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I'm uncomfortable with the assumptive leap being taken that the city is blowing it's police budget on graft and waste. I have seen no evidence of this and feel this assumption is outside the scope of the discussion anyway.
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The motivation for the militia's threat to begin operations is the city's threat to lay off law enforcement personnel when they're running one of the most dangerous cities in the country. How the city manages it's revenues is clearly germane to the discussion.
BTW, I looked at their budget and IMO, there is spending that's inappropriate, given the circumstances.