Latest news with #GrandBargain
Time Magazine
20-05-2025
- Business
- Time Magazine
Darren Walker
In the early months of the pandemic, Ford Foundation president Darren Walker came up with an idea so radical that, he recalls, 'everyone asked me, 'You can really do that?!' Everyone.' His brainstorm: with interest rates near zero and stocks tanking, major philanthropies should issue 50-year bonds to raise money for COVID-19 relief. It would save them from having to sell assets at a moment when their value had dropped significantly. 'It was an arbitrage play, really,' he says. Ford's 'social bond,' the first in U.S. nonprofit history, raised $1 billion to buck up hundreds of flailing nonprofit grantees during the unprecedented crisis. He lobbied 14 other major philanthropies to also issue bonds but only four followed his lead initially. 'Too many operate from a culture of no as opposed to asking, How do I get to yes?' Walker says. 'I believe philanthropy should be doing the bold, risk-taking work that the government or private sector isn't willing to or cannot do.' (After seeing how successful the social bonds were, some of the leaders who had initially refused issued them too.) Walker, who will step down from Ford at the end of 2025 after 12 years in charge, has been a transformative figure. Under his direction, the $16 billion foundation, among the nation's wealthiest, turned its attention sharply to issues of social justice and inequality, with a focus on boosting educational opportunities and civil rights for people of color and those with disabilities—Walker established the first disability-rights program by a major foundation. In 2014, he chaired the committee to lead Detroit out of bankruptcy, corralling automakers, unions, and other stakeholders to strike an $816 million ' Grand Bargain '—Ford contributed $125 million—to pay off the city's debt without jeopardizing the pensions of local-government workers or selling off the city's art-museum collection. This can-do instinct comes, he says, from his own rise from poverty in rural Texas to work first as a lawyer, then an international investor, and for the past quarter-century, in the nonprofit sector. In 2006, he became vice president of the Rockefeller Foundation. Seven years later, he took over Ford, becoming the first out gay Black man to run a multibillion-dollar philanthropy. ' 'Philanthropy should be doing the bold, risk-taking work.' ' The perpetually sunny Walker chuckles as he considers what Henry Ford, the legendary car maker also known for his racist views, would think of someone like him leading the philanthropy that the industrialist established in 1936, then shrugs. 'Things evolve.' Walker is now often the philanthropy head others turn to for advice and perspective; he believes that's partly because he's one of the few who knows what it's like to be poor or marginalized. 'My experience and my background are unusual,' he says. 'I tend to see the world through a lens of abundance and not limitations.' While he's often lauded for his groundbreaking yet collaborative approach— winning the Council on Foundations Award for Distinguished Service in 2024—Walker regards his own record as 'mixed' largely because, in focusing so heavily on poverty and diversity, he worries he failed to notice an important national shift. 'These last few years, we've seen inequality impacting working class white Americans who were not a demographic that was a priority for philanthropy because for most of the 20th century, they were doing better,' he says. 'Now we're seeing white households with indicators of poor well-being, downward mobility, and lower life expectancy. We need to pay attention to that.' It's one of the reasons he decided to step down—so a new leader can look at the Ford Foundation's mission with new eyes. But Walker, whose longtime partner died of heart failure in 2019, also wants to look at his own life anew. His parting advice to fellow heads of philanthropies? 'It's easy to convince yourself that you're a success when you're a foundation president because people tell you you're doing a good job all the time,' Walker says. 'Don't believe that. We need to assess ourselves with some humility.' —Steve Friess
Yahoo
27-03-2025
- Business
- Yahoo
Mike Duggan can't claim sole credit for Detroit's amazing recovery
Detroit Mayor Mike Duggan gave a masterful presentation Tuesday evening that I heard as much as an opening speech in his run for governor as his final State of the City address. Speaking at the new Hudson's Detroit building, Duggan touted the city's fiscal stability during his three terms, the city's new investment-grade credit rating, thousands of new housing units built and even a slight rise in Detroit's population after decades of decline. A lot to celebrate, for sure. And Duggan can justly claim credit for much of it. But what Duggan and many others miss is how deep the roots of Detroit's recovery go. Key building blocks of Detroit's comeback were in place at least a decade before Duggan took office in 2014. And before his time in office recedes into the history books, it's worth taking another look at exactly how this amazing city came back from the dead. More from John Gallagher: I'm a historic preservationist, but these RenCen towers have to go Certainly, the city's fiscal stability during Duggan's term owes much to Detroit's spin through Chapter 9 municipal bankruptcy in 2013-14. The Grand Bargain ― a financial agreement between philanthropy, the state and the Detroit Institute of Arts to secure the museum's collection and protect retirees' pensions in the bankruptcy process ― wiped some $7 billion of debt off the city's books, giving Detroit what former federal Judge Gerald Rosen, who served as mediator in the case, called the cleanest balance sheet of any city in America. Twelve years of balanced city budgets under Duggan flowed from that settlement. Then, too, the role of philanthropic foundations that pumped more than $300 million into the Grand Bargain followed years of an activist approach by philanthropy to help revive Detroit. The Kresge Foundation, Community Foundation for Southeast Michigan, Hudson's Webber and other philanthropies, flush with legacy wealth from Detroit's glory years, were already bankrolling the RiverWalk, the revival of Eastern Market, and a host of other social, artistic and neighborhood programs before Detroiters elected Duggan. Indeed, it's fair to say that philanthropic dollars, which I sometimes think of as money from heaven, has underwritten a vast amount of Detroit's revival. And speaking of the RiverWalk and Eastern Market, those were just two municipal operations languishing under direct city control that were handed off during Detroit's woeful pre-bankruptcy years to non-profit conservancies and public authorities. A city government too broken and dysfunctional to create the RiverWalk or revive the market spun those off to a whole series of newly created non-profit entities, where they thrived. Nor were they alone. Campus Martius Park, the city's convention center ― now called Huntington Place ― the city's workforce development agency, the DIA and Detroit Historical Museum ― all these and others were spun off from direct city control into non-profit stand-alone entities that took them in many cases from mediocre to newfound success. Ditto the many improvements to Belle Isle Park, once the island was handed off to the state's Department of Natural Resources, during the bankruptcy, after years of neglect. And more: The long-term transition in the city's economy from one based entirely on giant auto-related corporations to a more entrepreneurial model with hundreds of new startups ― all started in the decade before the mayor took office. And of course Dan Gilbert moved his mortgage business from the suburbs to downtown in 2010, and had already begun his unprecedented work of revitalizing downtown's derelict buildings and filling them with his workers by the time Duggan was sworn in. More from Freep Opinion: In race to succeed Gretchen Whitmer, Gilchrist says he can unite Democrats Don't get me wrong ― I believe Duggan will rank among Detroit's greatest mayors. He ran a tight fiscal ship, won back the confidence of both residents and business leaders, restored the city's parks, nurtured a revival in many Detroit neighborhoods and used the leeway given him by the bankruptcy and Gilbert's efforts to keep moving confidently forward. You might even say his record sets him up as a credible candidate to be Michigan's next governor, as he hopes to be. But he didn't do it alone, nor did the revival start with him. One day, historians write the full history of Detroit's amazing urban recovery. They'll give Duggan his full share of credit. But they'll note the recovery was a mosaic, not a silver bullet. Duggan is one in a vast cast of players who believed in the city and worked to make it better. John Gallagher was a reporter and columnist for the Free Press for 32 years prior to his retirement in 2019. His book, Rust Belt Reporter: A Memoir, was published last year by Wayne State University Press. Submit a letter to the editor at and we may publish it online and in print. Like what you're reading? Please consider supporting local journalism and getting unlimited digital access with a Detroit Free Press subscription. We depend on readers like you. This article originally appeared on Detroit Free Press: Mike Duggan was just one part of Detroit's comeback| Opinion
Yahoo
01-03-2025
- Business
- Yahoo
Mayor Mike Duggan delivers $3B Detroit budget with tax cuts, DDOT boost, homeless outreach
Detroit Mayor Mike Duggan's last budget presentation as the city's chief executive Friday showcased a host of plans touting areas of growth and moves to solidify the city's future: a proposal for a significant property tax cut, increased bus service, more money and resources to combat homelessness and a clarion call to press state lawmakers to approve funding for Community Violence Intervention programs. Duggan was all smiles walking into the City Council chamber, wearing his usual blue plaid suit jacket and shaking hands with some of the city's longtime leaders — even asking Detroit's Legislative Policy Division director whether he will miss him after years of working together to rebuild following the city's historic bankruptcy. This next fiscal year, which begins July 1 and runs through June 30, 2026, Duggan is proposing a $3 billion 2025-26 fiscal year budget across city funds, which includes the general fund and one-time funding. "The day of my first budget presentation, half the street lights in the city were out, the parks were all closed, the ambulances didn't show up for an hour and there were 47,000 abandoned houses in this city. It was a city that didn't have a lot of hope. It is a very different city today," Duggan said. Duggan took office in 2014 and was confronted with a multitude of important tasks, including balancing and growing the city's budget. And, by most fiscal accounts, he has been successful. But more than a decade later, Duggan has decided to leave the seat to pursue a run for Michigan governor as an independent party candidate. And his budget presentation included work that still needs to be done — including a couple of his pet projects — in Lansing that could benefit Detroit and other Michigan cities. "I'm very conscious of the fact that I want to leave the future administrations a budget that has cushions against what may come," Duggan told City Council members. That includes coming to an agreement on major developments, namely the proposal to demolish and redevelop parts of the iconic Renaissance Center. Here are some of Duggan's budget takeaways: Detroit is running $70 million ahead of projection in the current fiscal year, Duggan said. In fact, for the 11th straight year, Detroit will finish the fiscal year with a surplus, he said, adding the city is $22 million ahead in income tax revenue, $30 million in gaming tax collection and $7 million in property tax growth. The city also is $2 million under on expenditures. Duggan's budget proposal would hold nearly $500 million in reserves, which includes $150 million for the city's Rainy Day Fund and $350 million in the Retiree Protection Fund, which sets aside money for pensions. "This city is in good shape," Duggan said. "The reason we're financially strong is our income tax revenue performance. "Those who were here during the Grand Bargain (the deal struck to pull the city out of bankruptcy) legislation know the state of Michigan required us to have a 5% reserve. By state law, we have to have a $75 million Rainy Day Fund. This council has supported a commitment that we've doubled that," Duggan said. The city's income tax revenue has spiked since 2014, including the expected projections from that fiscal year. The Plan of Adjustment estimate projects the revenue to grow from $248 million to $370 million in 2026, with a 2% forecast for income tax growth. "Instead, we have had extraordinary performance with business development and people moving in. We have actually averaged 7% a year, and we are going to have, this year, $470 million," Duggan said, adding the growth has led to giving police officers $10,000 in raises to their base pay, the hiring of more officers, the beautification of several city parks and reducing ambulance response times. "In 2014, when I was required to testify in front of Judge (Steven) Rhodes in the bankruptcy court, he would not let the city out of bankruptcy unless I testified that I believed that the plan we have could be achievable in the next 10 years. And I committed to income tax growth of 2% a year for the next 10 years. That was a little bit of a leap of faith, because the income taxes had done nothing but decline," Duggan said. Duggan did not move on without giving praises to City Council members for recognizing property taxes are "the choke point" in Detroit's development. "When we have 86 mills, and the suburbs have half of that, almost nobody is going to build their business in the city and pay twice as much in taxes, which meant the only way we could recruit these companies was to give them discounts. And you've done it. Everybody up here has supported one or more of the projects that has done this," Duggan said. Detroit mayor promises 24-hour housing hotline after kids die in casino parking garage Detroit asking water main flood victims to sign a waiver. We had 2 lawyers take a look. Duggan added that the city will be "fine" if it continues on the same course. "We are going to have to — before the end of this year I hope — deal with one last issue, and that's going to be the Renaissance Center. I do not want to leave behind a (bad) legacy at the Renaissance Center, like administrations and councils did over the years with the Packard Plant, the (Michigan Central) train station or the Hudson's site. And we have to work through it to get an answer," Duggan said. Duggan also proposed reducing the city's debt millage. Last year, it dropped from 8 to 7 mills, and this next fiscal year, he proposes cutting it from 7 to 4 mills. A mil is the tax rate applied to the assessed value of property. Each mil equals one dollar for every $1,000 of assessed value. "Our property tax collections have been so strong, we are in a situation this year to do a 3-mil tax cut," Duggan said. "If you own a house that's $100,000, that's a $150 a year tax cut. ... This doesn't cut into any of our services, this is money saved because we paid off our past debt." Duggan said more needs to be done to address the city's high property taxes, however, sneaking in a push for the next mayor to advocate for the Land Value Tax, which would tax vacant land owners at higher rates than those with homes or structures on their properties. "One of the biggest savings that could possibly come, though, for property taxes and having relief for homeowners as well as business owners, will have to come from the operational side of things," Councilman Fred Durhal III, chair of the city's budget, finance and audit standing committee, said. "When we look at, again, our operational millage compared to other cities and municipalities, we're double what they are. And so some real, comprehensive tax reform will have to take place. We know those roads lead through Lansing, particularly, to be able to drive them down significant enough where folks can see a huge savings." The mayor is proposing a nearly $20-million increase to the Detroit Department of Transportation's budget. This includes adding more buses and hiring at least 63 more drivers and 24 mechanics. "Today, we're running 178 buses a day. When all buses come in … we'll be running 220 a day," Duggan said. The mayor said it is necessary "for the kind of service we deserve" in the city. Detroit reached its highest level of bus services before the COVID-19 pandemic with 214 buses running a day. By January, Duggan expects DDOT to run 220 buses, praising the new director for maintaining operations. The city receives $6 million annually in federal funding for homelessness initiatives. The mayor and City Council members agreed to match it, bring the total to $12 million, which allowed the city to increase shelters and housing to 110 beds. "As we learned in the tragic circumstances," Duggan said, alluding to recent events involving a homeless mother and her children sleeping in a van, where the children froze to death, "we need to do more." Duggan is proposing an increase to $8.4 million from $6 million from the general fund to double the number of beds to 220 and add more outreach workers. Councilwoman Angela Whitfield-Calloway asked the mayor whether the city's recreational centers could be an option as drop-in centers for those experiencing homelessness, given the potential anxiety some individuals may face approaching police. Duggan said the efforts go beyond police, that outreach workers are on the streets 24 hours a day, adding that a shortage of facilities is not the issue. "At least in this case, the problem was communication, unfortunately. The services, I don't know if we communicated them as thoroughly as we should have. But, at times, we have turned to rec centers and I would say there are other council members who can tell you there is a significant problem in the community when they lose their rec centers," Duggan said. Detroit's Community Violence Intervention initiatives, which aim to reduce crime, were federally funded through the American Rescue Plan Act. However, as that money fizzles out, Duggan is proposing using $4.4 million from the general fund to continue those efforts. The city chose six organizations to receive funding, five of which had "excellent success" at reducing violence, Duggan said. The mayor added that state lawmakers attempted to approve a $75 million Public Safety Trust Fund, which would have provided about $18 million for Detroit. Duggan had planned to spend it on Community Violence Intervention programs, but the legislation did not make it past the Senate. "You need an appropriation, and then you need to create a Public Safety Trust Fund that works like revenue sharing," Duggan said. "The $75 million is sitting in an account for public safety in the cities of this state, and it's going to sit in that Lansing bank account until the Legislature adopts the trust fund bill, and I'm hopeful that that happens soon. But right now, every city is being hurt by the fact this bill is not passed." The mayor touted a drop in crime since the beginning of his tenure, but urged city officials to keep pushing for the legislation to pass. "Either we get the public safety trust through or we are not going to have the kind of expansion of the CVI program that I'm pretty sure everybody in this room would like to see," Duggan said. "We have got to have the CVI folks on the ground in the neighborhoods, combining with the outstanding job the police department is doing with this work and its technology." Durhal said he plans to explore increasing Duggan's proposed budget because the $4.4 million falls within the scope of work through the organizations, but not the performance bonuses they receive, if successful. Dana Afana is the Detroit city hall reporter for the Free Press. Contact: dafana@ Follow her: @DanaAfana. ----- This article originally appeared on Detroit Free Press: Mayor Mike Duggan proposes property tax cuts, in $3-bil Detroit budget
Yahoo
19-02-2025
- Automotive
- Yahoo
EU ready to negotiate on car tariffs with Trump, trade commissioner says
The European Union is prepared to talk with the United States about reducing its 10 percent tariff on cars as part of a broader negotiation aimed at avoiding a transatlantic trade war, a top European Union official said Wednesday. 'This would be something we are ready to discuss,' EU Trade Commissioner Maroš Šefčovič said at an event hosted by the American Enterprise Institute, a center-right think tank based in Washington, D.C., just before he was scheduled to meet with top Trump administration officials. Šefčovič also said the EU is prepared to consider a much bigger deal with Trump that could potentially include tech regulatory issues and certain non-trade concerns, such as EU member states increasing their spending on defense. 'I know that President Trump is a big dealmaker, and there was an idea to have a kind of impressive 'Grand Bargain' package. So let's discuss all these things … because I am a true believer in the transatlantic relationship,' Šefčovič said. President Donald Trump frequently complains that the EU's 10 percent tariff on passenger cars is much higher than the United States' own 2.5 percent tariff. That's one reason he is threatening to impose 'reciprocal tariffs' on the EU as part of a broader U.S. action aimed at raising tariffs on countries around the world. Trump has also threatened additional tariffs on certain sectors such as autos, semiconductors and pharmaceuticals that could separately hit the EU. Šefčovič tried to counter Trump's complaints Wednesday, arguing the EU is a largely open market, with average tariff rates on industrial goods that are about the same as the United States'. He also noted there are 'peak' tariffs on both sides of the Atlantic, including the 25 percent tariff that the United States imposes on pickup trucks, which he suggested should be part of any tariff negotiations. The former Slovak diplomat also noted that while Trump focuses on the U.S. trade deficit in goods with the EU, which totaled $235.6 billion in 2024, the United States runs a trade surplus in services with the EU. When goods and services are combined, the U.S. trade deficit with the EU is only about $50 billion, which equals about 3 percent of $1.7 trillion in annual transatlantic trade. At the same time, Šefčovič vowed to retaliate if Trump makes good on his threats to impose sweeping tariffs. 'To protect European interests, we will have no choice but to respond firmly and strictly but we do hope to avoid the scenario,' Šefčovič said. 'That is why I'm here this week.' Meetings this week: Šefčovič said he planned to underscore the benefits of strong trade for businesses on both sides of the Atlantic when he meets with senior U.S officials. He is meeting Wednesday afternoon with Commerce Secretary Howard Lutnick, U.S. Trade Representative-nominee Jamieson Greer and Kevin Hassett, director of Trump's National Economic Council. Šefčovič is also expected to meet with Sens. Mike Crapo (R-Idaho), chair of the Senate Finance Committee; and committee member Michael Bennet (D-Colo.). 'The EU sees no justification for sudden unilateral tariff increases by the U.S. Our businesses rely on economic stability, predictability and certainty on both sides of the Atlantic,' he said, adding he hoped to come away from the meeting on Wednesday with a clearer idea of what the Trump administration would like to discuss. Tech regulation defense: Šefčovič said Brussels was willing to talk about "Big Tech" issues with the U.S. but indicated the EU would strongly defend its regulations, including measures such as the Digital Services Act and the Digital Markets Act. "The Big Tech companies from U.S., most of them have more clients in Europe than in U.S. And if you look at the revenue, so it's between 30 [percent] to 50 [percent] of the revenue is generated in in the European Union," Šefčovič said. He also asserted the EU's tech rules "really do not have a discriminatory nature," despite complaints from the United States. In addition, the EU's work to impose a "digital services tax" was done in coordination with the U.S. to create a global system, he said. However, Trump has put the EU and other countries on notice that he does not feel bound by the commitments the Biden administration made in international tax negotiations that took place under the auspices of the Paris-based Organization for Economic Cooperation and Development. Trump's nominee to be U.S. trade representative, Jamieson Greer, also recently told Congress that he was prepared to defend American tech companies against foreign regulation by threatening tariffs if necessary. "If anybody's regulating our digital companies, it's going to be us," Greer said. On the WTO: Šefčovič also called the World Trade Organization 'very important' in his remarks, but added that the international body 'has to adjust' to the 21st century, and account for new discussions including those around digital services. 'What needs to be also very clearly addressed, is that the WTO mechanism is used by non-market economies,' he added, in a likely reference to countries like China that have powerful state-backed industries. 'For this, I think it will be much better, much stronger, if we can do it together with the United States.'
Politico
19-02-2025
- Automotive
- Politico
EU ready to negotiate on car tariffs with Trump, trade commissioner says
The European Union is prepared to talk with the United States about reducing its 10 percent tariff on cars as part of a broader negotiation aimed at avoiding a transatlantic trade war, a top European Union official said Wednesday. 'This would be something we are ready to discuss,' EU Trade Commissioner Maroš Šefčovič said at an event hosted by the American Enterprise Institute, a center-right think tank based in Washington, D.C., just before he was scheduled to meet with top Trump administration officials. Šefčovič also said the EU is prepared to consider a much bigger deal with Trump that could potentially include tech regulatory issues and certain non-trade concerns, such as EU member states increasing their spending on defense. 'I know that President Trump is a big dealmaker, and there was an idea to have a kind of impressive 'Grand Bargain' package. So let's discuss all these things … because I am a true believer in the transatlantic relationship,' Šefčovič said. President Donald Trump frequently complains that the EU's 10 percent tariff on passenger cars is much higher than the United States' own 2.5 percent tariff. That's one reason he is threatening to impose 'reciprocal tariffs' on the EU as part of a broader U.S. action aimed at raising tariffs on countries around the world. Trump has also threatened additional tariffs on certain sectors such as autos, semiconductors and pharmaceuticals that could separately hit the EU. Šefčovič tried to counter Trump's complaints Wednesday, arguing the EU is a largely open market, with average tariff rates on industrial goods that are about the same as the United States'. He also noted there are 'peak' tariffs on both sides of the Atlantic, including the 25 percent tariff that the United States imposes on pickup trucks, which he suggested should be part of any tariff negotiations. The former Slovak diplomat also noted that while Trump focuses on the U.S. trade deficit in goods with the EU, which totaled $235.6 billion in 2024, the United States runs a trade surplus in services with the EU. When goods and services are combined, the U.S. trade deficit with the EU is only about $50 billion, which equals about 3 percent of $1.7 trillion in annual transatlantic trade. At the same time, Šefčovič vowed to retaliate if Trump makes good on his threats to impose sweeping tariffs. 'To protect European interests, we will have no choice but to respond firmly and strictly but we do hope to avoid the scenario,' Šefčovič said. 'That is why I'm here this week.' Meetings this week: Šefčovič said he planned to underscore the benefits of strong trade for businesses on both sides of the Atlantic when he meets with senior U.S officials. He is meeting Wednesday afternoon with Commerce Secretary Howard Lutnick, U.S. Trade Representative-nominee Jamieson Greer and Kevin Hassett, director of Trump's National Economic Council. Šefčovič is also expected to meet with Sens. Mike Crapo (R-Idaho), chair of the Senate Finance Committee; and committee member Michael Bennet (D-Colo.). 'The EU sees no justification for sudden unilateral tariff increases by the U.S. Our businesses rely on economic stability, predictability and certainty on both sides of the Atlantic,' he said, adding he hoped to come away from the meeting on Wednesday with a clearer idea of what the Trump administration would like to discuss. Tech regulation defense: Šefčovič said Brussels was willing to talk about 'Big Tech' issues with the U.S. but indicated the EU would strongly defend its regulations, including measures such as the Digital Services Act and the Digital Markets Act. 'The Big Tech companies from U.S., most of them have more clients in Europe than in U.S. And if you look at the revenue, so it's between 30 [percent] to 50 [percent] of the revenue is generated in in the European Union,' Šefčovič said. He also asserted the EU's tech rules 'really do not have a discriminatory nature,' despite complaints from the United States. In addition, the EU's work to impose a 'digital services tax' was done in coordination with the U.S. to create a global system, he said. However, Trump has put the EU and other countries on notice that he does not feel bound by the commitments the Biden administration made in international tax negotiations that took place under the auspices of the Paris-based Organization for Economic Cooperation and Development. Trump's nominee to be U.S. trade representative, Jamieson Greer, also recently told Congress that he was prepared to defend American tech companies against foreign regulation by threatening tariffs if necessary. 'If anybody's regulating our digital companies, it's going to be us,' Greer said. On the WTO: Šefčovič also called the World Trade Organization 'very important' in his remarks, but added that the international body 'has to adjust' to the 21st century, and account for new discussions including those around digital services. 'What needs to be also very clearly addressed, is that the WTO mechanism is used by non-market economies,' he added, in a likely reference to countries like China that have powerful state-backed industries. 'For this, I think it will be much better, much stronger, if we can do it together with the United States.'
