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Baby Bailout: White House to Send Millions to Detroit

by Keith Koffler on September 27, 2013, 8:07 am

Updated 10:25 am ET

Even as the nation sits on the edge of a financial crisis driven by the need to incur more debt, the White House has found $300 million to send to mismanaged, financially beleaguered Detroit, according to CNN.

The money is being taken “from programs that are available for cities across the nation, not just Detroit.”

The action amounts to a backdoor assistance plan that effectively circumvents Congress, which would not support a bailout. A White House official was vague on how the money had been cobbled together.

According to an AP story, which had stated the total at $100 million:

Gene Sperling, chief economic adviser to President Obama, said the administration scrounged through the federal budget and found untapped money that “either had not flowed or had not gotten out or not directed to the top priorities for Detroit.”

How it is that there is $300 million lying around for Detroit is unclear. Sperling, who is from Michigan, is director of the White House National Economic Council but will be leaving the post January.

Though a significant sum, the money will make hardly a dent in Detroit’s $18 billion in debt. What’s more, the AP notes, “Detroit has had a poor record in making sure grant money is used properly and even spent at all.”

Sperling, Attorney General Eric Holder, Transportation Secretary Anthony Foxx and HUD Secretary Shaun Donovan are meeting with state and local officials today to discuss the funding.

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{ 39 comments }

Den September 27, 2013 at 8:23 am

Why not? It looks like the african interior, no lights on.

Mandy Manners September 27, 2013 at 9:26 am

I hope some of the $25 million in funds to “ensure working families can live in safe neighborhoods” includes money to restore street lights because darkness is a beacon for criminals.

lizzytalorburton September 27, 2013 at 9:18 pm

This administration is so biased, they investigate whitey every day and turn down their requests every day, but they have MILLIONS OF DOLLARS FOR OBAMAS’ DISGUSTINGLY LAVISH VACATIONS, THE MUSLIM BROTHERHOOD ALSO, OBAMA’S BROTHER, AND NOW DETROIT. IT SCREAMS OF FAVORITISM FOR ONLY CERTAIN GROUPS OF PEOPLE and they don’t care who knows it, Obama laughs at all of us as he cleans America out for his “friends and relatives”.

lizzytalorburton September 27, 2013 at 9:24 pm

After all, its not his money (Obama) — he could care less, he’s riding his gravey train with other people’s money — he has no shame, no compassion, no good judgment, no character, no regard for human life, he has to be dead inside to do the things that he does and say the things that he says, just a greedy ignorant thief, definitelly not an honorable man who should be President, its a nightmare having him in the White House, but you know what they say, what goes around comes around, and also we all get it in the end, all of us including Barack Obama.

D.T. September 28, 2013 at 7:54 pm

Whenever the dumbocRATS are in charge, economies crumble! California and Illinois are states…and they are in the same economic sinking boat!

Scottso September 27, 2013 at 8:27 am

$100 million?
That’s easy.
They probably looked in the couches or raffled off a few lunches with the Supreme Leader

Mandy Manners September 27, 2013 at 8:39 am

Detroit has had a poor record in making sure grant money is used properly and even spent at all.

In 2011, Mayor Dave Bing fired the director of the city’s Human Services Department after an internal investigation revealed $200,000 intended for poor residents was spent on office furniture for staff members.

The following year, his office had to scramble to use about $20 million in grants that had been left sitting for demolitions of thousands of vacant houses. The city’s Police Department also allowed a $400,000 grant to lapse for a new armored vehicle.

SNIP
***************

Between Orr and the Feds, I hope that this new money is under a microscope.

Mandy Manners September 27, 2013 at 8:43 am

The funding announced by Sperling will include $65 million in Community Development Block Grants for blight eradication, $25 million in a public-private collaboration for commercial building demolition and nearly $11 million in funds to ensure working families can live in safe neighborhoods.

SNIP
***************

After all the blight is gone, what will take its place? How will that be funded?

Al47 September 27, 2013 at 9:09 am

What purpose does it serve when it’s in a death spiral? I’m abhorred thinking of how this govt. squanders money then claims it doesn’t have enough.

srdem65 September 27, 2013 at 9:16 am

They can give the programs all the fancy DC names they like, butt it is a union payoff, plain and in our face.
$85 million for demolition of blight = trade union payoff
$11 million for safe neighborhoods = police and fire union payoff.

The Federal government has too, TOO, much money pouring into their pork barrels. It’s a weird kind of wealth redistribution where private money becomes state money to spend or waste as it sees fit.
They don’t know where it all is, they don’t know where it all went, and they don’t care….they just want more.

Mandy Manners September 27, 2013 at 9:28 am

“$11 million for safe neighborhoods = police and fire union payoff.”

Don’t forget this: Holder will announce $3 million that, in part, will be used to hire new police officers. About $25 million also will be expedited to Detroit to hire about 140 firefighters and buy new gear.

AFVet September 27, 2013 at 10:27 am

There has been a major exodus from Detroit adn now the rest of the people have to bail them out.
Socialism on steroids.

Mandy Manners September 27, 2013 at 11:00 am

You couldn’t pay me to live there.

Kimbly September 27, 2013 at 11:41 am

I’ve heard stories from Detroit firefighters. They are working their butts off. Problem is I don’t think the money will actually go to the police and firefighters that are out there dealing with it all.

Like they say, a movie ticket costs $9, a gallon of gas costs $3.60. What do you think the teenagers are going to do for fun in a city full of abandoned buildings?

Mandy Manners September 27, 2013 at 1:04 pm

Devil’s Night is in just over a month.

Kimbly September 27, 2013 at 1:38 pm

The firefighters say devils night isn’t even a big deal anymore because every day is like that. I grew up near Detroit and can’t imagine a burning city night after night.
http://www.reuters.com/article/2013/07/13/us-usa-detroit-arson-idUSBRE96C06E20130713

Mandy Manners September 27, 2013 at 1:44 pm

I had no idea. I feel for those people who’d love to move but cannot afford to do so.

rulierose September 27, 2013 at 8:01 pm

ok, whoa now! Detroit has a whole ton of problems, but you-all are making it sound like the set of “Escape from New York”! I live about 40 miles from the city and I can assure you, it’s not like that. there’s actually a lot going on downtown. it’s just that nobody much LIVES there.

people are still going to concerts at the Fox and going to Tiger and Lions games, eating very expensive dinners at the Whitney, gambling at the casinos, drinking retsina in Greektown, listening to the kind of alt-music that has always seemed to grow up in Michigan. if you can go back to Bloomfield Hills at night, it’s all good.

but, despite having given you that PR campaign for Detroit, I can’t support the bailout, simply because it won’t help.

MarjoJimbo September 27, 2013 at 9:54 am

I thought Congress controlled the purse strings.

Julie Brueckheimer September 27, 2013 at 10:57 am

Maybe the $67 million missing from Obama’s slush fund is part of this.

Mandy Manners September 27, 2013 at 11:36 am

Maybe the money’s coming from the budgets of the DoJ, DoT and HUD.

Julie Brueckheimer September 27, 2013 at 11:39 am

There’s a missing $67 million that Greta V S keeps harping about. I wonder about her sometimes–she keeps harping about the 5 week Congressional recess in August too. I mean, let it go. It’s as if she has some age related problems.

Kimbly September 27, 2013 at 11:34 am

This is why my blood boils every time I pay taxes. After being siphoned off through a maze of government bureaucrats it finally just gets thrown in the trash, figuratively speaking. $300 million is equal to how much hard earned cash before it even gets to Detroit?

Geoff Caldwell September 27, 2013 at 11:48 am

An how much would it cost to open up the White House to taxpayers for tours?

gracepmc September 27, 2013 at 12:28 pm

You will never see that place open to the American public as long as Obama remains as President.

Julie Brueckheimer September 27, 2013 at 12:46 pm

He hates anyone who opposes him. It’s sick.

srdem65 September 27, 2013 at 1:25 pm

You may be right, @gracemc, butt don’t be surprised by a “special Christmas present” when the O’s announce they’re opening the WhiteHouse for the holiday.

After all, the Mrs has dozens of trees to decorate and what good would that be if no one was there to admire her handiwork?

Kimbly September 27, 2013 at 1:44 pm

“One of my favorite times of the season is when we have you folks come and enjoy the beautiful decorations.”

ImNoDhimmi September 27, 2013 at 3:11 pm

Oh, there’ll be people there, alright, oohing and aahing and fawning. Jay-Z and Beyoncé, Valjar, Jennifer Aniston, George Clooney, Katy Perry, Ben Affleck, Tom Hanks………………

Carol September 27, 2013 at 2:21 pm

If there is “extra” money lying around, we taxpayers would like it back.

DLB September 27, 2013 at 2:21 pm

It wouldn’t occur to them to give it back to the taxpayer… no, that NEVER happens.

Elaine September 27, 2013 at 3:02 pm

I know I will be accused of being a racist, but this found money is going to Detroit because it is almost 100% black, run into the ground by black Democrats corrupt beyond imagination, and both are Obama’s favored people.

Chuck September 27, 2013 at 4:26 pm

Nothing wrong with your statement. It is a shame to throw good money after bad to animal farms like detroit.
As for “where’s the money going to come from”?…let me enlighten some of you.
It is estimated that every day of the year the oil and gas industry sends Washington DC $95 million. It comes from oil and gas taxes at the producing well head, then taxes from transportation. Then taxes on refining, taxes on water and waste disposal, taxes on more transportation…and finally taxes at the retail level. Everyone of those taxes adds to the final cost of the fuel you put into your tank, every jug of lube oil you buy and all the natural gas your stove or water heater burns. Add to that all business taxes from other industries and you’ll understand how a few billion here and a few billion there gets “lost”.
The feral government needs to be downsized by about 90% and a whole new approach to taxes needs to be researched then implemented.
And, we need to clean all the statists out of our country.

K Smith September 27, 2013 at 4:55 pm

So, this 6 th of 1 % will do what???? the amount will find its way to a few pockets of the politicians.

jason September 27, 2013 at 6:47 pm

how much god can be accomplished with 100 million dollars with a deficit of 18 billion? last i heard a million dollars is kinda short of a billion dollars. i’m sure i’ve heard that before.

patty watson September 27, 2013 at 8:31 pm

Will this money also be available to the many white families forced to flee Detroit and its unsafe enviorns? Money for moving expenses etc?We are talking about fair share here right?

Dan September 28, 2013 at 10:28 am

Detroit has been a cesspit for decades. Total waste of money as is everything this administration has done. Let the place burn to the ground and forget it. No loss.

D.T. September 28, 2013 at 7:52 pm

Whenever the dumbocRATS are in charge, economies crumble! California and Illinois are states…and they are in the same economic sinking boat!

Orpha B. Cade September 28, 2013 at 10:28 pm

SEND “WHITEHOUSE DOSSIER”