budget deficit

Education
4:47 pm
Fri June 20, 2014

Detroit Public Schools release budget proposal for next year

Credit DPS website

For the first time in six years the Detroit Public Schools' proposed budget does not call for any schools to be closed. 

The district expects it will bring in about $50 million fewer than it planned for next year. But officials say despite that, they are planning new programs and won't close any schools. 

The idea is to keep the city's schools competitive with charters and suburban districts. 

But there is still the matter of a $127 million deficit the Detroit school district is battling. 

Read more
Opinion
9:34 am
Mon October 14, 2013

Staring at default

Lessenberry commentary for 10/14/13

Many years ago, when I studied economics, I learned that every so often, Congress has to authorize an increase in how much money the nation could borrow, meaning the national debt.

One student asked what would happen if Congress didn’t authorize a debt increase. “Something that would make the Great Depression look like a picnic,” the professor said.

He explained that the world financial system was built on the soundness of the American dollar, and the global belief that our debts, like U.S. savings bonds and the $20 bill, were backed by the “full faith and credit” of the United States of America. He also told us that the odds of this nation ever defaulting were less than a nuclear war.

Well, that professor is dead and the Cold War long over. But for the first time, there seems a real possibility that we could, at least temporarily, go into default. We aren’t talking about Detroit here, but the United States of America.

Read more
Politics & Government
6:45 am
Mon July 22, 2013

In this morning's news: Detroit bankruptcy, Flint school district deficit, St. Petersburg, Russia

Morning News Roundup for Monday, July 22, 2013
User: Brother O'Mara flickr

Detroit bankruptcy is topic of national conversation

Snyder, Detroit's emergency manager Kevyn Orr and Detroit Mayor Dave Bing appeared on Sunday morning talk shows yesterday to talk about filing bankruptcy for Detroit. Snyder said he will push to protect the retired city workers whose pensions are on the table. He said the bankruptcy filing included protections for retirees and urged them to remain calm. Orr said on "Fox News Sunday" that there are going to have to be "concessions." Bing on ABC's "This Week" said now that bankruptcy has been filed, leaders have to take a step back before making a decision on a federal bailout.

Flint school district faces more budget cuts

The Flint School Board will take up a Deficit Elimination Plan tomorrow night. The district is wrestling with a nearly 16 million dollar deficit. The Flint school district has made deep budget cuts but more cuts are likely if the district follows the plan to eliminate its deficit by June 2016. The Flint School Board has until July 31st to send its deficit elimination plan to the state.  

Lansing may end its relationship with St. Petersburg, Russia

The Lansing city council will be meeting tonight to discuss its sister city relationship with St. Petersburg, Russia. St. Petersburg recently passed an anti-gay ordinance and police there arrested people at an LGBT rally. Members say they want to send a message to St. Petersburg officials by canceling Lansing’s two decade sister cities relationship with the city.

Education
5:15 pm
Thu June 6, 2013

More Michigan schools running deficits, record 55 with deficits

A meeting of the Buena Vista School Board.
Sarah Alvarez Michigan Radio

To add to the woes of public education in Michigan, six new school districts are running deficits.

Forty-nine was the record, now make it 55 school districts – from the Traverse Bay Area to Wayne County – with deficits.

More from MPRN's Rick Pluta:

State Superintendent Mike Flanagan says declining enrollment is the most-common issue in the deficit districts. That’s led to a loss of state funding.

Flanagan says schools do need more resources, but most are keeping their budgets balanced. The ones that don’t, he says, are a rarity.

Read more
Politics & Government
9:14 am
Mon May 13, 2013

In this morning's news: the state of Detroit, school closings, and a teacher performance bill

Morning News Roundup, Thursday, Oct. 13, 2011
User: Brother O'Mara Flickr

Detroit is worse off than we thought

"Detroit's state-appointed emergency manager is painting a bleak financial picture. Kevyn Orr's first report says Detroit's net cash position was negative $162 million as of April 26 and that the projected budget deficit is expected to reach $386 million in less than two months. That's more than the city's estimate" reports the Associated Press.

Pontiac schools might be saved; no such luck for Buena Vista

The state is expected to release a payment as soon as today that will keep the Pontiac school district from declaring bankruptcy according to a letter sent to the district last week by the state Department of Education.

"There is still no plan to get 400 kids in the Buena Vista district back to school. Buena Vista closed its doors abruptly after losing a monthly payment because the district owes the state money. " Michigan Radio's Rick Pluta reports.

A new bill would reward teacher performance

"Michigan teachers' performance in the classroom would play a bigger role in the amount they get in their paychecks under a proposal being debated in the state House. Supporters argue that rewarding teachers who perform better and moving away from a system that rewards seniority will improve teachers and benefit students" reports the Associated Press.

Politics & Government
2:17 pm
Sun February 17, 2013

Flint mayor will use 'State of the City' address to look to a future without an emergency manager

Flint, Michigan Mayor Dayne Walling (file photo)
Steve Carmody/Michigan Radio

Flint’s mayor delivers his State of the City address tomorrow.

He says he’ll map out a path for Flint to no longer need an emergency financial manager running his city.

Mayor Dayne Walling says now’s the time to begin preparing for life after an emergency manager.

The city has been under the direction of a state appointed manager since December of 2011.

The new emergency manager law that takes effect next month includes a provision that details how cities can get back to self-control.

Read more
Politics & Government
3:29 pm
Wed February 6, 2013

Flint outsourcing trash collection

24 Flint city workers are losing their jobs as the city outsources trash collection in the city
Steve Carmody/Michigan Radio

A private company will start picking up Flint’s residential trash next month.

Emergency Financial Manager Ed Kurtz says Republic Services can handle Flint’s waste collection for a million dollars a year less than the city can itself.    The two sides signed a contract this week. 

Read more
Politics & Government
4:35 pm
Fri October 5, 2012

Lansing mayor announces $11 million deficit for next fiscal year

Lansing city hall.
MI SHPO flickr

The city of Lansing faces an $11 million budget deficit in the coming fiscal year.

City officials say the shortfall is due largely to a steep decline in property tax revenues. Rising pension, health care, and salaries are also to blame. The numbers take into account the extra money the city is taking in from a new tax levy voters approved a year ago, but the city has almost reached its constitutional limit on how much money it can raise in new taxes.  In a press release, Mayor Virg Bernero says the funding model for Michigan cities is "broken." 

Read more
Politics & Government
12:25 pm
Wed June 20, 2012

State wants to see Wayne Co. books before okaying deficit plan

State Treasurer Andy Dillon
Associated Press

Before giving Wayne County the go-ahead on an unorthodox deficit reduction plan, the state wants peruse the county's books.

According to John Wisely at the Detroit Free Press, Michigan Treasurer Andy Dillon is taking bids from accounting firms to perform the audit. Auditors would look at discrepancies in spending and budgeting along with the timing of certain transactions.

Officials in Lansing are on the lookout for anything fishy because the plan would involve state money.

More from the Freep:

Last month, the county proposed eliminating its deficit by sending unused state grant money, for things like roads and mental health programs, back to the state. It wants the state to return a similar amount to the county unrestricted, meaning it could be used to eliminate the deficit instead of funding the programs spelled out in the legislation.

Wayne County has a cumulative deficit of $155 million and faces declining revenues in its latest budget cycle.

-John Klein Wilson, Michigan Radio Newsroom

Flint
12:24 am
Tue May 1, 2012

Critics lash out at Flint's emergency manager

One of the many angry Flint residents who turned out for last night's public meeting on the budget plan the city's emergency manager imposed last week
(photo by Steve Carmody/Michigan Radio)

Flint’s emergency manager got an earful during a public meeting last night on the budget he imposed on the city last week.

Emergency manager Michael Brown had planned to take the first half hour of a 90 minute public meeting to review his budget plan and then allow an hour for questions.

But the budget presentation had barely started, when several people in the nearly full auditorium jumped to their feet to shout down the emergency manager.

After the outburst, a parade of people took turns at the podium denouncing emergency manager Michael Brown, the law that put him in charge of Flint and the budget he introduced and imposed last week. That budget cuts the city’s workforce by about 20 percent and imposes hundreds of dollars in new fees for city water, street light and other city services.

Flint resident Carolyn Shannon questioned the expertise behind the decision to make deep cuts to the city’s police and fire departments.  

“Even a person off the street…can cut somebody’s throat," scolded Shannon.

One man, identified only as Maurice, glared at Brown as he talked about how he can’t afford to pay any more taxes.

"You want to take more from me and my daughter?" the man asked, "You ain’t no different than these people that are out here murdering our own children."  

Brown insists the budget cuts and fee increases are needed to address Flint’s  projected $25 million gap next year. That's not Flint's only financial problem. The city is also seeking the state's OK to sell more than $18 million in loans to pay off the city debts from the past few budget years.

Education
5:02 pm
Fri April 20, 2012

Madison Heights teachers get 10% retroactive pay cut, may sue district

user kconnors morgueFile

A public school district in Oakland County imposed a ten percent pay cut on its teachers retroactive to the start of the school year.

Now it is likely the teachers will sue the district.

Teachers in the Madison Heights school district have been working without a contract for three years. In that time there’s been lots of bargaining, a fact finding mission, mediation - but to no avail.

Read more
Education
4:31 pm
Thu April 19, 2012

Ann Arbor schools face $17.8 million budget deficit

user jdurham morgueFile

Michigan school districts are struggling with growing budget deficits. Even relatively wealthy districts are facing unprecedented cuts.

The Ann Arbor Public School district faces a $17.8 million deficit. The district's budget for the 2011-12 school year is $183 million. 

Deputy Superintendent of Operations Robert Allen met with the district's Board of Education on Wednesday, where he laid out three possible plans to deal with the deficit in Ann Arbor – each one progressively more severe. 

All three proposals include:

  • teacher layoffs: Plan A: 32 teachers; Plan B: 48 teachers; Plan C: 64 teachers
  • closing Roberto Clemente, one of two alternative high schools in the district
  • cuts to transportation*

*Plan C calls for getting rid of high school bus routes entirely.

Ann Arbor School Board president Deb Mexicotte says the cuts are "reaching the bone," and "if you keep cutting, you’re going to reach the place where you can no longer maintain what you do well."

Mexicotte blames the state for what she says its chronic under-funding of education:

"This is not the story of our smallest districts or our districts that have struggled because of their tax revenue package. We’re talking about districts that people generally think are insulated from these kinds of things." She adds, "we’re all in this together."

Read more
Flint
10:29 am
Mon February 13, 2012

Flint city council to meet with emergency manager this evening

It's been a few months since opponents of Michigan's emergency manager law planted this lawn sign in front of Flint's municipal building. Tonight, EM Michael Brown will talk about what he's been doing.
(photo by Steve Carmody/Michigan Radio)

The Flint city council tonight will do something it hasn’t done in a while.  Actually meet.   

One of the first things Flint’s emergency manager did after he took over city hall last December was to suspend the pay for city council members.  He also canceled council meetings.

He later reinstated some of their pay and he directed the city council members to meet with their constituents.

Read more
Detroit
11:53 am
Fri November 18, 2011

Mayor Bing: 1,000 job cuts amid budget crisis

Detroit Mayor Dave Bing says 1,000 job cuts are planned by early next year to help deal with the city's budget crisis.

The mayor's office said in a statement Friday that layoff notices will be delivered the week of Dec. 5. He says the cuts represent 9 percent of the city's about 11,000 employees and will save about $12 million.

On Wednesday, Bing said the city faces a $45 million cash shortfall by the end of its fiscal year in June.

Bing said the positions will be eliminated by Feb. 25. He said additional 2,000 positions have been eliminated since he took office in 2009.

Bing also ordered an immediate hiring freeze for all civil service positions except the Detroit Water and Sewerage Department.

Economy
5:18 pm
Tue September 27, 2011

Postal workers hold rallies across the state

Dozens of postal workers rally in downtown Lansing
(photo by Steve Carmody/Michigan Radio)

 Postal workers delivered a message at more than a dozen rallies across Michigan today.   

Postal workers say they have a solution to the multi-billion dollar budget deficit that is threatening the future of the U.S. Post Office.  Postal officials say they are looking at closing hundreds of local post offices and mail processing centers as a way to reduce the red ink.  

Read more
Politics
4:00 pm
Thu September 15, 2011

How would you fix the federal budget deficit?

Congressman Fred Upton (R-St. Joseph) reviews federal spending at a public meeting last month. The 'super comittee's' webpage was not up and running at that time. Now he's looking for ideas.
Lindsey Smith Michigan Radio

Congressman Fred Upton is looking for your ideas on how to reduce the federal budget deficit.

Upton is one of twelve lawmakers selected to serve on a special Congressional committee that will try to come up with a compromise on long-term spending.

Seven of the twelve lawmakers on the special committee will have to agree on a proposal in order to get it to the full Congress for approval. Last month, Upton called it “an enormous task.”

Read more
Politics
10:58 am
Wed July 13, 2011

Levin: Forget budget deficit, focus on debt ceiling

U.S. Sen. Carl Levin, (D) MI
(photo by Steve Carmody/Michigan Radio)

Michigan Senator Carl Levin wants all sides to give up trying to tie increasing the federal debt ceiling to a major cut in federal spending. The budget talks have stalled as President Obama and Congressional Republicans have been unable to agree on closing tax loopholes.

Levin says tying budget cuts to increasing the debt ceiling has been a bad idea.  

“Frankly never should have been combined.  We have no choice but to raise the debt ceiling.  We ought to reduce the deficit.  And we will.   But, whether we can do that in time to avoid a real calamity here which will occur if out debt ceiling is not raised is just anybody’s guess.”  

Congress has until August 2nd to agree to increase the federal government’s debt ceiling. After that, the government could possibly risk going into default.

Education
8:25 pm
Thu May 26, 2011

No one comments on Grand Rapids schools’ plan to deal with biggest budget shortfall

There were more reporters and school officials than members of the public at a public hearing on Grand Rapids Public Schools budget for the 2011-2012 school year.
Lindsey Smith Michigan Radio

Grand Rapids Public Schools is facing a $22 million dollar budget deficit for next school year. That’s the largest shortfall Michigan’s third biggest school district has faced.

The plan to close the gap includes eliminating close to 140 positions and use $5 million in savings. Despite that, no one showed up to speak at a public hearing on the school budget Thursday night.

Read more
Politics
5:12 pm
Tue April 26, 2011

Governor Snyder might bank potential $500 million windfall

Early revenue projections suggest Michigan may collect $500 million more than anticipated
Allan Cleaver Flickr

Governor Rick Snyder says he may want to bank the money from an unexpected improvement in tax collections – if the windfall exists.

Early revenue projections suggest Michigan may collect $500 million more than anticipated.

But Governor Snyder says he’s not ready to count that money as part of his budget plans.

He says the state may be better off putting it into savings.

“I’m bullish that we’re on a positive economic path, but to say we’re going to see just an upward curve without a few bumps, I would be careful about speculating that given the challenge of gasoline prices and such.”

Democrats want to use any windfall to scale back proposed cuts to schools. The next official revenue estimate comes in mid-May.

The House and Senate are continuing to work this week on budget proposals with an eye toward finishing before June first.

Education
1:37 pm
Fri March 4, 2011

Detroit schools get $231M loan from state to help pay employees, vendors

DPS gets $231 million short term loan from state
User thinkpanama Flickr

The Detroit Public School district received a $231 million dollar loan from the state. 

The loan will help the district with "employee payroll and vendor payments," according to Steve Wasko, a spokesman for the district. He says the loan won't help with any of the district's long term financial problems:

  1. $327 million budget deficit.
  2. $161 million dollars in budget cuts if Governor Rick Snyder's proposed education cuts go through.

Michigan Radio's Sarah Cwiek filed a story for NPR about the district's $327 million budget deficit. Here's an excerpt:

With Detroit's public school district facing a $327 million budget deficit, the state-appointed Emergency Financial Manager has proposed closing half the district's schools and putting up to 60 kids in a classroom.

Robert Bobb admits that his deficit elimination plan could be disastrous for students — he calls it "draconian" — but he may have no choice but to implement it.

In January, he gave the plan to the state of Michigan, warning that it's the only way for Detroit Public Schools to "cut its way out" of its deficit. The state's department of education says that's exactly what Bobb should do.

"We're working through some very difficult and challenging budget situations," Bobb said last week. He backed away somewhat from one of the plan's most staggering provisions: 60 kids in some classrooms. But he says class sizes will go up as the district closes about half its schools.

The plan also calls for replacing individual school principals with regional ones, and cutting all general bus service.

Lots of Michigan districts take out short term loans in August to help pay employees and vendors because districts' fiscal year is out of sync with the state’s fiscal year. The Detroit Public Schools district borrows twice a year for cash flow purposes - in August and March.

Pages