Feds suspect corruption at cash-strapped Detroit Public Schools DETROIT, MI -- As Lansing considers giving debt-burdened Detroit Public Schools more than $700 million, U.S. Attorney Barbara McQuade will discuss possible fraud within the District. McQuade, "along with the Federal Bureau of Investigation and the Internal Revenue Service, will discuss the filing of charges involving several current and former Detroit Public School principals, an administrator and vendor," the U.S. The announcement is expected at 1 p.m. Thirteen principals -- past and present -- were indicted and accused of receiving kickbacks in exchange for awarding purchase contracts to a company named Allstate Sales, based on federal court records. "The alleged actions of former and current principals in Detroit Public Schools are unacceptable," Sen. "I'll be working with my colleagues in the House to strengthen the DPS legislation passed by the Senate in light of this development. (Update: Governor signs $48.7 million package.)
Kwame Kilpatrick Trial, Day 2: Feds Show Former Detroit Mayor's Cash Transactions Of $531,000 DETROIT — Large amounts of cash that Kwame Kilpatrick deposited into bank accounts may have been gifts or money that he had saved for years and stored at home, the former Detroit mayor's lawyer suggested Monday. Prosecutors went right to the money in the first day of evidence in Kilpatrick's corruption trial, showing jurors a $4,000 cash deposit slip he used in 2005. Kilpatrick is charged with committing fraud, bribery, tax crimes and a racketeering conspiracy before resigning from office in 2008. Internal Revenue Service agent Ron Sauer said the government traced $531,000 in cash transactions from 2001, when Kilpatrick was elected mayor, through 2008. On cross-examination, defense attorney James Thomas suggested the cash could have been gifts or simply transferred to banks after Kilpatrick had saved it under his bed or in shoes. "Depending on how big the shoe is," Sauer replied when asked if that was possible. A former Kilpatrick bodyguard, police Sgt.
Tax burden, low property values lead to exodus of Detroit residents Detroit — For a generation, Detroit has levied as many property taxes as it legally could on its citizens. Now, after decades of plummeting population and property values, some wonder if that was such a good idea. Few officials defend Detroit's tax rate, which is tops among big cities nationwide. Fewer still have any solutions. "Of course property taxes are too high, but what do you replace them with?" Detroit is past the tipping point where taxes become so high they backfire, become a disincentive to invest, produce fewer revenues and lead to weaker city services, said Alan Mallach, a senior fellow at the Brookings Institution who studies Detroit. Economists call the phenomenon the Laffer Curve. "Detroiters aren't sheep lining up to be sheared. "Detroit has such a crushing property tax burden, it's no coincidence the land value is so low." If property taxes are a social compact — pay the bills, get services in return — it's broken in Detroit, said state Sen. Former U.S.
A must read from Detroit. The state of the fire department's infrastructure. A trail that shows money allocated & spent, but facilities not fixed. - Statter911 Read & watch the March, 2009 story of firefighters taking storm door (mentioned in LeDuff’s article)Read more about reporter Charlie LeDuff By Charlie LeDuff, The Detroit News (Pictures by Max Ortiz): Why is Detroit broke? Why are its books an unmitigated disaster? Why do things never seem to change no matter who occupies City Hall? Three firefighters were caught last year scavenging a screen door from an abandoned house. The men were caught on video tape and disciplined. I took a trip to the Detroit Building Authority, which oversees city construction projects and dispenses city monies to pay for them. Then I went to the firehouses and listened to the complaints of the people who do the real work of putting out fires. A meeting with fire officials was arranged. “What specific questions do you have?” Among the paperwork: Firefighters at Ladder 19 on Detroit’s east side can’t park their fire trucks in the main house because the floor is structurally unsound and condemned.
13 Detroit principals charged with bribery In addition, a DPS vendor -- identified as Norman Shy, 74, owner of Allstate Sales -- was charged. He is accused of being at the center of the criminal activity. Authorities say the scheme basically boiled down to this: Shy paid bribes and kickbacks to principals so they would allow their schools to be charged for supplies that were never delivered. Chairs. But at the same time the school district cried poor, principals are accused of having lined their personal pockets. "To hear this is just another slap in the face," DPS parent John Wills told CNN affiliate WDIV. Shy allegedly paid the principals a total of $900,000. The bribery is said to have started in 2002 and continued until January 2015. "The real victims in a case like this, of course, are the students and the families who attend Detroit Public Schools -- the teachers, the educators who really want to make a difference in the lives of Detroit Public School children," said U.S. 'Cannot overstate the outrage' 'Easy to get caught'
Nearly 2 dozen Detroit police officers suspended for outstanding warrants Detroit—Nearly two dozen Detroit Police officers will be suspended after a routine check of their driving records revealed they have outstanding warrants for their arrests. “Mostly, these were for parking violations in suburban cities; one or two might be moving violations,” Detroit Police Sgt. Michael Woody said. “None of these were criminal offenses, but it doesn’t negate the fact that officers have warrants out for their arrests. A police source said 23 officers were suspended, but Woody said he isn’t sure of the exact number. “We can’t have people with suspended licenses driving city-owned vehicles, and we can’t have officers out there with outstanding arrest warrants.” The officers will be suspended with pay until they take care of their legal issues. “We have policies in place: Anytime an officer has a warrant against him on this kind of issue, they’re suspended with pay until they pay the fines or get their licenses back,” Woody said.
Kwame Kilpatrick Sentenced, Former Detroit Mayor Gets 28 Years In Prison On Corruption Charges Kwame Kilpatrick was sentenced to 28 years in prison Thursday, seven months after he was convicted of public corruption in federal court. It marks the end to another chapter in the saga of Kilpatrick, who was elected mayor of Detroit at the young age of 31. Once mentioned as a possible candidate for president later in life, Detroit's "hip-hop mayor," now 43, is generally credited as one of America's worst mayoral leaders of the past decade. The former Detroit mayor's sentencing recommendation called for at least 28 years to life for Kilpatrick, who prosecutors say robbed the City of Detroit of millions through criminal enterprises when it was at its most desperate. "Kwame Kilpatrick was entrusted by the citizens of Detroit to guide their city through one of its most challenging periods," the prosecution's memo read. Kilpatrick was found guilty on 24 counts related to bid-rigging, extortion and bribery in his latest trial, which ended in March.
Detroit police feel pain of city's financial collapse Feb 23, 2014 By Sharon Cohen Associated Press DETROIT — It has come to this: Even some criminals sympathize with Detroit's cops. Baron Coleman thought he'd heard it all in his 17 years patrolling the streets. "When they saw us take a pay cut they were in shock. Detroit police officers have long known adversity: They've worked in crumbling station houses with busted pipes, driven run-down cars, tangled with balky radios. As Detroit tries to rebound — a plan to emerge from bankruptcy was filed Friday — few groups, if any, have been feeling the pain of the city's financial collapse more than the police. Baron Coleman knows it's hard being a police officer anywhere. Nearly a generation ago, when Coleman traded a factory job for a badge and crisp blue uniform, he had certain expectations: a good salary, great benefits and a pension. The bankruptcy erased all that. "Right now, the dream of what I came on for has been destroyed," he says. He is the fifth man to hold the position in five years.
Education Funding: Where do Schools Get Their Money? How do They Spend it? | Random Samplings Written by: Lisa Blumerman Our children represent our future — and a good education is essential to theirs. Children use the skills and knowledge they learn in school to establish a firm foundation for their — and in turn all of ours — future. Statistics released today by the Census Bureau provide a detailed look at how public elementary-secondary school systems are funded and how they provide the education and services for our nation’s children. Total spending by public elementary-secondary school systems in fiscal year 2010 was $602.6 billion, a 0.4 percent decrease from 2009. Revenues for our nation’s public elementary-secondary school systems come primarily from local government sources of revenue (when combined) for a total of $261.4 billion in fiscal year 2010. Data released cover public elementary-secondary school systems at the national, state, and school district levels.
15 Detroit Fire companies closing, nearly 200 demotions Just when he thought it couldn't get any worse, "the city has essentially said I think everybody better make sure they have their own garden hose," said union president Dan McNamara. He is disgusted with the city's plan to reorganize the Detroit Fire Department, cutting it to the bare bones. Engine Company No. 5, located in the Cass Corridor, is one of the fire stations now shutting down. "The citizens of the city are going to suffer because they can say what they want, they cannot justify these closings." Here are the numbers. It's part of a shell game that the union claims will leave the oldest firefighters fighting the toughest flames trying to save your house and life. "Out of a thousand people, we have 18 people under the age of 30, so you're going to have old people like me riding the back ends, 50-year-olds on the back ends of fire trucks, and less fire trucks taking longer to get there, so guess who suffers," McNamara said. Normally three fire engines show up at your average fire.