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Topic: Snyder gives raises, pays Dillon, bumps cost of government

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untanglingwebs
El Supremo

Susan J. Demas: Gov. Rick Snyder wastes tax dollars keeping Andy Dillon on payroll

Gov. Rick Snyder claims to be fiscally conservative, but he's still paying Treasurer Andy Dillon his full salary months after his resignation. (Fritz Klug | MLive.com)

Susan J. Demas | Political columnist for MLive.com By Susan J. Demas | Political columnist for MLive.com
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on January 10, 2014 at 6:05 AM, updated January 10, 2014 at 9:10 AM


Rick Snyder has cast himself as "One Tough Nerd," the clear-eyed CPA who's up to the job of getting Michigan's fiscal house in order.

Over the past three years, the state CEO has made fiscal conservatives swoon with his agenda of cutting business taxes, the budget, unemployment benefits, workers compensation, public employee benefits and regulations (even if he has hiked individual taxes).

But Snyder has followed the mantra of running government like a business in another area -- inflated executive salaries.

And that apparently goes for those who have resigned, like former state Treasurer Andy Dillon, who announced his departure in October after public battles with alcohol and his ex-wife. But the Detroit Free Press reports the state is still paying Dillion at his $174,204 annual rate for "consulting."

That's something taxpayers had the right to know months ago.

Bill Ballenger, associate editor for Inside Michigan Politics, tells the Detroit News that the Snyder administration has bought itself a headache.


"For the one who’s been controversial to seek or be given a salary months after he’s left, to me, seems a little like playing with fire," he said. "If it was anybody but Dillon, it probably wouldn’t be so politically titillating."

One of the worst aspects of modern corporate America is the routine practice of doling out outlandish golden parachutes to even the most incompetent CEOs, something even the Wall Street Journal admits takes place.

It's the height of arrogance.

While it's true that Dillon isn't receiving millions, Snyder is still keeping him on the public payroll at a salary that's more than three times the median annual income in Michigan. And that follows a troubling pattern in corporate America.


Carly Fiorina helped Hewlett-Packard's value nosedive and was there for mass layoffs, but she walked away in 2005 with about $40 million. Voters didn't buy the Republican's fiscal responsibility shtick in 2010 and she lost her California U.S. Senate bid.

Stephen Elop is likely to walk away from Nokia Oyj with $25 million and a job at Microsoft, even though the company's shares plummeted one-third since he became CEO.

Nice work if you can get it.


The Detroit News also reports big pay hikes for Michigan Treasury officials still on the job, like a 90-percent bump for Chief Investment Officer Jon Braeutigam from $175,074 to $333,000. Senior investment directors Robert Brackenbury and Gregory Parker saw 81-percent raises, going from $128,710 to $233,000.


Now that's not Fiorina and Elop money. But that still places Braeutigam in the top 1 percent of income earners, while Brackenbury and Parker reside in the top 2 percent.

At the same time, thousands of public employees have been forced to pay more for health care and take $145 million in concessions in 2010.


Rick Snyder is up for re-election this year and is certain to run on a record of fiscal conservatism. It's time for him to fully practice what he preaches.


Susan J. Demas is Publisher and Editor of Inside Michigan Politics, a nationally acclaimed, biweekly political newsletter. She can be reached at susan@sjdemas.com. Follow her on Twitter here.
Post Sun Jan 12, 2014 6:04 am 
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untanglingwebs
El Supremo

Don't forget that the state now pays the salary and expenses of the Emergency Managers. With more cities and even townships on the verge of emergency management, this will well exceed a million dollars.
Post Sun Jan 12, 2014 6:58 am 
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