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Detroit Bankruptcy on YouTube

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Stephen P. Banicki
Stephen P. Banicki

The document outlines concerns about Detroit's bankruptcy plan, called the Grand Bargain. It argues that the plan prioritizes saving the Detroit Institute of Arts over turning the city around. Specifically, it says the plan has the city surrender ownership of its art collection valued between $4.1-8.9 billion, in exchange for only $800 thousand. Alternatively, the document proposes selling the art and investing the funds into improving Detroit's public school system, to attract residents and businesses back to the city. It urges Detroit citizens to voice their concerns to those involved in the bankruptcy proceedings.

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Outline of You Tube Presentation on Detroit Bankruptcy I am Steve Banicki and I am going to share with you my concerns about the direction of Detroit's bankruptcy. The trial is about to begin and it will determine a Plan of Adjustment under which the city will be required to live with for many years and maybe decades to come. The city, your representatives, and you its citizens, have had little input into the plan. Even the comments appearing in the two major newspapers come primarily from the suburbs. I encourage you to become more vocal. The current focus of the plan is on eliminating debt and negative budgets rather than the long-term viability of the city. Yes, I know minimizing debt is needed but that is not what we live for. The Grand Bargain is geared towards saving the DIA rather than turning the city around, providing vital services and making Detroit a destination for middle class Americans to raise families and have their children experience a better life than their parents. A critical part of the plan is called the Grand Bargain and it is not so Grand. At the heart of the proposal is the city surrenders ownership of its art stored at the Detroit Institute of Art, currently valued between $4.1 and $8.9 billion, and the city receives $800 thousand which goes towards paying some of the creditors. In other words, you the citizens give up between $3.3 and $8.1 billion and receive nothing in return. The Grand Bargain makes no sense unless the objective is saving the DIA rather than Detroit. Per an article in the Detroit Free Press dated May 10, 2014 "This current fiscal years general fund spending came in at $996 million. Over the next three years, Orrs budget calls for $937 million, $922 million and $927 million, respectively, in general fund spending." Is this what you want after the bankruptcy? You giveup billions of dollars and in return the citizens get more of the same from the city. Living in the city is not going to improve unless the Detroit Public Schools significantly improve. The public schools are part of the infrastructure of the city. The city's middle class is not going to grow and prosper unless Detroit's public schools become a destination school system. Just think what kind of world class public school system can be built with an additional $8 billion. The city needs to sell the art and invest the proceeds into providing the best primary and secondary public school system in the state. Kevyn Orr and the Law firm of Jones
Outline of You Tube Presentation on Detroit Bankruptcy Day has the responsibility to assure the creditors in bankruptcy do not get there hands on these funds. This is possible. Several years ago Jones Day wrote a white paper regarding chapter 9 bankruptcy in which they said the judge cannot prevent a city from selling assets to invest in infrastructure of the city while the bankruptcy was proceeding. A city's public school system is part of its infrastructure. With this money, the school system can afford the best teachers in the state and hold them accountable. The average classroom size would be reduced to compete with the top private schools in the area such as Roeper, Grosse Pointe Academy and Detroit Country Day. An administrator at Roeper indicated their average class size is 8 students per teacher and at Grosse Pointe Academy their objective is to limit the student to teacher ratio to no greater than 12 to 1. The physical environment of the Detroit's schools could also be upgraded making them more conducive to learning. With the best public school system in the state there would be a rush of middle class families living in the suburbs moving to Detroit to avoid paying the high tuition rates at the private schools. With people migrating to the city more stores, other retail and entertainment establishments will open in Detroit. Don't think this will be easy. Besides the money, it will take a lot of planning, implementing and plain hard work. It will also take time, as much as ten years, to turn the school district totally around. Progress will begin immediately but a complete turn around will take the greater part of the next decade. What is important is to begin. If the Grand Bargain as written is agreed to in bankruptcy the opportunity to use the city's assets stored at the DIA will be lost forever. The city will no longer own the art. What should the citizens of Detroit do? You need to make your voices heard. Detroiters' should convey their feelings to the City Council, the Mayor, Kevyn Orr, Congressman John Conyers and most importantly Judge Rhodes. If they don't hear from the residents they will assume everyone is fine with the Grand Bargain. Here are some ideas and I am sure Detroit citizens like Sherry Gay-Dagnogo, Ken Whittaker and Shanay Watson- Whittaker have more and better ideas than I. 1. Have 10 to 15 citizens attend all trial proceedings. It need not be the same citizens every day but your presence will transmit your concern. Be polite and
Outline of You Tube Presentation on Detroit Bankruptcy attentive. 2. Contact your city councilman and the Mayor to voice your concern about the Grand Bargain. 3. Be prepared if anyone from the press wants to interview you. I am more than happy to talk to anyone about the bankruptcy and the Grand Bargain. Feel free to call or text me at 248-677-1493. 4. Don't forget whose city it is. YOUR CITY!

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Detroit Bankruptcy on YouTube

  • 1. Outline of You Tube Presentation on Detroit Bankruptcy I am Steve Banicki and I am going to share with you my concerns about the direction of Detroit's bankruptcy. The trial is about to begin and it will determine a Plan of Adjustment under which the city will be required to live with for many years and maybe decades to come. The city, your representatives, and you its citizens, have had little input into the plan. Even the comments appearing in the two major newspapers come primarily from the suburbs. I encourage you to become more vocal. The current focus of the plan is on eliminating debt and negative budgets rather than the long-term viability of the city. Yes, I know minimizing debt is needed but that is not what we live for. The Grand Bargain is geared towards saving the DIA rather than turning the city around, providing vital services and making Detroit a destination for middle class Americans to raise families and have their children experience a better life than their parents. A critical part of the plan is called the Grand Bargain and it is not so Grand. At the heart of the proposal is the city surrenders ownership of its art stored at the Detroit Institute of Art, currently valued between $4.1 and $8.9 billion, and the city receives $800 thousand which goes towards paying some of the creditors. In other words, you the citizens give up between $3.3 and $8.1 billion and receive nothing in return. The Grand Bargain makes no sense unless the objective is saving the DIA rather than Detroit. Per an article in the Detroit Free Press dated May 10, 2014 "This current fiscal years general fund spending came in at $996 million. Over the next three years, Orrs budget calls for $937 million, $922 million and $927 million, respectively, in general fund spending." Is this what you want after the bankruptcy? You giveup billions of dollars and in return the citizens get more of the same from the city. Living in the city is not going to improve unless the Detroit Public Schools significantly improve. The public schools are part of the infrastructure of the city. The city's middle class is not going to grow and prosper unless Detroit's public schools become a destination school system. Just think what kind of world class public school system can be built with an additional $8 billion. The city needs to sell the art and invest the proceeds into providing the best primary and secondary public school system in the state. Kevyn Orr and the Law firm of Jones
  • 2. Outline of You Tube Presentation on Detroit Bankruptcy Day has the responsibility to assure the creditors in bankruptcy do not get there hands on these funds. This is possible. Several years ago Jones Day wrote a white paper regarding chapter 9 bankruptcy in which they said the judge cannot prevent a city from selling assets to invest in infrastructure of the city while the bankruptcy was proceeding. A city's public school system is part of its infrastructure. With this money, the school system can afford the best teachers in the state and hold them accountable. The average classroom size would be reduced to compete with the top private schools in the area such as Roeper, Grosse Pointe Academy and Detroit Country Day. An administrator at Roeper indicated their average class size is 8 students per teacher and at Grosse Pointe Academy their objective is to limit the student to teacher ratio to no greater than 12 to 1. The physical environment of the Detroit's schools could also be upgraded making them more conducive to learning. With the best public school system in the state there would be a rush of middle class families living in the suburbs moving to Detroit to avoid paying the high tuition rates at the private schools. With people migrating to the city more stores, other retail and entertainment establishments will open in Detroit. Don't think this will be easy. Besides the money, it will take a lot of planning, implementing and plain hard work. It will also take time, as much as ten years, to turn the school district totally around. Progress will begin immediately but a complete turn around will take the greater part of the next decade. What is important is to begin. If the Grand Bargain as written is agreed to in bankruptcy the opportunity to use the city's assets stored at the DIA will be lost forever. The city will no longer own the art. What should the citizens of Detroit do? You need to make your voices heard. Detroiters' should convey their feelings to the City Council, the Mayor, Kevyn Orr, Congressman John Conyers and most importantly Judge Rhodes. If they don't hear from the residents they will assume everyone is fine with the Grand Bargain. Here are some ideas and I am sure Detroit citizens like Sherry Gay-Dagnogo, Ken Whittaker and Shanay Watson- Whittaker have more and better ideas than I. 1. Have 10 to 15 citizens attend all trial proceedings. It need not be the same citizens every day but your presence will transmit your concern. Be polite and
  • 3. Outline of You Tube Presentation on Detroit Bankruptcy attentive. 2. Contact your city councilman and the Mayor to voice your concern about the Grand Bargain. 3. Be prepared if anyone from the press wants to interview you. I am more than happy to talk to anyone about the bankruptcy and the Grand Bargain. Feel free to call or text me at 248-677-1493. 4. Don't forget whose city it is. YOUR CITY!