economy

Auto/Economy
2:31 pm
Tue February 1, 2011

Congressman Upton: power grid not ready for electric vehicles

Is the grid ready for electirc vehicles?
user citizenofthedeep Flickr

Michigan Congressman Fred Upton met with the Kalamazoo Regional Chamber of Commerce this morning during its "Legislative Connection Series" (tickets for the event went for $25 to $50).

The Kalamazoo Gazette reported that Upton talked about the future of energy in the country.

According to the report, Upton said gas prices might hit $4 a gallon by Memorial Day because of political instability and a moratorium on new off-shore drilling.

Higher gas prices, said Upton, will lead to more people buying up plug-in hybrid electric and fully electric cars. Something Upton feels the power grid is not ready for. From the article:

"We're going to need 30 to 40 percent more electricity by the end of the next decade, and we're not prepared," said Upton, Republican of St. Joseph.

Upton said he favors the development of more nuclear power plants and is going to look into why it takes so long to build a nuclear power plant in this country.

Read more
Politics
8:43 am
Tue February 1, 2011

Snyder Report: a frank look at Michigan's finances? (audio)

The state spends more than it takes in.
Citizen's Guide to Michigan's Financial Health Michigan Governor's office

Governor Snyder says he wants you to understand the state's budget crisis. He's rolled out a guide to help you do that.

It's called the "Citizen's Guide to Michigan's Financial Health."

Michigan Radio's Morning Edition Host, Christina Shockley, spoke with Lester Graham this morning.

Graham heads up Michigan Watch, Michigan Radio's investigative unit.

Graham took a look at the Guide and gave us his first impressions. You can listen to the audio here:

News Roundup
8:15 am
Tue February 1, 2011

In this morning's news...

Big snow band headed our way.
National Weather Service

Gearing up for snow

People in the state are gearing up for the coming storm that's expected to dump around a foot of snow in the region in less than 24 hours. Survival instincts are kicking in as people flock to grocery stores, gas stations, and hardware stores. The Kalamazoo Gazette reports some plow drivers are getting their sleep now in anticipation of staying up for the next couple of days. Andy Northey, the owner of R & A Lawn Maintenance and Landscaping in Plainwell, said:

"We're not going to be able to keep up with all the snow that’s expected," said Northey, whose company clears snow from residential and commercial properties from Allegan to Kalamazoo to Battle Creek. "Absolutely no way."

The Detroit News reports that Delta airlines is allowing people to change their flight plans without charging an extra fee:

Delta and other airlines encouraged passengers to change their travel dates. Anyone scheduled to fly this week can switch their flight to a time through Feb. 8 without incurring a fee, said Delta. The waiver involved Michigan and 19 other states expected to be hammered by the storm. The states range from Nebraska to Maine, and Wisconsin to Oklahoma.

The National Weather Service has issued a blizzard warning for the southern part of Michigan as the dense snow band travels across the state. The warning takes effect around 5 p.m. for the western part of the state and around 7 p.m. for the eastern half. The warning will last through much of the day tomorrow.

Snyder releases report on state's finances

Governor Rick Snyder released the "Citizen's Guide to Financial Health" yesterday around 3 p.m. The Governor said the report is "a plain-English, easy-to-understand look at Michigan's financial situation and the challenges ahead."

One of the more controversial parts of the report said that state employees are over-compensated compared to their private sector counterparts. Many state employees and union members are disputing the numbers in the report. The Detroit Free Press said that Snyder called the report a 'call to action':

"Here are the facts; let's solve the problem," he told 430 people who attended the Business Leaders for Michigan Summit in Lansing. "Now we can have an intelligent discussion about what we need to have to put the state on the road to success."

Snyder is expected to release his budget proposal for the state's next fiscal year on February 17th.

Red Cross looking for blood

Bad winter weather has hampered the Red Cross' blood supply. They've made pleas before, and now with a big storm bearing down on the Midwest, they're renewing those pleas. Monica Stoneking, communications manager for the American Red Cross, was quoted in today's Bay City Times:

"Those who live in the path of the storm are asked to schedule a donation time when it is safe to travel," Stoneking said. "All blood types are needed, but there is a special need for donors with O-Negative and B-Negative blood."

The Red Cross says 18,000 expected blood donations have gone uncollected over the last several weeks due to bad winter weather.

Politics
5:30 pm
Mon January 31, 2011

Snyder report: state workers making more than twice their private sector counterparts

Legislators are looking for places to trim the budget as they stare at a $1.8 billion budget hole.

Reducing state employee compensation is on the list.

Michigan Governor Rick Snyder released a report today that says public employees are making more than twice their private sector counterparts.

The Detroit Free Press says the "Citizen’s Guide to Michigan’s Financial Health," may be sending a signal about "one way the new governor expects to address...the budget shortfall." From the Freep:

He said the overall compensation of the average private sector workers fell 13% from 2000-09 while rising 19% for state employees and 13% for local government workers. For state workers, the average annual compensation -- $53,453 in salary, $31,623 in fringes and $13,000 for insurance-- was more than twice that of the private sector, the report said.

The governor was quoted as saying, "I'd be careful about over generalizing on this data but it does show an important trend that needs to be addressed."

Rick Pluta from the Michigan Public Radio Network reports:

Public employee unions and advocates for human services question some of the data used in the report. They also say they’d like to see Snyder’s plans for investing in schools and infrastructure, as well as protecting people hurt by the economy.

Politics
3:56 pm
Mon January 31, 2011

Pure Michigan campaign heads for a House hearing

The Pure Michigan campaign will run out of money mid-year without an infusion of more funds.

A state House committee will hold its first hearing tomorrow on a plan to tap into a state-operated venture capital fund to keep the Pure Michigan campaign on the air for the rest of 2011.

Earlier efforts to come up with an acceptable fee or tax to pay for the campaign have failed.

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Economy
3:32 pm
Mon January 31, 2011

4 Michigan cities get some marketing help

Clare, Michigan is one of four communities chosen to receive downtown rebranding
Michigan Main Street Center

Four Michigan communities are changing their downtown identity with help from the Michigan Main Street Center.

The Center hopes to help each city market their unique characteristics to residents and future visitors.

Laura Krizov manages the program for the Michigan Main Street Center. She says the four cities to receive rebranding services - Boyne City, Clare, Grand Haven, and Niles -  have a downtown presence, but wanted to cultivate one that was more readily identifiable with their community.

Six communities applied for the program, but Krizov said the four were chosen because they demonstrated the need and the ability to benefit from the program:

"We feel that they will be able to pull this off and in the end, we’ll be able to give them a great brand, telling the community who they are and what they want to do."

Each community will get a logo and website that is meant to help them build a cohesive brand.

-Bridget Bodnar, Michigan Radio Newsroom

Politics
11:57 am
Mon January 31, 2011

A "citizen's guide" to the state's financial troubles

Governor Snyder will roll out a citizen’s guide to the financial troubles facing the state, local governments, and school districts before a meeting of business leaders in Lansing this afternoon.

The governor is a retired investor and certified public accountant. He says the guide will give the public an easy-to-grasp outline of the condition of government finances in Michigan.

Governor Snyder says the state’s official financial report runs more than 200 pages and is too big and complicated, and it’s filled with too much bureaucratic jargon for most people to understand.

Snyder says his administration has picked what he considers the most critical information, such as the state’s revenue-to-expenditures, its reserves, and long-term obligations such as pensions, and put it into an easy-to-follow 13-page briefing:

“So I think this will be a big help in terms of the stage for a more-informed discussion, where all the public can participate because we’ll all have better facts to work off of and we’ll see how far beyond our means we’ve actually spent.”

Estimates peg the state’s budget shortfall for the coming fiscal year at about $1.8 billion.

The governor will present his plan to balance the budget later this month.

Politics
3:07 pm
Fri January 28, 2011

Governor Snyder's plan to make up the budget shortfall

Governor Snyder makes no bones about wanting to get rid of the Michigan Business Tax. Some details of his plan were revealed today.

But by getting rid of the business tax, the state will be left with $1.5 billion tacked onto its existing projected deficit for the next fiscal year.

Today, the Governor spoke to the Michigan Press Association at the Detroit Marriott. In his speech, he addressed how he plans to make up the shortfall.

From the Associated Press:

Gov. Rick Snyder says he wants to include most tax breaks in the budget rather than burying them in the tax code...Snyder says it's imperative to get rid of the Michigan Business Tax, which he considers "a dumb tax." To make up the revenue lost by having a lower corporate income tax, he wants to look at existing tax breaks and get rid of those that aren't moving the state forward. The governor says tax breaks should be included in the budget so they can be debated and weighed on their merits.

The Detroit Free Press reported on Snyder's speech as well. The Governor said that one of the "biggest tasks as the chief executive of the state is to find the elusive “they” in state government." From the Freep:

Snyder said his first days in office were a revelation. “The IT guys were in hooking up my computer and I had a square screen,” he said, explaining that it didn’t make sense because the larger, landscape computer screens are better and less expensive. “They told me ‘It’s been 10 years and they said that’s what we had to do,’” Snyder said the IT guys told him. “Almost on a daily basis, I hear about ‘they’ and they tend to have a different opinion that I have. I need to find out who they are and where they reside.

Politics
1:57 pm
Fri January 28, 2011

Snyder's business tax plan revealed

Michigan Speaker of the House Jase Bolger (foreground) and Lieutenant Governor Brian Calley during Governor Snyder's State of the State address.
gophouse.com

Governor Snyder has said he wants to do away with the complex, "job-killing" Michigan Business Tax, and replace it with a more simplified flat tax for businesses in the state.

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Politics
12:01 pm
Fri January 28, 2011

Governor Snyder's first big test?

Some republicans in the Michigan legislature are beginning their push for a repeal of the state's Earned Income Tax Credit (EITC).

It's a credit that bell-weather conservatives, like Gerald Ford and Ronald Reagan, have supported on the federal level.

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Investigative
7:30 am
Fri January 28, 2011

Michigan legislature considers tax increase on working poor

The first federal tax credit for the working poor was signed into law by President Gerald Ford in 1975.
Library of Congress

The idea of an Earned Income Tax Credit, giving people who have low-income jobs a bit of a tax break, has been around for a while.  In 1975, a Michigan Republican, Gerald Ford, signed the first federal credit into law while he was president.

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Auto Earnings
7:23 am
Fri January 28, 2011

Ford announces highest profit in more than a decade

Ford announced this morning that it had made its highest profit in more than a decade
Tooshed4 Flickr

Ford Motor Company announced this morning that it had its best annual performance in more than a decade. Ford earned $6.6 billion last year as sales jumped by 20 percent. Revenues rose 3 percent to almost $121 billion.


UPDATED:  11:40 a.m.  Ford CEO Alan Mulally says salaried and hourly workers will share in the good news in the form of profit-sharing checks.  Hourly workers will get average payments of $5,000.



"To be able to share the wonderful work, the wonderful success of this, with everybody's that's worked on quality, on fuel efficiency, on safety -- it's a tremendous day for all of us," says Mulally.


Ford made $7.2 billion dollars in 1999, but it sold nearly twice the number of vehicles to get that result compared to 2010.  Mulally says the company is benefiting from what he calls a "home improvement loan" of $23-billion, taken out in 2006, that financed the company's effort to slash operating costs and improve quality.



"You think about back then (1999) and now, this is a complete transformation of Ford," he says.


Mulally says the biggest challenge this year is not specifically a Ford problem.  He says the U.S. needs to exercise sound fiscal policy so the economy continues to recover.


Ford Motor Company is forecasting higher profits in 2011 than 2010. 


The company's stock dropped Friday morning, however, as investors reacted to Ford's fourth quarter results.  The company's profits were lower than expected because of costs associated with restructuring some debt.


Mulally says the company has made swift progress in paying off that "home improvement loan."  Debt was reduced 43% in 2010.


Arts/Culture
6:28 am
Fri January 28, 2011

The Cost of Creativity - A Radio Documentary

The Cost of Creativity

Part 1

Part 2

Part 3

Thanks to the following Michigan musicians, whose songs are featured in the documentary:

Ben Benjamin, Luke Winslow-King, Midwest Product, and The Red Sea Pedestrians.

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Politics
4:43 pm
Thu January 27, 2011

Proposal calls for revenue sharing based on population

Proposals for different ways the state delivers payments to local governments for services are bubbling up at the state Capitol.

A bill in the state Senate would distribute revenue sharing payments to cities, townships and villages based on population.

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Auto/Economy
4:28 pm
Thu January 27, 2011

Levin calls for more hybrid car tax credits

Congressman Sander Levin
http://www.house.gov/levin/

A Michigan Congressman says U.S. automakers need more help to sell large numbers of electric and hybrid vehicles.

The Obama administration has set a goal of one million plug-in hybrid vehicles on the road by 2015.

There’s already a federal tax credit of $7,500 to help defray the cost of buying a hybrid or electric car.   But there’s a cap on how many of the credits are available to each automaker. 

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Politics
4:04 pm
Thu January 27, 2011

Repeal of item pricing law introduced in the legislature

Legislation to repeal the Michigan law that requires every item on store shelves to carry a price tag has been introduced in the state House.

Governor Rick Snyder called for an end to the 35-year-old item-pricing law last week in his State of the State address.

He says the law is outdated, and repealing it would send a message that Michigan is a business-friendly state.

Read more
Auto/Economy
1:07 pm
Thu January 27, 2011

GM plans to "go green" without government help

GM says it won't apply for low-interest government loans.
user santoshkrishnan wikimedia commons

The new GM has been turning a corner of late. It posted three profitable quarters last year:

  • $865 million in the first quarter
  • $1.6 billion in the second quarter
  • $2.1 billion in the third quarter

(still waiting on fourth quarter numbers)

Now, in another sign of financial health, the auto company says it will no longer seek government loans to help it modernize factories:

From the Associated Press:

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Economy
5:37 pm
Tue January 25, 2011

Could pizza pans help diversify the Michigan economy?

Jet's Pizza owner took it upon himself to find a way to make the pizza pans
Allan Chatto Flickr

Sylvia Rector, a Detroit Free Press Restaurant Critic, has a nice little piece in the Freep about a shortage of pizza pans around the state.

The pizza pan of choice for local restaurants is a blue steel pan that was once made in West Virginia.

The pans were never intended for baking. They were designed to hold small parts in factories.

Overtime the pans "became the pan of choice for nearly every big name in Detroit-style pizza" (Rector describes Detroit -style pizza like this "dough for the thick but airy crust, absurd amounts of cheese and ladles of rich, long-simmered sauce").

But the company moved its operation to Mexico, and they haven't been able to get production up and running.

Pizza makers were distraught. They needed the pans. From the article:

Restaurant supply companies here -- and apparently everywhere else -- have been out of them for many months.

Pizza makers' orders for pans are stacking up by the thousands and causing problems for big chains and small independents alike.

"You wouldn't even believe how many pans we have on back order" -- at least 4,000 small and medium sizes and 700 extra larges -- says Patti Domasicwicz at People's Restaurant Equipment in Detroit. She hasn't received a shipment since April.

One pizza maker couldn't wait. So he took it upon himself to start making the pans in Michigan.

Eugene Jett, co-founder of Jet's Pizza, says he found a manufacturer that would do it:

"They're cutting them as we speak...The first thing is for me to get my pans...It took me a long time to figure out how to get them done...But I decided then, I will build my own pans."

Rector writes that if the manufacturer thinks the pans will be profitable, they might put the pans into full production.

Perhaps another sign that Michigan is diversifying it's economy.

Read more
State Legislature
4:59 pm
Tue January 25, 2011

Lawmakers moving to eliminate tax credit for the poor

Legislators in the Michigan State Capitol want to do away with the Earned Income Tax Credit.
Lester Graham Michigan Radio

Republicans at the state Capitol are working to get rid of a tax credit for working poor people.

But people who support the Earned Income Tax Credit say the money helps poor people keep their jobs.

Without the credit they might have to go back on welfare, an they say that would cost the state more money.

Gilda Jacobs, director of the Michigan League for Human Services, says all lawmakers have constituents who claim the credit:

"We have some districts where 18% to 20% of the people are filers of this, and they’re putting multi-millions of dollars back into small businesses. So we kind of need to ask people to see this up-close and personal and to really be open to understanding what this is all about."

Republican House Speaker Jase Bolger says the state cannot afford the Earned Income Tax Credit right now:

“The Earned Income Tax Credit is very new in Michigan. It didn’t exist a couple of years ago. It was added at a time where I believe we couldn’t afford it. So as we look at how we are going to revamp Michigan and how we are going to move forward, we have to evaluate things that we can maybe no longer afford, however we do have to look at that with a broader tax structure, and we have to understand that the best social program is a good-paying job.”

Bolger says eliminating the Earned Income Tax Credit will be part of a large package of reforms that are expected to be introduced soon in the House.

Supporters of the tax credit say they have a lot of work to do to convince lawmakers that getting rid of it would hurt people in their districts.

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