Day: July 10, 2015

Why Michigan’s Approach for Detroit’s Schools is Better Suited for Chicago’s – WP Original

July 10, 2015 No Comments

  By: Mark Glennon* The Detroit Public School District, like Chicago’s, is struggling for its financial life. Michigan Governor Rick Snyder earlier this year proposed a plan roughly comparable to the restructuring of General Motors that created a “new GM” to replace the old one, which allowed the new one to shed unaffordable debts and contracts. Under the plan proposed for Detroit schools, the “old school district” would be left in place to liquidate certain debt obligations of the Detroit Public Schools. A new Detroit school district would be created that would assume the educational duties. Some tax revenue would

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Chicago’s Emanuel administration splurges on ‘scoop and toss’ financing – Government News – Crain’s

July 10, 2015 No Comments

The city plans to use $170 million from a new $1.17 billion bond sale for a so-called “scoop and toss” deal—the largest annual amount since the practice began under the Daley administration. The financial maneuver is a way to restructure existing debts by delaying repayment of principal, sometimes for decades, while adding to interest payments, effectively scooping up the debt and tossing it into the future. “Scoop and Toss” — add that one to your vocabulary. Synonyms are can-kicking, denial, delay, extend, pretend.

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Study: Yes, Higher Marginal State Tax Rates Encourage Out-Migration

July 10, 2015 No Comments

“To illustrate the magnitude of the tax effect, we estimate that by 2010 cumulative losses since the enactment of New Jersey’s 2004 “millionaires’ tax” were as much as 42,000 taxpayers and $6.9 billion in annual adjusted gross income. These results suggest that sustained, relatively high income tax rates could gradually erode a state’s population and revenue base.”

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