Michigan cities going bankrupt? Not so fast

To the editor:

After reading your Dec. 2 editorial "A cautionary tale," I was compelled to clarify some information included in the editorial.

There is no long list of Michigan municipalities moving toward Chapter 9 bankruptcy, as you claim. The Michigan Department of Treasury does post Fiscal Indicator Scores for local units of government on its website. The site clearly notes, however, the scores "are not necessarily predictors of a local government's future financial condition."

In fact, the scores have no linkage whatsoever to Michigan's Local Government Fiscal Responsibility Act, which provides the only avenue for a Michigan municipality to enter bankruptcy. To do so, a local unit would have to be under a financial emergency, with a state-appointed Emergency Financial Manager in place.

In the editorial, you also state that "some cities" are pleading for bankruptcy approval. The only such city discussing the topic is Hamtramck. And while officials have broached the topic, department staff have been quick to set the record straight -- municipal bankruptcy is not possible in Michigan, without a municipality being under the authority of an emergency manager as the result of having a financial emergency declared in the local unit of government.

Terry Stanton

Lansing, Mich.

The writer is public information officer with the Michigan Department of Treasury.

Killer taxes

To the editor:

A note to our progressive friends. There is a good reason President Obama did not eliminate tax breaks for "the rich." He came to the realization that in two years he is going to be a very wealthy ex-president, and taxes on those speaking fees are a killer.

Ahhh, altruistic dreams die painfully.

Richard Wassmuth

Las Vegas