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Posted on Tue, Oct 26, 2010 : 6:05 a.m.

Virg Bernero tells EMU crowd he won't bend to union demands as Michigan's next governor

By Ryan J. Stanton

Virg_Bernero_Oct_25_2010.jpg

Democratic gubernatorial candidate Virg Bernero addresses a crowd of about 140 gathered at the Eastern Michigan University Student Center Monday night.

Ryan J. Stanton | AnnArbor.com

Democrat Virg Bernero told an Eastern Michigan University audience Monday night that education will be among his top priorities if elected governor.

"I'm not here to say, 'Elect me and it'll all be peaches and cream,' but I am here to tell you these are my priorities: education, public safety, economic development — meaning jobs," Bernero told a crowd of about 140 gathered inside EMU's Student Center.

"I want to live in a Michigan where there's opportunity for everybody, so that, when you look down, those rungs on the ladder are there, strong and intact — so that if people care to climb up, they can," he said. "And what are those rungs on the ladder? They're education, they're health care, they're that first job. They're an affordable education here at Eastern."

Monday's event, titled "Education: Invest Now or Pay Later — The Pathway to Economic Stability," was sponsored by the Ministers Alliance of Ypsilanti, Ann Arbor and Vicinity.

Both the Democratic and Republican candidates for governor were invited to the event, but Rick Snyder opted not to attend, organizers said.

Partway into the 40-minute question-and-answer session that followed Bernero's speech, a student in the audience posed a tough question. Knowing Bernero has been endorsed by labor groups like the Michigan Education Association and the American Federation of Teachers, how could he possibly be tough on unions when it's time to make cuts?

Past is prologue, Bernero said, pointing to his five-year record as mayor of Lansing. He said he ran for office with endorsements from several unions, including the Fraternal Order of Police, the Teamsters, the UAW, and the firefighters union.

"They all endorsed me," he said.

And then tough times fell on Lansing, and concessions were needed. Bernero said he went to the unions and said, "Here's the problem, and I need you to give on some things. I need you to cut vacation time. I need you to cut some of your benefits."

"And of course, they weren't happy about it," he said. "But they did it, and they accepted it. They knew there were either going to have to be concessions or layoffs. They also knew that I was sharing the pain, that I wasn't just asking them."

While other unions worked with him, Bernero said, the FOP called his bluff.

"They basically said, 'You ran on public safety and we dare you to do anything different,'" he said. "And I said, 'Well, if you don't accept some concessions, you're going to force me to issue layoffs.' And they basically said, 'Well, we don't think you'll do that.'"

A few weeks before Christmas last year, Bernero said, he had to issue pink slips to 14 Lansing police officers, and it pained him greatly.

Bernero, who has been pegged by some as being in the pockets of labor unions, told the student who asked him the question Monday night, "sometimes leadership requires you to do that." In this case, he said, the FOP came back to the negotiating table two days later.

"And I ended up not having to lay anybody off," he said. "So I can say today that not only did I not lose a single firefighter or a single police officer, but I have more police on the streets today than when I first took office. Now, since that time, the FOP has not endorsed me. They endorsed Andy Dillon and they endorsed Rick Snyder in this election."

Bernero said he'd be willing to make the same kinds of tough decisions as Michigan's governor. He said his only promise to any unions is that he'll work with them, not against them, to overcome whatever challenges may come the state's way.

"My approach is to try to work with everybody," he said. "So it's to call in the workers and say, 'Look, here's the problem. This is the reality of the budget. Let's attack the budget, the problem, and not attack each other. Let's try to come up with creative solutions.'"

U.S. Rep. John Dingell, D-Dearborn, gave brief opening remarks before Bernero spoke Monday night. The veteran congressman said the nation is beginning to come out of one of the darkest recessions since the 1929 depression, and President Barack Obama and the Congress have made historic steps forward in making college more affordable and more accessible.

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U.S. Rep. John Dingell, D-Dearborn, addresses the crowd Monday night inside the EMU Student Center.

Ryan J. Stanton | AnnArbor.com

"Together, the Congress and the president have increased Pell Grant awards to an all-time high, increasing it to $5,550 in 2010," Dingell said, adding that starting in 2013, the Pell Grant program will be indexed with inflation to keep pace with rising costs. "This increase will benefit more than 332,000 students in our state of Michigan."

Dingell said Congress also has acted to lower monthly payments on federal student loans and put measures in place to make certain that new graduates can manage their debt.

"We have passed the educational job funds bill, which provided $316 million to Michigan, keeping more than 4,700 of our teachers in the classroom that were scheduled to be let go because of the economic situation in Michigan," he added. "Unlike some other folks, the Democrats have kept our commitment to our students, improving our educational system."

Dingell said "if anybody has any doubts about Mayor Bernero's understanding of what we need for our educational system," he would remind them Bernero's wife Teri is "an extraordinarily successful elementary school principal" in Lansing.

"Education is a frequent topic of discussion in our house," Bernero acknowledged. "And we believe that every child in Michigan must have a top-quality public education, which includes all-day kindergarten, which includes a state-approved curriculum that has music, art and PE with it for every child, not simply dependent on what neighborhood they come from."

Bernero also said the state needs to make education for children ages 0 to 5 a "much higher priority" than it is now.

"And look, we've got to face up to the fact that our system for funding education needs to be updated," he said, suggesting Proposal A, which changed the funding system for public schools in 1994, has outlived its usefulness and needs to be reexamined.

"It will be tough," he said. "But that's one of the first things I'm going to do is to appoint a task force and get the best minds in education and finance in our community, including the university level, and really design the school funding system for the next 10 or 20 years."

Bernero touched on other parts of his plan to turn around Michigan's economy, including his proposal for a "state bank" modeled after one set up in North Dakota. He said the No. 1 problem Michigan's next governor must address is not taxes, but the credit crunch that is keeping businesses from growing and creating jobs.

"They can't get access to capital because Wall Street will not lend in Michigan," Bernero said. "Generally, Wall Street has redlined Michigan. They take our money, but they invest it elsewhere. So I have a proposal to create a Main Street bank, like they've done in North Dakota, and it's essentially us pooling our resources and investing in ourselves."

While that may take time to set up, Bernero said there's something the next governor can do right away: Take back $1 billion the state has invested in JPMorgan Chase.

"JPMorgan Chase is a bank that's doing all sorts of dastardly things here in Michigan," he said. "They're foreclosing on people without much consideration at all in terms of home mortgages. They generally won't lend to small businesses in Michigan. They've sort of redlined us. But we have $1 billion invested in JPMorgan Chase in a demand deposit account."

The day after he's sworn in, Bernero said, "I'm going to get that $1 billion that's at JPMorgan Chase and put it back in community banks and community credit unions here in Michigan, so that we can get our economy moving immediately."

Bernero talked about another of his proposals, "Make It In Michigan For Free," which he said would essentially offer an incentive of zero taxes for up to 12 years for companies wishing to set up advanced manufacturing facilities in distressed urban areas in Michigan.

"What 'Make It In Michigan For Free' says in a nutshell is, if you take an old abandoned property and you turn it into something good — you fix it up, you bring jobs — you won't pay taxes for 12 years," he said. "No property tax, no business tax, no personal property tax. That's something we can go out and market and get businesses to take another look at Michigan."

Bernero made a name for himself nationally two years ago while fighting for federal bridge loans for the U.S. auto industry. An audience member Monday night asked him where he stands policy-wise on mass transit and moving Michigan away from reliance on automobiles.

"I'm not going to lie to you, it's going to be tough to do a lot of real sexy stuff with light rail and trains and stuff, unless there's big federal dollars," Bernero said. "Or unless people vote to put money up. I mean, I think an Ann Arbor-to-Detroit train would be outstanding, so I would certainly, as governor, work with Ann Arbor and Detroit and communities in between and try to be creative and try to get the administration in Washington. I just can't promise right now, given the state of the budget, a lot of state money for that. Right now I've got to focus on, frankly, effective regional bus transportation … especially in the Detroit area."

Ryan J. Stanton covers government and politics for AnnArbor.com. Reach him at ryanstanton@annarbor.com or 734-623-2529.

Comments

InsideTheHall

Wed, Oct 27, 2010 : 3:08 p.m.

Speechless - I bet you aced Marxist Economics with flying colors.

Do not taunt Happy Fun Ball

Wed, Oct 27, 2010 : 7:09 a.m.

I Know! - Let's raise taxes by 3-4% that will get employers hiring again! We could also pass Green laws that will force companies (those still in Michigan) to force hiring green jobs - that should solve the 13%+ unemployment issue MI has. Or like Chavez in Venezuela - "send troops to two factories owned by U.S.-based glass container manufacturer Owens Illinois on Tuesday after President Hugo Chavez nationalized its operations." Thanks Virgo, I mean Hugo!

Ray D. Aider

Wed, Oct 27, 2010 : 12:10 a.m.

Unions = Special Interests. Special interests have ruined this State. I say this as a retired union member...but what was I to do? Quit? I simply know that it's the truth....they always want more and drive the cost of everything they deal with UP! Look at Europe if you want to see the results of Entitlement Mentality.

snapshot

Tue, Oct 26, 2010 : 11:38 p.m.

He talks a good game but he's been part of the "problem" for 20 years. Unions are way too powerful. If they were a corporation they would be broken up due to anti trust and monopoly laws. That we actually have "public" employee unions defies common sense. Look what's happening in France. A union strike that can prohibit public funding projects, sevices, or in any way prevents private business from functioning should be illegal. And these people call themselves "public servants". The FOP probably has a lawsuit going tying up the court to get whatever they gave up, back again, just like the teachers union is doing to get their added 3% contribution to healthcare costs back that the legislature mandated. I'm waiting for superman....in the meantime I'm paying more attention to judges than politicians.

Macabre Sunset

Tue, Oct 26, 2010 : 8:30 p.m.

So his answer is to shut down JP Morgan, which employs a lot of Michigan residents, and give that business to a new state-run bank - thus expanding the role of government and converting private-sector jobs to cushy spoon-fed government union jobs? No thanks. That's exactly how Michigan can continue its one-state depression. Normally I have a tough time figuring out my vote, because I belong to neither party. This one's a no-brainer, though.

DonBee

Tue, Oct 26, 2010 : 6:41 p.m.

@Veracity - Your right they were not laid off, but they disappeared from the payroll. Check the last 3 Lansing City Reports. It will take time, they are not transparent, but if I can find the head count reduction, you can too.

Mick52

Tue, Oct 26, 2010 : 5:39 p.m.

I am with you PaperTiger. A lot of mud slinging but very little info on how we are going to get out of this mess we are in. I suspect it is because they do not really know what to do, or more likely know that what they will have to propose is not going to go over well so they will wait until after the election to drop the bomb.

Lance

Tue, Oct 26, 2010 : 5:37 p.m.

I asked this question because in his debate on Oct. 11 he stated that he would "stand up to unions," as he has done before. He does have the backing of most/all unions in the state so there a distinct paradox there. He can't really answer without giving up on the other side of his campaign.

Speechless

Tue, Oct 26, 2010 : 5:35 p.m.

At this point, it looks unlikely Virg Bernero can win or even come close. And hence the state will continue its backward march, almost unimpeded, to the feudal capitalism of the robber baron era. Given that mere Hooverism is too far 'left' for many Republicans these days, we're now heading all the way back to the time of Gould. Fisk and Rockefeller. Snyder is more moderate than that, but not equipped politically or ideologically to rein in his own party. As for the fate of those who must, unlike the barons of investment, work for a living, Marie Antoinette herself might well have said, "Let them drink tea." The creation of a state-run bank is quite important, for the reasons given by Bernero in his EMU talk. The public needs to take the banksters out of the investment equation as much as possible. A state bank will care far more about investment in Michigan than utra-rich jerks who lord over Wall Street.

PaperTigerSaline

Tue, Oct 26, 2010 : 3:36 p.m.

We really don't need to be "blown away" with another career politician. I am so sick of all of the political ads, i.e., he said/she said. I don't care WHAT the other person DID or DID NOT do. I want to know what plan they have for Michigan. Quit wasting your time cutting down the other guy and just ignore the other guy. Tell us what YOU will do. Remember you can't do it all yourself, as the legislature plays a BIG part in what you are able to do or to NOT do. GO RICK SNYDER. PS - I bet "Virg" is computer illiterate, anyway.

Veracity

Tue, Oct 26, 2010 : 3:25 p.m.

So "anyone else" is better than Virg Bernero who balanced five Lansing budgets without raising taxes or layoffs. (That's right, those 14 policemen were not laid off as is believed by one commenter who failed to read the entire article). I guess the $340 million dollars of federal money that Virg Bernero squeezed out of the federal government for jobs is meaningless as well. Some voters believe that Michigan can not get worse by electing "anyone else." Well, Rick Snyder, the "anyone else" candidate, may get the opportunity as governor to dig an even deeper financial hole for Michigan. Jobs for our more than 640,000 unemployed will not magically appear when the Michigan Business Tax (MBT) disappears and the only effect that firing 5,000 state employees will have is to swell the ranks of the unemployed to over 645,000.

michigan face

Tue, Oct 26, 2010 : 2:24 p.m.

Rick has no "business" running for governor. With greed and power comes the drive for more greed and more power. Vote Virg!

Ram

Tue, Oct 26, 2010 : 2:05 p.m.

Ignatz: So because you doubt something, its not true?

DonBee

Tue, Oct 26, 2010 : 1:45 p.m.

@The German He may not have laid them off, but look at the last 3 Lansing City reports on the Lansing website. There are 14 fewer police and 10,000 fewer reports filed by the department. (-:

michigan face

Tue, Oct 26, 2010 : 1:38 p.m.

Vote Virg - "man up"......

Captain Awesome

Tue, Oct 26, 2010 : 1:22 p.m.

The last thing Michigan needs is to be "blown away" for another 4 years by a Grandholm cronnie.

Sam

Tue, Oct 26, 2010 : 11:48 a.m.

Yeah right...not bow to the unions that are financing his entire campaign. Oh and with public money like ASFME, UAW, and MEA. Enough of these people. He, Ms. Granholm, and Ms. Pelosi can take their socialist ways and try the private sector for awhile. Not one of them could hold a real job in the real world.

cinnabar7071

Tue, Oct 26, 2010 : 11:20 a.m.

"It is the billions they don't pay that creates some of the inequity in our system." Oh my, now thats a liberal statement if I've ever heard one

Ignatz

Tue, Oct 26, 2010 : 11:18 a.m.

"Bankers pay millions in taxes..." First of all, I doubt that very much. They'e very adept at hiding money and/or using the tax codes to avoid paying. Secondly, even if they were paying all this money to our government, why would they pay so much. The reason is because they make so much. What do they do for these outrageous saleries? Push paper around. I find little value in that. They're like vampires. The best way to rob a bank is to own one.

TheGerman

Tue, Oct 26, 2010 : 11:08 a.m.

@DonBee: I like how you put Read, Think and then Vote, when you yourself can't read. "And I ended up not having to lay anybody off," he said. "So I can say today that not only did I not lose a single firefighter or a single police officer, but I have more police on the streets today than when I first took office. Now, since that time, the FOP has not endorsed me. They endorsed Andy Dillon and they endorsed Rick Snyder in this election."

PaperTigerSaline

Tue, Oct 26, 2010 : 10:59 a.m.

Great, Virg. That's just what we need - a train that comes to Ann Arbor from Detroit, so that we can have all of the problems with crime that Detroit has. Give the criminals from Detroit an easy ride to Ann Arbor. Why don't you just give up now, and concede that you've lost. GO RICK SNYDER.

David Briegel

Tue, Oct 26, 2010 : 10:33 a.m.

Baggins, The banksters take the deposits of all the honest citizens of our nation, take it to their casinos and gamble with it. They are so far removed from the local bankers they don't even know what is going on locally. Every group of people in the mortgage chain got paid their fees and commissions, blessed them as good, and the banksters bought and packaged the paper, had their rating agencies rate them AAA or better and sold it to Saudis, Chinese, and pension fund mgrs. Of course, they had no idea?? Right!? ignatz, the fees that everyone made at every step of the way is clearly the reason. Yes they pay millions in taxes. It is the billions they don't pay that creates some of the inequity in our system. A mailbox in a third world nation to avoid taxes or investing the money from honest Americans in China and third world nations are their way of supporting the principles of American capitalism. Again, if Bennie the Bookie and Louis the Loanshark were minorities our prisons would overflow!

care2comment

Tue, Oct 26, 2010 : 10:08 a.m.

Funny how Democrats talk and campaign like conservatives, knowing that our country is conservative-leaning. Once in office, it's the same old thing: tax and spend and waste our money... and favors to the unions. ( think Barack Obama, anyone?) If you like the trajectory that Michigan is on, vote for Bernero and Dingell. We need a new direction here in Michigan. Go for Snyder and Steele!

Ignatz

Tue, Oct 26, 2010 : 10:05 a.m.

@T. Baggins: If the bankers are so hard working, why don't they work smarter? Why would you lend money to someone who you SHOULD know does not have the ability to pay back the loan? The answer: Because they know the goverment will come to their rescue with a bailout. After all, they gave the politicians millions to pass laws favorable to them and not the average American consumer. As an aside, I bet the bankers did the opposite of dissuading those future owners from borrowwing "too much". I weep not for bankers and their ilk.

Ace Ventura

Tue, Oct 26, 2010 : 8:59 a.m.

The day after he's sworn in, Bernero said, "I'm going to get that $1 billion that's at JPMorgan Chase and put it back in community banks and community credit unions here in Michigan, so that we can get our economy moving immediately." ROTFLOL!!!!!!!!!

xmo

Tue, Oct 26, 2010 : 8:56 a.m.

I think people understand what message the Democrats are trying to send to us and that's why they had such a big crowd (140).

DonBee

Tue, Oct 26, 2010 : 8:19 a.m.

When I want through the Lansing Annual reports, I wondered why the number of police reports was down 10,000 in the last year. 14 fewer officers may have something to do with it. He said he balanced the budget with no reduction in services in several primary speeches. He gave the Zoo to the county (following Detroit's lead) and cut police by 14 with layoffs and there are other reductions. Then there are fee increases for using ambulances, and other cities services - note these are not tax increases, just fee increases. Read, think, and then vote. Be an informed voter.

braggslaw

Tue, Oct 26, 2010 : 8:13 a.m.

It doesn't matter what he says... he has no chance of winning.

David Briegel

Tue, Oct 26, 2010 : 8:08 a.m.

ignatz, the feudalists are all here. So predictable. They all think that they will get to be Lord! The American sense of fair play is sitting next to that trickle down in the mythology of Conservatism! And they all support the banksters. If the banksters were workers or heaven forbid, minorities, these same people would be demanding prison for the fraud perpetrated! Not these noble souls.

L'chaim

Tue, Oct 26, 2010 : 7:52 a.m.

Well, that's not saying much considering the official union leaderships won't dare ask him to bend, much less represent workers in any meaningful way. Workers on the other hand, will simply have to break him if he won't bend. Or whichever tweedle-dumpling gets elected.

Ignatz

Tue, Oct 26, 2010 : 7:29 a.m.

Again I see the anti-union reactionaries in here. Why don't people want the workers to be on a more even playing field with management/owners? This isn't medievel Europe of Czarist Russia! What happened to the American sense of fair play or is that just another myth?

Top Cat

Tue, Oct 26, 2010 : 7:01 a.m.

Yes and my cat has promised me that he will stop catching chipmunks.

cinnabar7071

Tue, Oct 26, 2010 : 6:54 a.m.

I don't know about everybody else but I'm sick of being lied too!

Milton Shift

Tue, Oct 26, 2010 : 6:50 a.m.

Zero taxes for 12 years for corporations moving here... the race to the bottom continues.

Somewhat Concerned

Tue, Oct 26, 2010 : 6:36 a.m.

Not exactly what he tells the guys in the union halls when he is collecting campaign funds from the union bosses. Typical career politician. He should be Governor of New Jersey.

InsideTheHall

Tue, Oct 26, 2010 : 6:31 a.m.

Strip away the Bernero and Dingell posses and about 60 people were in attendance. Same ol song the DEMS are singing, government will set you free. Bernero & Dingell remain fixated on those evil greedy Wall Street Banks. Perhaps they should ring Obama so he can get Tim Geithner (Former WALL STREET greed banker)top Obama henchman to lighten up.

JPLewis

Tue, Oct 26, 2010 : 5:50 a.m.

"Virg Bernero tells EMU crowd he won't bend to union demands as Michigan's next governor" But he's a Democrat....Oh never mind.