Tagged: treasury department

The state of Michigan is facing a potential class action lawsuit over a student loan program.

Beginning in 2003, the Michigan Students First loan program offered college students an interest rate subsidy after their first 36 on-time loan payments, effectively reducing their interest rate to zero.

But in 2010, the subsidy was ended.

Attorney Jeff Hank says that left thousands of Michigan college students having to pay more in student loans than they had originally planned.

A battle is brewing over where the city of Flint will get its tap water.

Last month, the Flint city council voted to join a project to get fresh water from Lake Huron.   Supporters say the project will save the city millions of dollars by replacing its current water source: the city of Detroit.

But the Detroit Water and Sewerage Department is asking the state Treasury Department to veto the plan.

Bill Johnson is with the DWSD. He says state officials need to step in to prevent a “water war.”

Benton Harbor’s incoming emergency financial manager says he’ll work quickly on a plan to put the city in the black.

Tony Saunders II says no kid aspires to grow up to be an emergency financial manager, but he’s excited about the opportunity. He’s 26-years old, expecting his first child in April. But he says people should consider his experience working in Detroit and Highland Park, not his age.

“I’m not worried about my age and I don’t think others will once they have a chance to meet me and see the pace that I’m willing to work at,” Saunders said.

As expected, the state has replaced Benton Harbor’s emergency manager. Joe Harris has served as Benton Harbor’s emergency manager since former Governor Jennifer Granholm appointed him in March 2010. His contract expires January 31st.

Harris made progress in cutting the city’s deficit, but has been blamed for keeping the community in the dark about his decisions recently. Some of the city’s elected officials asked the state to replace Harris last month. Although state officials are not acknowledging that’s the reason, a letter from Deputy Treasurer Roger Fraser explains the state would work to fulfill the request.

Former Governor Jennifer Granholm appointed Joe Harris to run Benton Harbor’s dismal finances nearly three years ago.

Then City Commissioner James Hightower supported the takeover when others didn’t. But Hightower, who’s now the city’s mayor, says Harris has become increasingly difficult to work with.

Hightower says he and other elected officials told the state they would support a special assessment fee on all property owners in exchange for six conditions. One of them was that Joe Harris be replaced by the end of January.

The U.S. Treasury Department and General Motors announced today that company will buy 200 million of the U.S. government's 500.1 million shares in GM.

GM will pay $27.50 for each share. That's 7.9 percent more than yesterday's closing price of GM stock.

The sale, expected to be completed by the end of the year, will reduce the government's stake in the company to around 19 percent.

The City of Benton Harbor could face major staffing cuts after voters rejected a millage renewal this week. The cash-strapped city has been under the control of a state-appointed emergency financial manager for two years.

“When I heard the news my heart just sank. I didn’t believe it,” Benton Harbor Mayor James Hightower said, calling the rejection “unreal”. The millage helps pay for basic city operations.

Benton Harbor Mayor James Hightower believes voters were misled in part by some elected officials who are against the emergency financial manager.