Posts

Thursday Morning: Don’t Feel Bad

/9 Comments/in , /by

While I am sorry a family has lost their father, I can’t mourn the bizarre passing yesterday of Chesapeake Energy CEO Aubrey McClendon.

McClendon had been indicted Tuesday for price fixing on real estate related to natural gas and oil development. Charges against him had been expected since 2012 when the violations of the Sherman Antitrust Act came to light.

But for a Michigander like me, this is not a remote and abstract story. Property over the Collingwood Shale formation in Northern Michigan was included in collusion between McClendon and Encana Oil & Gas executives to “avoid bidding up” prices. Between Chesapeake and Canadian corporation Encana, the two businesses owned nearly a million acres of Michigan — a chunk of land the size of Rhode Island.

Imagine it: two corporations buying a state-sized mass of land at rigged prices within a state. And all of it with underground water connected to a couple of the largest freshwater bodies in the world, much of it earmarked for fracking.

“Energy visionary“? That’s what other resources leeches might call McClendon, who was at the heart of a dispute over Lake Michigan shoreline property. The land had been willed to “the children” of Benton Harbor by former residents J.N. and Carrie Klock, in memory of their daughter Jean, for use as a public park. In dedicating the land, J.N. Klock said, “…See to it that the park is the children’s.”

It was the only such lakefront park for Benton Harbor, a financially-challenged city with 89% African American residents. But the property adjoined the intended development of a Jack Nicklaus golf course, and the McClendon family as well as other notable figures (like Rep. Fred Upton and Whirlpool CEO Jeff Fettig) lived in the neighborhood of both the intended golf course and Jean Klock Park. The dispute caused considerable heartburn for Benton Harbor residents. It still boggles my mind that wealthy parasites like McClendon simply felt they could ignore the intent of the Klocks’ intentions, their proxies arguing the pricey (read: unaffordable to the average Benton Harborite) golf course would meet the standard of public access.

Note also, that Benton Harbor was among the Michigan cities to which an emergency financial manager had been appointed because of its municipal financial crisis — just like Flint, Michigan.

I can only imagine what other parasitic nonsense will emerge in the debris field left by McClendon. Good riddance to bad rubbish.

Quick hits

That’s enough damage for now. Be anti-parasitic and do something nice for others today.

MI Dems to Benton Harbor: You’re on Your Own

/in /by

Eclectablog, who has been doing solid reporting on the takeover of Benton Harbor by an Emergency Financial Manager, has been wondering why MI’s Democratic Party hasn’t been more vociferous in supporting Benton Harbor. Today, he reported that MI Dems Chair Mark Brewer told Berrien County’s Dems that the MDP would not help them.

The occasion was the monthly meeting of the South County Democratic Club in Berrien County. Commissioner Dennis Knowles was in attendance. According to Commissioner Knowles, with whom I have spoken, Chair Brewer informed him that the MDP “could not help Benton Harbor” though he encouraged their recall effort of Rep. Al Pscholka. The MDP, however, will not assist in any way. In other words, Benton Harbor is on their own.

Now, while I don’t always agree with Brewer’s tactics, I respect his pragmatism, so I suspect part of what’s going on is driven by funding and/or a sense of the viability of recall efforts (the Snyder recall, in particular, would be really difficult to pull off because of the way our recall law is written).

But I also suspect something else is going on. Remember, Democrats in MI have themselves supported the concept of Emergency Financial Managers. In fact Jennifer Granholm’s administration put Pontiac and Benton Harbor itself into EFM status. So while Dems might be happy to knock off some Republican State Reps, they apparently remain committed to a city-based approach to financial stability. And that, it seems, stems at least partly from the way race has played out in this state.

As I noted before, one of the key factors contributing to Benton Harbor’s awful state is racism. Ditto Detroit, the schools of which are widely assumed to be the next target for Snyder’s EFM law. In both cases, a long history of segregation has resulted in the loss of the tax base of the city as more affluent whites left. The proper financial solution to that problem should have been more regionalized funding, but that wasn’t politically viable. Remember–MI is the home of the Reagan Democrats, the working class whites whom Reagan persuaded to put social  issues ahead of their own class interest.

The thing is, it probably could be today. Or could have been just after the 2008 election. Here’s what Stan Greenberg said at that point when he claimed–prematurely, given the rise of the TeaPartiers–the Reagan Democrats were dead.

For more than 20 years, the non-college-educated white voters in Macomb County have been considered a “national political barometer,” as Ronald Brownstein of National Journal described them during the Democratic convention in August. After Ronald Reagan won the county by a 2-to-1 margin in 1984, Mr. Brownstein noted, I conducted focus groups that “found that these working-class whites interpreted Democratic calls for economic fairness as code for transfer payments to African-Americans.” So what do we think when Barack Obama, an African-American Democrat, wins Macomb County by eight points?

I conducted a survey of 750 Macomb County residents who voted Tuesday, and their responses put their votes in context. Before the Democratic convention, barely 40 percent of Macomb County voters were “comfortable” with the idea of Mr. Obama as president, far below the number who were comfortable with a nameless Democrat. But on Election Day, nearly 60 percent said they were “comfortable” with Mr. Obama. About the same number said Mr. Obama “shares your values” and “has what it takes to be president.”

Given Macomb’s history, this story helps illustrate America’s evolving relationship with race. These voters, like voters elsewhere, watched Mr. Obama intently and became confident he would work for all Americans and be the steady leader the times required.

For a brief period in 2008, MI (which is a pretty damned segregated state) put aside its legacy of racism in hopes a black President could bring benefits for all Americans. (Then Republicans used Obama’s imperfect effort to do that–in the form of health care–to stoke that racism again.)

It seems to me, Democrats need to finally, enthusiastically embrace a model that puts collective well-being at the center of a plan to respond to globalization, rather than letting black cities suffer the twin plights of racism and globalization. And that ought to include not only some political support for Benton Harbor’s fight for democracy, but also some creative solutions that don’t amount to starving cash strapped cities all in the name of short term–and short-sighted–fiscal responsibility.

Using New Emergency Financial Manager Law, They Start Dissolving Governments in Michigan

/in /by

In what is likely to be just the first of several dissolutions of democratically elected city governments and school boards in Michigan, the Emergency Financial Manager of Benton Harbor, Joseph Harris, just took away all authority from the city’s elected government.

I, Joseph L. Harris, the duly appointed Emergency Manager for the City of Benton Harbor, Michigan (the “City”), pursuant to the power and authority granted by Act 4 of the Public Acts of Michigan of 2011, being MCL 141.1501 et seq (the “Act”), do hereby resolve and order as follows:

WHEREAS, Section 19(ee) provides that the Emergency Manager may exercise any power or authority of any office, employee, department, board, commission or similar entity of the City, whether elected or appointed;

WHEREAS, the power of the Emergency Manager as set forth in Section 19(ee) of the Act is superior to and supersedes any such officer or entity; and

WHEREAS, now, no City Board, Commission or Authority has authority or power to act on behalf of the City as provided in the Act.

NOW, THEREFORE BE IT RESOLVED AS FOLLOWS:

1. Absent prior express written authorization and approval by the Emergency Manager, no City Board, Commission or Authority shall take any action for or on behalf of the City whatsoever other than:

i) Call a meeting to order.

ii) Approve of meeting minutes.

iii) Adjourn a meeting.

2. That all prior resolutions, or acts of any kind of the City in conflict herewith are and the same shall be, to the extent of such conflict, rescinded.

3. This order shall be effective immediately.

Harris, the former Auditor of Detroit, was appointed last year under the Granholm administration. After Harris cut cops and firemen last year, local residents started talking about firing him.

There are two things it helps to know about Benton Harbor. First, it has long been almost entirely dependent on Whirlpool for jobs. And as Whirlpool moved manufacturing out of state and country, its operations in the city have shifted from manufacturing to call center and resort work.

Just about all the cities that have EFMs now–along with Benton Harbor, Pontiac, Ecorse and Detroit’s schools–or have had EFMs–Hamtramck, Highland Park, Flint, and Three Oaks–have been gutted by the shift of manufacturing under globalization.

But Benton Harbor is particularly notable because of how segregated it is. Here’s how CSM described the segregation in a 2003 report on race riots in Benton Harbor (note, the boundary between Benton Harbor and St. Joseph is the river you can see in the map above).

On one side lies St. Joseph, an Eden-like beach town, brimming with barbered lawns, boutique coffee shops, and summer art festivals. Cross to Benton Harbor, and everything changes. White becomes black, and affluence turns to poverty. Frustrated residents sit on sagging stoops and walk by boarded-up businesses.

When Benton Harbor erupted in violence this week, the trigger was ostensibly a high-speed police chase through a residential neighborhood. It was the second such pursuit in three years, and the second to result in the death of a young black.

But as with most riots, this is a story that goes much deeper than the immediate event that lit the fuse. It’s about years of pent-up frustration over that gulf that separates Benton Harbor from St. Joseph. Over the sense most Benton Harbor residents have that a fair trial is impossible in Berrien County, which encompasses both towns, and that the police force engages in practices – like high-speed chases – that would be unheard of across the river. Over the accumulated anger of being pulled over by cops too often, of having job applications rejected before they were glanced at, of the assumptions that if you live in Benton Harbor, you must be a drug dealer, a criminal, a drop-out.

[snip]

The town of 11,000 is 92 percent black. Federal figures show that the average income is $17,000 a year.

By contrast, St. Joseph (population 8,800) is 90 percent white. Bustling with clothiers and cafes, its average unemployment rate last year was below 2 percent. Indeed, most of Berrien County is white, conservative, and affluent.

Now, Harris is black, and the other cities with EFMs aren’t as segregated (Pontiac is 39% white and 48% African American and Ecorse is 52% white and 40% African American, though Detroit is 12% white and 81% African American).

But it is rather telling that the first city in MI to have its democracy taken away under Rick Snyder’s EFM law is one that has long suffered under both globalization and racism. Rather than finding real solutions to those long-festering problems, we’re just going to shut it down.