make a positive impact on the prevention of child abuse.

For more information about Child Abuse Prevention Awareness Day, please feel free to contact Emily Schuster-Wachsberger 
at wachsbergere@michigan.gov or517-335-0671


Happy Child Abuse Propaganda Month!

Voting is beautiful, be beautiful ~ vote.©

Monday, November 9, 2015

Michigan Water Decisions Intentionally Targets Poor Kids

First, Michigan intentionally poisons the children of Flint, then it turns around and starts sending out water shut-off notices.

The worst part is not that these state people knew what could happen to the children, nor is it the fact they knew what was happening to the children; they lied.

Flint, second to Detroit, has an astronomical rate of child poverty.

I guess Michigan is reinventing the concept of Targeted Populations.

Welcome to Michigan's child welfare policy.  #DOJ


#DanWyant engaged in a massive action of generational mutation under the guidance of nefarious special interests, just to profit from child welfare.

Year before water change, state knew of risks in Flint

State and local officials knew in 2013 that without proper treatment of water drawn from the Flint River, they risked subjecting the people of Flint to lead-contaminated drinking water.

But the next year, the Michigan Department of Environmental Quality OK'd Flint's plan to pump water from the river, and into residents' homes, without adding an important chemical that would prevent contamination from lead in old pipes.

A report commissioned by Flint in 2011 evaluating the Flint River as a long-term source of drinking water, and delivered by the city to the Michigan Department of Environmental Quality two years later, included that chemical — phosphate, often referred to as corrosion control — on a list of chemicals required to make river water safe to drink. Two years later, a Flint employee emailed the report to an MDEQ drinking water official, who passed it along to another state staffer, documents obtained by the Free Press via a Freedom of Information Act request show.

For water treatment professionals, the importance of phosphates is obvious: More corrosive water is more likely to degrade the interior of service lines, allowing dangerous substances from those pipes to enter the water. By forming a barrier inside service lines and plumbing pipes, phosphates limit the corrosive effect of water, and stop lead from contaminating the water.

It's also common knowledge that river water, subject to constant changes of temperature and makeup, tends to be more corrosive than lake water — and is likely to require treatment with phosphates. Nor is it a mystery that an aging, broke city like Flint would have older homes with lead plumbing, or that its water distribution system would include lead service lines or welds.

And this is why the Michigan Department of Environmental Quality's public response to the drinking water crisis in Flint — a spike in lead levels that's resulted in an increased number of lead poisoned kids — doesn't add up.

By the time MDEQ acknowledged that Flint's water supply was compromised, it was September. The city never started corrosion control. It rejoined DWSD last month.

Warnings unheeded
The report certainly didn't alter the outcome in Flint. But it doesn't even seem to have caused drinking water managers at the city or the state to question the city's water treatment plan, to wonder whether perhaps river water should be treated for corrosion control.

And that, perhaps, is the most shocking part of Flint's water debacle. None of these warnings — not a report listing corrosion control as a requirement for using Flint River water, not test results showing rising lead levels, not an EPA memo calling the city's findings into question — moved the state to action.

Not even a local pediatrician's analysis of blood-lead level screenings for hundreds of Flint kids — finding that an increasing number had elevated blood-lead levels, a reversal of a decades-long trend — caused a sense of urgency among state regulators. For more than a week, spokespeople for Gov. Rick Snyder and MDEQ downplayed and discredited the results.
It's incomprehensible.

MDEQ is charged with overseeing compliance with environmental regulations across the state, with ensuring that companies and cities follow local, state and federal guidelines.

In Flint, there was another layer of state oversight — that city spent the last two years under the oversight of a state-appointed emergency manager, brought in to resolve the city's budget deficit. An emergency manager, with the approval of then-state Treasurer Andy Dillon, OK'd Flint's decision to join the Karegnondi Water Authority, the new regional system. And an emergency manager approved Flint's decision to use river water.

Finding out what happened in Flint will be complicated. Gov. Rick Snyder has appointed a task force to investigate. U.S. Rep. Dan Kildee and state Senate Minority Leader Jim Ananich, both Flint Democrats, have asked the EPA to investigate. Ananich is calling for a Senate committee to hold public hearings.

There's one more thing the city, or MDEQ, might have learned from that 2011 report about Flint River water: Phosphates are cheap. To prevent lead from contaminating Flint's water, to protect children from the lifelong damage caused by lead poisoning, wouldn't have cost much.
Just $60 a day.

Voting is beautiful, be beautiful ~ vote.©

Tuesday, December 17, 2019

Gabe Leland Trial Set For March 23, 2019 - Deadline Detroit Narrowly Reports

Odd.

The article failed to identify Elissa Grubbs and what her relationships are.

There were no mentions of the 2016 or 2018 jacked-legged precinct polling station debacles, or the absentee ballot lot addresses of the Detroit Land Bank Authority, or even Special Election.

What about SIGTARP?

You know I have to give a shout out to SIGTARP, for they ultimately protect our most precious treasures.

This was very narrow reporting because everything I have just questioned is in the public domain.

https://beverlytran.blogspot.com/search?q=gabe+leland

I am very disappointed with this piece and have no choice but to grant Deadline Detroit an C+.

2019 Recap: Detroit Councilman Gabe Leland Could Be Headed To Prison — How Did This Happen?

We revisit 2019 news highlights each weekend this month, concluding with a Top 10 countdown starting Dec. 22. This originally was published Jan. 1.

► Update: Gabe Leland's trial on three federal bribery charges is scheduled to start March 23.

Detroit City Council member Gabe Leland was looking down, his brow furrowed in thought.

It was June 7 [2018] and he was in the hot seat, fielding questions in a downtown office building during a deposition stemming from a bribe he’d allegedly taken from a local businessman.

Featured_lelandfeature_33675
Gabe Leland
Bob Carmack — now a well-known city government agitator — had sued Leland, alleging he demanded $15,000 and auto body work in exchange for a political favor. The incident has since led to Leland’s indictment.

The stress was starting to show on the embattled councilman. Dark under-eye bags sagged below his cheekbones; he seemed to have lost hair.

Leland had blown by questions pertaining to Carmack; pleading the Fifth in what looked like a game of call-and-response. But now, as the questioning shifted to whether he’d also taken bribes from somebody else, Leland appeared stumped.

“Have you ever received a monetary or other bribe from Dennis Archer Jr. for your vote on any issue that came before Detroit City Council pertaining to any business that he was involved in?” Carmack’s lawyer, Andrew Paterson, asked.

Leland looked down. A full 10 seconds passed before he asked that the question be repeated.

“Have you ever received a monetary or other bribe from Dennis Archer Jr. for your vote on any issue that came before the Detroit City Council pertaining to any business that he was involved within the city?” asked Paterson.

Leland looked down again. Six more seconds went by.

“Can you ask the question — a-ask the question again, please?” he stammered.

Paterson tried a third time. Leland waited some more before pleading the Fifth.

As he faces a crisis that could end his political career and land him in prison for more than 10 years, Leland appears in over his head. The 36-year-old is not known for being cunning or even particularly sharp; he was first elected by trading on his politician father’s name and has maintained only a precarious grip on power in the years since.

Though it’s unclear what, exactly, may have driven him to accept a cash bribe in the form a campaign contribution, as prosecutors and a lawsuit allege, a look back at Leland’s political career reveals a pattern of morally questionable and even arrogant behavior that may have served as the foundation for future misdeeds.

The political playbook he used belonged to his father, Burton Leland, but, as many people close to the councilman tell it, he lacked his father’s skill in execution.

“The name of the game he was a part of was poli-tricks,” said Wayne County Commissioner Reggie Davis, a friend of the father and son. “It’s a type of game (where) if you’re not really ready to play it, then you’ll mess up. But it was his father’s game. Gabe never really wanted to be involved.”

Leland did not respond to multiple interview requests for this report.

His father’s son

Gabe Leland was born in Detroit in 1982, just as Burton Leland was embarking on a 37-year political career in which he’d never once face defeat.

Burton was elected more than a dozen times to represent a portion of the west side of Detroit, first in the state Legislature, then in the Wayne County Commission. But voters did not bet on him to be a political power broker; in his more than two decades in Lansing, the elder Leland was known for passing only one law. An ex-social worker, he instead maintained support by tending to the day-to-day needs of the people in his district. If a stolen car, for example, wound up parked on a constituent’s property, he’d contact the local police precinct to have it removed, free of charge.

“He was the epitome of ‘do the job,’” said Tony Bradford, who was Burton’s close friend and former campaign manager. “He’d never leave a resident’s house without helping them, he wouldn’t even want to give them another number to call. And chances are, if you take care of something for someone, they’re gonna vote for you the rest of your life.”

Those Burton helped were so loyal to him that, once, when he was locked in a tight reelection battle, Bradford recalls hearing an old woman say she’d “shoot the shit out of” anyone who tried to steal her Leland yard sign.

In 2004, Burton leveraged his success to get a then-23-year-old Gabe elected to a Michigan House seat in a district to which he had little connection.

Gabe, as Davis tells it, was "looking for some stuff to do" and was encouraged by his father to get involved in government.

“He said, ‘Hey, I can help you win,’” said Davis.

What happened next roils critics of the Lelands to this day. Gabe, who spent most of his childhood in East Lansing, near his father’s work, and attended college at Ferris State University in Big Rapids, entered a primary against six African-American candidates to represent Detroit’s 10th state House District.

His candidate profile listed limited credentials: Leland had knocked doors for his dad’s campaigns and helped with voter registration drives. But the profile prominently featured a half-truth, opening with, “Gabe was born and raised on Detroit's west side.”

Not mentioned was a detail that would have hampered the chances of a young candidate with a different last name: Just before he turned 20, Leland was charged with back-to-back marijuana crimes, one for dealing. Both cases were dismissed, reportedly, after intervention by his father.


Gabe Leland, left, and his father, Burton Leland, in an undated photo taken in the state Capitol. (Photo: Gabe Leland's 2013 campaign site)
In spite of all this, Gabe registered at an address in the district — his dad’s buddy’s house — and went on to win a decisive primary by just under 230 votes. He’d arrive at the Capitol grossly underqualified: LaMar Lemmons, a former state rep who served alongside Leland in the Detroit delegation, recalled that, when asked about the schools in his district, Leland couldn’t name a single one.

Critics paying attention were stunned by the Lelands’ audacity.

“They felt they owned that part of Detroit,” said a former lawmaker who served in the Legislature with them and asked to remain anonymous. “It stems from a sense of arrogance, which is at the DNA of Gabe’s political makeup. But I just can't blame him all the way. I mean, he learned everything he knows about this business and how he does it from his father.”

Still his father’s son

Burton, though by and large beloved by voters, was, according to Bradford, “paranoid” about maintaining power and willing to play dirty when he thought he needed to. That meant going negative, running black candidates in his own races to “dilute the black vote,” according to Lemmons, and sometimes paying someone who shared a last name with his strongest opponent to register to appear on the ballot and siphon some votes.

Similar tactics emerged in Gabe’s time in the state House, and now city council.

Leland created a rift with his Detroit colleagues in 2006, when he voted for Andy Dillon to be House speaker, despite promising otherwise. Dillon won, and Leland, then just 25, was rewarded with a chairmanship role on the House Committee on Urban Policy. (He pulled a similar move upon joining City Council, serving as the swing vote to name Brenda Jones council president, and in exchange, getting appointed to run the prestigious Planning & Economic Development Committee.)

“He cut a deal behind our backs,” said the ex-lawmaker who asked to remain anonymous. “His loyalty was never so much to the delegation, but to the white male majority within our party, who, sometimes, their interests were different than the Detroiters’.”

Lemmons agreed.

“Gabe’s agenda was the enrichment of Gabe,” he said.

When he ran for council in 2013, after term limits forced him out of the state House, Leland resorted to some slimy political maneuvers to eke out a win against a formidable adversary, Detroit police officer John Bennett.

First, Leland is believed to have tried to eliminate Bennett in the primary by running a Robb Bennett — an apparent dummy candidate who, according to John Bennett, was a friend of Burton’s. Robb Bennett pulled in 400 votes, almost enough to keep John Bennett from advancing to the general. Leland then sent out a negative mailer to voters in the district. It pictured an ice cream cone and described “the John Bennett Triple Dip.” Bennett, the mailer said, had taken “three scoops” from taxpayers: He had sued the city and won, was collecting a pension and now wanted another check in the form of a council salary. In reality, Bennett had sued to get his job back after he was wrongfully terminated for creating a website that criticized a police chief, who eventually resigned in disgrace. Bennett also wasn’t collecting a pension; he was still a police officer.

Bennett chalks up his loss, in part, to Leland’s shady political tactics and last-minute support from now-Mayor Mike Duggan, whom Leland worked for while the mayor was president of the Detroit Medical Center. (A spokesperson for Duggan disputed this, saying the mayor did not support any other candidates in 2013.) But he believes an additional, racial element was at play.

“We were coming off a time where a lot of black elected officials participated in malfeasance,” said Bennett, who was a vocal critic of the Kwame administration. “At the same time I was running for council, Benny Napoleon was running for mayor against Mike Duggan and I can tell you the general feeling amongst a lot of people in the city is that they were tired and weary of that leadership and that leadership happened to be black.”

The irony that Detroiters saw a person they could trust in Leland is not lost on Bennett.

“Here we sit today with a council member who is now in trouble with the law, and I can tell you as someone who lives in the community that there's a lot of concern from people about their representation,” he said.

“Goob”

Though Leland has taken great pains to fill his father’s shoes — pushing some progressive policies and going back to school to earn a degree in community service at Central Michigan University — residents in his district are quick to point out he’s fallen short. They complain he hasn’t addressed their quality-of-life issues to the extent his father did, and some believe he’s sold them out to downtown developers.

But residents also speak to Gabe’s likability, or lack thereof. He’s less personable than his father was, less charismatic, and nowhere near as sharp.

“I thought his dad was a much better politician,” said 7th District Police Commissioner William Davis. “I don’t know how to put it politely, but I think he was better at thinking on his feet.”

Indeed, Leland does not have the polish of even an average politician. He relies on long, rambling sentences laced with “ums” to convey simple ideas and, when speaking publicly, has a habit of rolling his eyes upward in the middle of a statement as if grasping for what to say next. He appears easily distracted, and it’s not difficult, when scrolling through council videos, to find him disengaged, fidgeting with a pen or transfixed by a speck of dirt on his tie. His demeanor has earned him the nickname of “Goob” with some reporters.

Others point out Leland’s gaffes. In 2017, when an activist from his district blasted councilmembers for voting to allow city employees to buy Land Bank-owned homes at a discount — homes that in many cases came into the government’s possession only after their owners were displaced by tax foreclosure — Leland defended the program for growing the city’s tax base, but also for allowing city employees to “get a piece of the pie.” Bennett described Leland as socially inept, recalling an incident when, during an election cycle, Leland knocked on his door and pressed him on why his wife wasn’t listed as living at the home. Bennett had recently been divorced.

“Just jaw-dropping goofiness,” said Bennett.

Carmack, the star witness in the bribery case against Leland, alleged that Leland tried to squeeze him for money while Carmack was tending to his dying father in the hospital. He says Leland even asked to meet him there. 

“This guy’s insane,” said Carmack. “There’s nothing normal about this guy.”

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Blight is common in District 7. (Photo: Violet Ikonomova)
Leland also appears to embrace the job’s more morally objectionable perks. He’s developed a reputation for soliciting expensive meals from lobbyists and other donors. While serving in Lansing, campaign finance records show he was cashing in on free meals from lobbyists at a much higher rate than his colleagues — more than $1,400 in free food per year, on average. Leland is also alleged in a federal lawsuit to have extorted thousands of dollars in free food, booze, and entry to parties in exchange for promising a downtown Detroit bar owner political influence. (Isaac Robinson, a former Leland council staffer who was recently elected to the Michigan House, rejected the characterization of Leland as solicitous, saying lobbyists were more likely chasing him.)

Whose representative?

As bad as the alleged misbehavior has been, a more basic complaint about Leland from block-club presidents and community leaders in his district pertains to how he does the job he was elected to do. It’s a common one in the city’s neighborhoods amid Detroit’s revival: Leland has forsaken them in favor of building up the city’s downtown.

District 7 is home to some of the highest levels of poverty, crime and blight in the city. Many blocks are riddled with vacant lots and abandoned houses and, on some, there’s not a single occupied home left standing. Median income in the district was $15,000 as of the 2010 Census — not much higher than the federal poverty line — and the average home in its three main zip codes sold for a little over $20,000 last year. On Joy Road, there’s a combination McDonald’s restaurant and gas station that’s seen so many carjackings and killings residents have dubbed it “Murda Mac.”

Residents expressed disappointment with a number of actions taken by Leland during his first term, including a vote to give the Pistons more than $34 million in incentives to move downtown and another to authorize millions in spending for continued water shutoffs. Almost every community leader Deadline Detroit spoke with brought up his role in torpedoing a community benefits ordinance that would have required developers receiving massive tax breaks from the city to provide things like jobs and affordable housing to residents. Leland held up the proposal as chair of the Planning & Economic Development Committee, forcing it to a ballot vote in 2016, where it was defeated after development interests backed a watered-down alternative. Leland counts among his largest campaign contributors the unions providing labor for the downtown construction boom.

“He doesn’t stand for anything,” said Lemmons. “You would expect a white city council member to be like a Maryann Mahaffey — an advocate for the poor and for the disenfranchised. Gabe is none of that. Gabe is for Gabe.”

A caricature, or a man of character?

But the picture of Leland as a morally slippery politician who spends his days OK-ing big downtown deals and nights sipping free cocktails is incomplete.

Featured_leland_foreclosures_33683
Leland has fought to help Detroiters avoid tax foreclosure. (Photo: Twitter)
Unlike his father, Leland has opted to live in humble digs in the district he represents. He does not live in one of District 7’s nicer neighborhoods — he stays near Plymouth and the Southfield Freeway, in a modest bungalow across from a boarded-up, vacant house. It’s the home that belongs to his dad’s friend, the first address he listed in the city when running for office in 2004. Servers at the original Starter’s Bar & Grill, up the street, say he comes in often.

Over the course of his career, Leland has fought for a number of policies that would help the residents of his district. In 2009, during his final term in Lansing, he introduced a pioneering bill to ease requirements for poor people to obtain property tax exemptions to stave off foreclosure. The bill would have allowed the exemptions to be retroactive and required reimbursements for qualifying individuals. Housing advocates have blamed the difficult-to-access exemption for the wrongful foreclosure of thousands of Detroiters and the city recently settled a lawsuit brought by the American Civil Liberties Union, promising improvements.

Leland also called for a moratorium on tax foreclosures when a record number of occupied homes were set to go to auction in 2015. More recently, he crossed the Duggan administration in his vote to eliminate a notary requirement for the poverty exemptions.

Separately, he serves as chair of the city’s disability task force, and added language to an inclusionary housing ordinance requiring developers to make new residential units ADA-compliant.

“In his short time as a council person he’s taken up some issues focused on social justice,” said Robinson. “I think Gabe really has a goal of being a progressive voice.“

Council member Mary Sheffield also offered some positive words about her embattled colleague. Leland, she said, took her under his wing early on, as he had come to the role with previous legislative experience and she was the youngest person on council.

“I can't talk to his personal life or what's going on with him, but my experience with him has been very pleasant,” she said. “He kind of just embraced me ... he definitely treated me like a big brother.”

She also pushed back on the notion that Leland isn’t bright.

“I think Gabe actually is very smart and in my conversations that I have with him, he may not come across as charismatic as most politicians, but ... he knows the issues,” she said. “He's informed, for sure.”

The legal undertow

But the negative perceptions persist — and are further fueled by Leland’s legal troubles.

“He’s misrepresented us in this district,” said Raymon Jackson, a community activist known as the Advocate. “But not only the lack of development and his track record of voting against everything that affects the citizens — on top of that he’s got a federal probe.”

Jackson went on to tick off Leland’s negatives: He voted to approve more than $2 million in city contracts with companies affiliated with his then-girlfriend, Jennifer Fiore, the daughter of Gasper Fiore, who was convicted of bribery a year ago. Leland did not disclose their relationship prior to his votes. When he learned the Fiore family’s towing operation was under federal investigation, he met with Police Chief James Craig to pump him for information, making Craig so uncomfortable he told The Detroit News he “contacted the FBI as soon as [Leland] left the room.”

Then, there are the two federal lawsuits alleging extortion. The one from Carmack alleges Leland sought $15,000 days ahead of the August 2017 primary — at a point when Leland’s campaign coffers were flush and he was facing a weak opponent. This is in addition to the extortion suit brought by the former owner of Centre Park Bar.

And of course, there’s the indictment that backs up much of what Carmack alleges in his suit. Prosecutors have said they have recordings of meetings between Carmack and Leland, one in which he acknowledges receiving an envelope of $7,500 cash from a Leland associate. Leland allegedly said he’d help Carmack with a property dispute in exchange for the money, and hinted he would take more, saying, "I should ask for 30 but I'm nice to you."

Leland’s lawyer, Steve Fishman, declined to comment for this story.

Some wonder what it will take to remove Leland from office.

“Like, what he got to do to? Murder somebody?" asked Jackson. “Ain’t no community he would ever be able to [stay in power in]. Ain't no suburb he could go to and have all this on him.”

And yet, Leland has refused to resign, positioning his sticking around as a favor to the people in his district.

At an October council hearing, he told a constituent who asked him to step down that “residents in District 7 . . . deserve representation.”

In the event of a resignation, the remaining council members would appoint a replacement with a two-thirds vote.

Featured_joanna_and_advocate_33648
Raymon Jackson and Joanna Underwood will soon begin gathering signatures to recall Leland. (Photo: Violet Ikonomova)
Absent a resignation, Leland could be removed from the body if he pleads or is found guilty, or if District 7 residents recall him. Jackson and Detroit Charter Commission member Joanna Underwood plan to soon begin gathering signatures for a recall.

Leland’s colleagues on council have made no effort to reprimand him. They have not called for his investigation and he has not been removed from the committees on which he sits. When the indictment came down, the body issued a statement simply saying that it would “not affect the work of the Detroit City Council. We will continue to do our jobs, as elected by the citizens of this city."

District 2 representative Roy McAllister was the only council member willing to speak on council’s inaction.

“It’s the people that voted him in, so he represents his district. We did not vote him in,” said McAllister. “It’s an issue but, it’s still under [federal] investigation.”

A final push from the old man

Leland’s father died of cancer in February, just as his son's troubles began to unfold. Two months earlier, it emerged that Leland had been named a “target subject” in the same public corruption probe that has ensnared Fiore and other Detroit officials. Shortly after Burton’s death, Carmack filed his extortion suit against Leland, and disclosed he’d worn a wire for the FBI.

From his “deathbed,” Reggie Davis said, Burton Leland tried to ensure his son would be insulated from harm once he was gone.

“Burton tried to help,” said Davis. “He was advising some of the people close to Gabe to help him in certain ways.”

Davis didn’t provide specifics, but Leland’s lawyer, Fishman, is an old high school friend of Burton’s. Bradford, who called Burton “a brother,” said he was asked to come on last December as Gabe’s constituent services director.

People who know Gabe well have different theories for how he wound up in the mess he’s in. Some chalk it up to hubris, others say he simply wasn’t sharp enough to play politics in the way his father did, and slipped down the slope from immoral to illegal.

But there was one thing on which people with differing theories agreed: Gabe wouldn’t be in trouble were his father still around.

“The greatest vulnerability to him now is that his father has transitioned,” said Lemmons. “So now Gabe is really out there by himself.”

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Tuesday, December 18, 2018

It Seems Michigan Richard Baird Really Likes Public Private Trust Funds

The more the Michigan Governor's Cabinet operations are uncloaked, the more I am inclined to reaffirm my position that Snyder was falsely advised, if he was even advised on what was going on.




Here is a list of Rich Baird's privatization activities in Michigan:

The search and appointment of Kevyn Orr, Emergency Manager for the Detroit Bankruptcy.

Pay attention to all those trust funds and real estate.

Flint Homecoming

Senior Advisor and Transformation Manager
Office of Michigan Governor Rick Snyder

Richard L. Baird was appointed Senior Advisor and Transformation Leader to Michigan Governor Rick Snyder in October of 2013. Prior to that, he was the CEO of MI Partners, LLC, a Michigan-based consulting company contracted by the Snyder administration since January, 2011.

Baird works with the Governor and his leadership team to reinvent and transform Michigan. Baird has played key roles to address financial solvency, organizational redesign and performance, talent assessment, financially distressed city turnaround strategies, public safety and infrastructure, economic/workforce development and education reform.

Baird served as co-leader (with U.S. District Court Judge Sean Cox) of the mediation team which led to the creation of the Great Lakes Water Authority and also assisted Judge Gerald Rosen in the successful resolution of creditor disputes under the Detroit bankruptcy. He created the Office of Good Government for the State of Michigan, designed the Governor’s Council on Law Enforcement and Reinvention (CLEAR), and has been actively involved in pension redesign, enhancing opportunities for the disabled, ex-offender rehabilitation, and tax payer reform.

More recently (since January, 2016), Baird has served as the Team Leader for “Mission Flint” which coordinates the State’s partnership with the City of Flint and the related nearly $300 million appropriation to address problems arising from the water crisis and assist with economic/workforce development, medical and education initiatives.

In 2010, Baird retired from PricewaterhouseCoopers, LLP as global and U.S. leader of people and change management. From 2003–2008, he was global managing partner – people, responsible for human resources and learning & education for PwC’s 150,000 partners and staff in 150 countries, while serving on the 14-partner global leadership team. From 19997 to 2000, Baird was President of Compass.com, a couple sold to TMP Worldwide (Monster.com) in 2000.

Baird has been referenced in various professional publications for his work in talent management, including The Wall Street Journal, Global HR News, Newsweek, Economist, and Chicago Tribune.

Baird serves as Treasurer of the Michigan Education Excellence Foundation, and is a member of the board for the Grow Michigan Investment Fund. He joined the board for the American Center for Mobility in May, 2017. He is a life member of the board of trustees for United Methodist Homes and Services and a past member of the AIESEC U.S. board of directors and global advisory steering committee. An avid conservationist, he also served on the board of the Great Lakes Protection Fund.

United Methodist Homes | Independent & Assisted Living Senior Care
https://www.unitedmethodisthomes.org/services/

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https://aiesec.org/about-us
Mark Image
Word MarkDETROIT SCHOLARSHIP FUND
Goods and ServicesIC 036. US 100 101 102. G & S: Charitable fundraising; Charitable fundraising services, namely, raising funds for college education costs; Providing educational scholarships; Providing college scholarships; Financial administration of scholarship programs. FIRST USE: 20130430. FIRST USE IN COMMERCE: 20130430
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Serial Number86597230
Filing DateApril 14, 2015
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Date Amended to Current RegisterOctober 30, 2015
Registration Number4915636
Registration DateMarch 8, 2016
Owner(REGISTRANT) Michigan Education Excellence Foundation non-profit corporation MICHIGAN P.O. Box 10030 Lansing MICHIGAN 48901
Attorney of RecordEric T. Fingerhut
DisclaimerNO CLAIM IS MADE TO THE EXCLUSIVE RIGHT TO USE "SCHOLARSHIP FUND" APART FROM THE MARK AS SHOWN
Type of MarkSERVICE MARK
RegisterSUPPLEMENTAL
Live/Dead IndicatorLIVE

Mark Image
Word MarkMICHIGAN EDUCATION EXCELLENCE FOUNDATION
Goods and ServicesIC 036. US 100 101 102. G & S: Accepting and administering monetary charitable contributions; charitable fundraising; charitable fundraising services, namely, raising funds for college education costs; financial administration of scholarship programs; charitable fundraising for education projects in the State of Michigan. FIRST USE: 20120827. FIRST USE IN COMMERCE: 20120827
Standard Characters Claimed
Mark Drawing Code(4) STANDARD CHARACTER MARK
Serial Number85429727
Filing DateSeptember 22, 2011
Current Basis1A
Original Filing Basis1B
Date Amended to Current RegisterFebruary 21, 2013
Registration Number4319072
Registration DateApril 9, 2013
Owner(REGISTRANT) Michigan Education Excellence Foundation non-profit corporation MICHIGAN P.O. Box 10030 Lansing MICHIGAN 48901
Attorney of RecordMichelle R. Osinski
DisclaimerNO CLAIM IS MADE TO THE EXCLUSIVE RIGHT TO USE "FOUNDATION" APART FROM THE MARK AS SHOWN
Type of MarkSERVICE MARK
RegisterSUPPLEMENTAL
Live/Dead IndicatorLIVE

https://pdf.guidestar.org/PDF_Images/2016/453/076/2016-453076410-0eb4e396-9.pdf


Baird received his bachelor’s degree from Albion College and was a trustee for 12 years, including five as chair. He received an honorary Ph.D. from Albion College and from Eastern Michigan University.

Governor's right-hand man served as emissary, deal-maker, talent scout

Rich Baird, senior adviser to Gov. Rick Snyder, has worked throughout Snyder’s tenure as a de facto deputy governor of the state, whether it was dealing with the Flint water crisis or weekly meetings with Detroit Mayor Mike Duggan.

Rich Baird's skin is a lot thicker these days after eight years as a student of government.

The former PricewaterhouseCoopers LLP executive's faithful service as the right-hand man for outgoing Gov. Rick Snyder has been a ride through the making of laws, Detroit's landmark bankruptcy, some well-intended ideas gone awry and the tsunami of turmoil that engulfed his hometown of Flint — and nearly took the Snyder administration with it.

Whenever there was a controversy or a fire to put out during Snyder's unconventional tenure as Michigan's chief executive, Baird was typically on the scene, serving as an emissary, a deal-maker, the talent scout and, in the eyes of some people, a de facto deputy governor of Michigan.

For the past six years, Rich Baird's trail has run from the governor's office and courtrooms to Detroit Mayor Mike Duggan's office and Flint City Hall. And for most of that time, he has spurned attention from journalists who have been curious about his wide-ranging assignments from the governor.
Rich Baird has seemingly been everywhere:

  • He recruited the top minds to Snyder's team, convincing Jones Day bankruptcy attorney Kevyn Orr to camp out in Detroit for a nearly two-year bankruptcy reorganization project that defied political gravity.
  • He set up Snyder's now-defunct Education Achievement Authority school reform entity — and later was involved in dismantling the EAA after it became entangled in mismanagement and corruption.
  • In 2016, Baird planted himself in Flint during the height of the city's lead-tainted water crisis, living in rooms he rented off Craigslist and serving as the governor's personal representative at a time when hatred for Snyder was at a fevered pitch.
  • He has served as Snyder's ambassador to the Manoogian Mansion, holding meetings every Thursday morning with Duggan for the past five years and forging an early peace treaty in 2013 between the emergency manager and a newly elected mayor who vowed to dispose of the EM.
  • During and after the bankruptcy, Baird mediated negotiations with stakeholders, including creation of the Great Lakes Water Authority, a regional entity that spun off suburban water and sewer operations from the Detroit Water & Sewerage Department.
  • In the four years since Detroit emerged from bankruptcy, Baird has continued to be the go-to troubleshooter for state-city issues, serving as a self-described "field commander" in Detroit's failed bid for Amazon's second headquarters.
  • Baird played a central role in striking key deals for construction of the Gordie Howe International Bridge, including securing funds for Detroit to relocate Delray residents who live near the planned bridge plaza.
"He's the person we turn to when we're stuck," Duggan said of Baird. "The fact that he's down (in Detroit) every day, he understands what we're trying to do and why, it has made him very effective as an honest broker with a lot of different major deals."

Baird's broad role in the Snyder administration "created a vacuum, a mystery around him" that was widely misunderstood, Lt. Gov. Brian Calley said.

"It's hard for this town to understand that there's this person that you've never heard of that has a lot of influence. What's going on there?" Calley said in an interview.

Before Snyder took the oath of office on Jan. 1, 2010, incoming Chief of Staff Dennis Muchmore gave Baird the ubiquitous title of "transformation manager."

"What's transformation manager mean?" Baird asked Muchmore.

"Absolutely nothing," Muchmore replied.

"Or it could mean absolutely everything," Baird said.

The latter turned out to be true.

"Rich Baird has been one of the most important, impactful and effective members of this administration," Calley said.

The recruiter
Baird, 62, retired from PricewaterhouseCoopers on June 30, 2010, after three decades at PwC and one of the accounting giant's predecessors, Coopers & Lybrand, where he hired Snyder in 1982 to work in the firm's Detroit office. Snyder has been Baird's colleague, a client when he ran Gateway Computers, confidante and friend ever since.

Baird volunteered for Snyder's gubernatorial campaign. In the transition, Snyder tapped Baird to lead the recruitment of state agency directors and top aides — a natural fit for the guy who was PwC's global managing partner for human resources.

Two positions proved to be the most difficult to fill: the Department of Corrections director and the state budget director. The corrections director job would be filled a month into Snyder's tenure with the appointment of then-Jackson County Sheriff Dan Heyns.

For the budget director job, Baird was not satisfied after interviewing nearly two dozen in-state candidates.

"I did not come away with the sense that any of them really understood what it was going to take to not only deal with the budget and fill what we knew was a deficit, but also knowing how the governor was going to approach policy and budgeting," Baird said.

On a Saturday afternoon in November of 2010, Baird called former Gov. John Engler for advice on out-of-state candidates for the job.

Engler, who was then CEO of the National Association of Manufacturers, came back to Baird with a list of five well-regarded state budget officers across the country. At the top of the list was Utah's budget director, John Nixon, then the president of the National Association of State Budget Officers.
"(Engler) said, 'You won't get this guy, but you should start with him and talk to him about the other candidates — because he knows all of them,'" Baird said.

Baird sent Nixon an email — and within an hour Utah's budget guru called the Michigan headhunter on a Saturday night.

Nixon, a devout Mormon with six children who were ages two to 14 at the time, wasn't interested in uprooting for the Midwest.

But cajoling is Baird's specialty.

"I said, 'It seems to me that you've retired in place. How exciting could it be? Why don't you at least come out and talk to us? We'll make you part of the biggest comeback in the history of the country,'" Baird said. "And he laughed."

Nixon relented, flying to Detroit to meet with Baird and the top members of Snyder's cabinet — Calley, Muchmore, Treasurer Andy Dillon and Strategy Director Bill Rustem. He also met with members of Snyder's transition team: Business Leaders for Michigan CEO Doug Rothwell and Meijer Inc. Vice Chairman Mark Murray, a former state budget director and treasurer under Engler.

When Nixon came back the following weekend with his wife to meet with Snyder, Baird called in a favor from Honigman corporate attorney G. Scott Romney, son of former Gov. George Romney and a fellow Mormon and Republican.

Baird asked Romney if he'd take the Nixons to his Mormon church. "The Romney name is like gold in Utah," Baird said.

On New Year's Eve 2010, Nixon flew to Michigan and set to work on a grueling mission: Produce a two-year budget in six weeks that eliminates a $1.5 billion budget deficit and lets the state slash business taxes.

"Rich is a compelling guy. I realized they had built a first-class team. And I thought, this is something I want to be part of," said Nixon, who returned to Utah in 2014 to become chief administrative officer of the University of Utah.

'Great idea' gone bad
Baird never intended to be part of Snyder's administration.

Initially, Snyder asked Baird to work as a consultant for six months to help put together a new government.
Baird says he "resisted" becoming an employee of the State of Michigan.
"I'm not a bureaucrat," Baird recalled telling the governor. "I don't want to stay on."

"He said, 'Well, I'll pay you out of the NERD Fund,' which we thought was a great idea at the time," Baird added.

And that's how Baird got on the radar of reporters like me.

For most of Snyder's first three years, Baird was paid $100,000 annually from the New Energy to Reinvent and Diversify (NERD) Fund, a not-for-profit organization that could accept limitless donations without having to disclose the donors.

The arrangement raised the specter of whether special interest groups with a policy or legislative agenda were funding the salary of an influential member of the governor's inner circle.
"It wasn't special interests that gave to the NERD Fund — it was Democrats, a whole bunch of them," Baird said.

But Democrats had a field day, raising transparency questions about the secrecy of the fund and the source of Baird's pay while being listed as a state employee with an office across the hall from the governor's suite.

To this day, the identity of the donors who contributed $2.2 million to the NERD Fund remains a secret. In October 2013, Snyder shuttered the NERD Fund, put Baird on the state payroll — at $140,000 a year — and started a new nonprofit organization that has voluntarily disclosed its donors and expenses.

But Baird insists his NERD Fund employment arrangement was devoid of conflicts.

"If I'm a tool of the special interest, then somebody should be shot because I made exactly one-twentieth of what I made in my old life at PricewaterhouseCoopers," Baird said.

'Hated being called a tax cheat'
Even after Snyder tried to tamp down the NERD Fund controversy, Baird remained a frequent target of Democrats and the governor's political enemies.

In August of 2014, the critics pounced after MIRS news service discovered Baird was claiming tax principal homestead exemptions on a $500,000 home in Clinton County's Bath Township and his longtime residence in suburban Chicago. Tax laws limit the property tax break to just one home.

Baird also was still driving around a vehicle with an Illinois license plate, even after he had changed his voter registration to Michigan and got elected a precinct delegate to help re-nominate Calley for lieutenant governor at a GOP state convention — and vote for Snyder that fall.

That move, Baird said, triggered a call from his accountant, who flagged the fact that Michigan — under Snyder — was now taxing pension income for individuals born after 1946.

"She said, 'Are you crazy? You've got to move your pension away from Illinois and to Michigan — and you're going to get taxed on the pension,'" Baird recalled. "I said, 'I know. I was at the scene of that crime.'"

'EAA was not a failure'
Baird's activities stretched well beyond recruitment and the confines of governing inside the Lansing bubble.

Snyder made turning around Detroit and its long-failing schools a top priority. For the city's schools, a succession of state emergency managers was not working, and Snyder wanted to try something new.
The governor tasked Baird with helping to create a new entity that would take over 15 persistently failing schools in Detroit in an effort funded in large part by billionaire Detroit native Eli Broad to demonstrate a different style of education with longer school days, year-round instruction and no grade levels.

The result was the Education Achievement Authority, which was organized as an intergovernmental agreement between Eastern Michigan University and Detroit Public Schools, which was run by an emergency manager at the time.

That move, Baird said, triggered a call from his accountant, who flagged the fact that Michigan — under Snyder — was now taxing pension income for individuals born after 1946.

"She said, 'Are you crazy? You've got to move your pension away from Illinois and to Michigan — and you're going to get taxed on the pension,'" Baird recalled. "I said, 'I know. I was at the scene of that crime.'"

'EAA was not a failure'
Baird's activities stretched well beyond recruitment and the confines of governing inside the Lansing bubble.

Snyder made turning around Detroit and its long-failing schools a top priority. For the city's schools, a succession of state emergency managers was not working, and Snyder wanted to try something new.

The governor tasked Baird with helping to create a new entity that would take over 15 persistently failing schools in Detroit in an effort funded in large part by billionaire Detroit native Eli Broad to demonstrate a different style of education with longer school days, year-round instruction and no grade levels.

The result was the Education Achievement Authority, which was organized as an intergovernmental agreement between Eastern Michigan University and Detroit Public Schools, which was run by an emergency manager at the time.

From the outset, the EAA was troubled.

The school reform entity struggled to meet payroll and manage expenses in the absence of authority to borrow money like normal school districts do.

John Covington, the former Kansas City schools superintendent who was hired to be the EAA's chancellor, was "a good blueprinting guy ... but not an operations guy," Baird said.

Baird said Covington's insistence that the EAA be a closed shop for the American Federation of Teachers triggered an unnecessary "war" with the union and legislative Democrats, who dredged up thousands of pages of emails that revealed the early dysfunction and stumbles of Snyder's school reform project.

"I ultimately rolled over on that," Baird said. "I'm really sorry I did, because over the years, I've worked with the (AFT), and we've been able to find common ground."

In 2013, as Snyder was seeking legislation to expand the EAA to 50 failing schools across the state, Baird said he experienced an "epiphany" that the EAA was faltering when a highly skilled information technology director quit after one week on the job.

"I called her and I said, 'What's going on?' And she said, 'There's so many things that are wrong, I can't fix them and I'm not going to fool anybody into thinking I can,'" Baird said.

Baird asked David Behen, the state's chief information officer at the time, to audit the books of the EAA. "He did a thorough investigation — as good as anything a PwC or a Deloitte would have done," Baird said.

The audit revealed duplicate IT contracts and a "consistent lack of controls" that allowed vendors to get paid without contracts. That caused Baird to turn to a former PwC partner, Tom Golden, who co-authored a guide to forensic accounting.

Golden's investigation led to an FBI and state police probe that rooted out a corruption scheme involving an EAA principal who was driving a Maserati and pocketing tens of thousands of dollars in bribes from a vendor. A dozen principals in DPS were eventually charged for taking bribes from vendors in a pay-to-play scheme that had been going on in Detroit schools for years.

The corruption scandal, Covington's mismanagement and controversial frequent travel to conferences coupled with declining enrollment and rampant staff turnover eventually caused the Snyder administration to fold the EAA schools back into DPS in 2016.

"It clearly didn't work," said David Hecker, president of the AFT Michigan. "But I'll give Gov. Snyder credit for realizing it didn't work."

Baird insists the "EAA was not a failure."

"If we had done some things differently, I'm convinced the EAA would have been the trigger to create some real revolutionary change in school districts across the state," Baird said. "It was always designed to be Stage One of a statewide focus."

Defending the EM law
For eight years, Snyder wore his "relentless positive action" mantra on his sleeve, while Baird worked to enforce it.

On the Thursday after Detroit's November 2013 mayoral election, Baird brokered the first meeting between Mayor-elect Mike Duggan and Kevyn Orr, who had been running the city for nearly eight months as emergency manager.

Baird hand-wrote a pledge for the two men: Both agreed to keep their disagreements private "and the only time that we're going to publicly talk about the other person is when we have something good to say."

"I made them sign it," said Baird, who declined to show me a copy of this peace accord.

At that meeting, Duggan and Orr agreed to share power for the next year — Orr would manage the bankruptcy and supervise police chief James Craig, while Duggan would run city departments.
Baird cautioned Orr on how the arrangement could play out.

"You've heard about if you give a mouse a cookie, he's going to want a glass of milk," Baird recalled telling Orr. "Mike Duggan will want the barn, the dairy farm, the production facility and the supply chain — it won't stop with the milk."

Since Orr left town at the end of the bankruptcy four years ago this month, Baird has remained Snyder's point man in Detroit, holding court with the mayor every Thursday morning. Duggan even gave Baird his own mayor's office ID badge that lets him bypass security.

"I think Rich Baird has been as big a part of the progress Detroit has made in the last eight years as any other person, including Kevyn Orr, Mike Duggan and Rick Snyder," Calley said. "Rich Baird has been that impactful."

Baird credits the bankruptcy's success to both Duggan's management and turnaround skills and the talents Orr and his Jones Day legal team brought to the restructuring of a city that was drowning in debt and political dysfunction.

The same cannot be said for Flint, where Baird ran a "Mission Flint" program in 2016 trying to chart new initiatives in education, economic development and social services for his hometown in the wake of the water crisis.

Baird, the longtime human resources professional, is blunt in his assessment of how Flint's water became tainted with lead under the watch of Snyder-appointed emergency managers.

"The reason it didn't work in Flint is because we did not always have the right emergency manager that looked at this as a partnership as opposed to a dictatorship," Baird said.

Rumor has it
With just two weeks remaining in Snyder's term, the only transforming Baird is working on is stepping back into semi-retirement.

Snyder appointed Baird to an eight-year term on the Eastern Michigan University Board of Regents, and he's planning to do some long-overdue traveling with his wife next year.

And even though he's already got walk-in privileges at the mayor's office, Baird said he isn't going to join the Duggan administration.

"I think Mike was the one spreading that rumor," Baird said with a laugh.

In an interview, Duggan didn't deny he has tried to make Baird more than a weekly visitor to Coleman A. Young Municipal Center.

"Yeah, I'm recruiting people all of the time," Duggan said. "But you know, I think he's earned retirement."

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