municipal bankruptcy http://michiganradio.org en Building unions OK giving to Detroit retiree costs http://michiganradio.org/post/building-unions-ok-giving-detroit-retiree-costs <p>LANSING, Mich. (AP) - Mediators in Detroit's federal bankruptcy case say that building trade unions have agreed to contribute to a fund to cover retirees' benefits.</p> Tue, 20 May 2014 00:18:37 +0000 The Associated Press 17664 at http://michiganradio.org Building unions OK giving to Detroit retiree costs The 'Grand Bargain' may see progress this week at the state capitol http://michiganradio.org/post/grand-bargain-may-see-progress-week-state-capitol <p><span style="line-height: 1.5;">Governor Snyder hopes the State House will make progress toward approving the ‘Grand Bargain’ this week.</span></p><p></p> Mon, 19 May 2014 17:32:38 +0000 Steve Carmody 17656 at http://michiganradio.org Detroit's bankruptcy & the municipal bond market http://michiganradio.org/post/detroits-bankruptcy-municipal-bond-market <p>The judge’s decision to let the city of <a href="http://www.npr.org/templates/story/story.php?storyId=248568485">Detroit pursue Chapter Nine bankruptcy protection</a> could have an effect on the municipal bond market.</p><p>Municipal bonds have long been viewed as one of the safest investments out there. But bond holders may be among the biggest losers in Detroit’s bankruptcy.</p> Wed, 04 Dec 2013 13:43:00 +0000 Steve Carmody 15528 at http://michiganradio.org Detroit's bankruptcy & the municipal bond market How do cities get in a 'death spiral,' and how can we stop it? http://michiganradio.org/post/how-do-cities-get-death-spiral-and-how-can-we-stop-it <p>Ever since Detroit’s became the biggest in American history to seek bankruptcy protection, the term “death spiral” has been in the spotlight.</p><p>The spiral often begins with promises made to municipal workers. Pensions and health coverage are becoming too much for many cities and states to bear. But the law tells mayors and governors that those pension plans need to remain intact.</p><p>As pension costs mount, they try raising taxes, or turning to the municipal bond market. And when those doors are slammed shut, what happens? Essential services get cut, pink slips start flying, and businesses and homeowners get out of town, leaving behind a smaller and poorer population even less able to cover a city’s soaring costs.</p><p> Thu, 21 Nov 2013 21:37:02 +0000 Stateside Staff 15379 at http://michiganradio.org How do cities get in a 'death spiral,' and how can we stop it? Detroit bankruptcy judge rejects bid to keep loan terms secret http://michiganradio.org/post/detroit-bankruptcy-judge-rejects-bid-keep-loan-terms-secret <p>The judge in Detroit’s bankruptcy case has denied a bid to keep some details of a controversial loan agreement secret.</p><p>Judge Steven Rhodes ruled Thursday that the city must disclose all the terms of a proposed loan from the British financial giant Barclays. That loan deal is as complex as it is controversial.</p> Fri, 15 Nov 2013 12:00:00 +0000 Sarah Cwiek 15298 at http://michiganradio.org Detroit bankruptcy judge rejects bid to keep loan terms secret Could a private fund save both the DIA and public pensions? http://michiganradio.org/post/could-private-fund-save-both-dia-and-public-pensions <p>If anything’s clear coming from Detroit’s bankruptcy case it is this: the city needs new solutions.</p><p>Daniel Howes, Detroit News business columnist, wrote his column today on a proposal from Chief U.S. District Judge Gerald Rosen. Rosen is proposing a <a href="http://www.detroitnews.com/article/20131114/METRO01/311140048/">new private fund</a> that could have a major impact on the future of the Detroit Institute of Arts, the city’s retired workers and bankruptcy proceedings.</p><p><em>Listen to the full interview above.</em></p><p> Thu, 14 Nov 2013 21:20:05 +0000 Stateside Staff 15288 at http://michiganradio.org Could a private fund save both the DIA and public pensions? Crucial mediation process starts in Detroit bankruptcy case http://michiganradio.org/post/crucial-mediation-process-starts-detroit-bankruptcy-case <p>Detroit officials and some of the city’s creditors will <a href="http://www.freep.com/article/20130816/NEWS01/308160073/Steven-Rhodes-Gerald-Rosen-Detroit-bankruptcy-mediation">sit down for their first official mediation session</a> Tuesday.</p><p>The mediation was ordered by Judge Steven Rhodes, who’s in charge of Detroit’s Chapter 9 bankruptcy case. Rhodes has appointed chief federal district court judge Gerald Rosen as mediator.</p> Mon, 16 Sep 2013 23:11:03 +0000 Sarah Cwiek 14448 at http://michiganradio.org Crucial mediation process starts in Detroit bankruptcy case Objections flood in as deadline passes to oppose Detroit bankruptcy http://michiganradio.org/post/objections-flood-deadline-passes-oppose-detroit-bankruptcy <p>Tuesday saw a flood of court filings from Detroit's creditors.</p><p>Midnight was the deadline for creditors to file objections to Detroit's request for Chapter 9 municipal bankruptcy protection.</p><p><a href="http://www.nytimes.com/2013/08/20/us/michigan-many-object-to-bankruptcy.html?emc=edit_tnt_20130819&amp;tntemail0=y">About 100 unions</a>, pensioners, and individuals filed objections with the court.</p> Tue, 20 Aug 2013 16:54:29 +0000 Sarah Hulett & Sarah Cwiek 14067 at http://michiganradio.org Objections flood in as deadline passes to oppose Detroit bankruptcy Oakland County to move ahead with bond sale; other Michigan municipalities not so lucky http://michiganradio.org/post/oakland-county-move-ahead-bond-sale-other-michigan-municipalities-not-so-lucky <p>Oakland County is going ahead with a planned bond sale next week.</p><p>And according to county officials, they won’t be penalized for Detroit’s recent bankruptcy filing.</p><p>Oakland County has the highest bond rating possible—AAA. And officials say that’s allowed them to sell bonds at a reasonable interest rate, despite Detroit’s recent bankruptcy.</p><p>From the <a href="http://www.freep.com/article/20130808/BUSINESS06/308080095/Oakland-County-bond-market-Orr-bankruptcy">Detroit Free Press</a>:</p> Fri, 09 Aug 2013 18:11:39 +0000 Sarah Cwiek 13921 at http://michiganradio.org If Detroit's in bankruptcy court, why isn't Flint too? http://michiganradio.org/post/if-detroits-bankruptcy-court-why-isnt-flint-too <p>With all the talk about Detroit’s path into bankruptcy court, some people have been asking why hasn’t Flint gone the same route?</p><p>Like Detroit, Flint’s city finances have been a mess for a long time.</p><p>Governor Snyder not only appointed an emergency manager to run Flint, he did so more than a year before he appointed one in Detroit.</p> Thu, 08 Aug 2013 19:29:00 +0000 Steve Carmody 13898 at http://michiganradio.org If Detroit's in bankruptcy court, why isn't Flint too? What does bankruptcy mean for Detroiters? http://michiganradio.org/post/what-does-bankruptcy-mean-detroiters <p>Detroit's bankruptcy filing has raised a lot of questions, especially for people who live in the city. It's unlikely the day-to-day lives of Detroiters will change very much under a bankruptcy.</p><p>Lyke Thompson is the director of Wayne State University's Center for Urban Studies. He says Detroit's city services are already pretty bad, and that there will be few immediate differences for city residents, but things could get worse before they improve.</p> Fri, 19 Jul 2013 20:02:09 +0000 Michigan Radio Newsroom 13616 at http://michiganradio.org What does bankruptcy mean for Detroiters? Lessons for Detroit: Municipalities that also declared bankruptcy http://michiganradio.org/post/lessons-detroit-municipalities-also-declared-bankruptcy <p dir="ltr" style="line-height:1.3636363636363635;margin-top:0pt;margin-bottom:11pt;"><span style="color: rgb(44, 44, 44); font-family: Arial; font-size: 15px; white-space: pre-wrap; line-height: 1.3636363636363635;">What will bankruptcy mean for Detroit?</span></p> Fri, 19 Jul 2013 18:22:23 +0000 Michigan Radio Newsroom 13610 at http://michiganradio.org Lessons for Detroit: Municipalities that also declared bankruptcy Detroit's agony is also ours http://michiganradio.org/post/detroits-agony-also-ours <p><span style="line-height: 1.5;">The day before Detroit declared bankruptcy, I was driving with Jack Dempsey, president of the Michigan Historical Commission, along a weed-choked Detroit street, next to a forbidding fence.</span></p><p>“There it is,” he said, pointing to a battered old two-story wood frame house. The windows were boarded up; one of the slats was falling off the sides. “Know what that is?“ he asked. I did. It was the home of Ulysses S. Grant, the eighteenth President of the United States, the general who won the Civil War for the North.</p><p>Grant was the only president ever to live in Detroit, back when he was a young army officer, spending his time racing horses up and down Fort Street. Anywhere else, this house would be a tourist attraction and a shrine, but instead, Grant’s house sits there, decaying, as the historical commission scrambles to try to figure how to move it before someone firebombs it. Fri, 19 Jul 2013 13:15:40 +0000 Jack Lessenberry 13609 at http://michiganradio.org Detroit's agony is also ours In this morning's news: Detroit bankruptcy, Michigan tuition policy, school district finances http://michiganradio.org/post/mornings-news-detroit-bankruptcy-michigan-tuition-policy-school-district-finances <p><strong>Detroit files for bankruptcy</strong></p><p>Governor Rick Snyder has approved Detroit’s <a href="http://www.michiganradio.org/post/city-detroit-files-federal-bankruptcy-protection">bankruptcy filing</a>.&nbsp; It is now the largest municipal bankruptcy case in U.S. History.&nbsp; Michigan Public Radio’s Rick Pluta reports that “the governor says bankruptcy will ultimately offer creditors some assurances on how much they will be paid. A federal judge still has to approve the request.”</p><p><strong>University of Michigan grants in-state tuition to undocumented immigrants</strong></p><p>Yesterday, the University of Michigan Board of Regents approved the provision of in-state tuition to undocumented immigrants.&nbsp; Michigan Radio’s Tracy Samilton <a href="http://www.michiganradio.org/post/university-michigan-approves-state-tuition-undocumented-students-us-military-veterans">reports</a> that “undocumented students will have to show they attended middle school and high school in Michigan to get the lower tuition rate.”&nbsp; This comes after two years of lobbying from activists and undocumented students.</p><p><strong>Last chance for Inkster and Buena Vista school districts</strong></p><p>The Inkster and Buena Vista school districts have until Monday evening to prove that they can finance the 2013-2014 school year.&nbsp; If funds cannot be found, the districts will then be closed.&nbsp; Michigan Public Radio’s Rick Pluta reports that “if Inkster and Buena Vista are shut down, their students would go to other schools in the intermediate school district.” Fri, 19 Jul 2013 11:53:25 +0000 Michigan Radio Newsroom 13608 at http://michiganradio.org In this morning's news: Detroit bankruptcy, Michigan tuition policy, school district finances Detroit pension funds sue city's emergency manager, governor in attempt to block bankruptcy http://michiganradio.org/post/detroit-pension-funds-sue-citys-emergency-manager-governor-attempt-block-bankruptcy <p><span style="color: rgb(34, 34, 34); font-family: arial; font-size: small; line-height: normal;">Two Detroit pension funds have sued the city’s emergency manager,&nbsp;Kevyn Orr, and Governor Rick Snyder in an attempt to block the Motor City from filing for bankruptcy.</span><br style="color: rgb(34, 34, 34); font-family: arial; font-size: small; line-height: normal;"><br><span style="color: rgb(34, 34, 34); font-family: arial; font-size: small; line-height: normal;">The General Retirement System and the Police and Fire Retirement System of the City of Detroit filed the lawsuit yesterday, <a href="http://www.bloomberg.com/news/2013-07-18/detroit-pension-funds-sue-to-block-city-bankruptcy-filing.html">Bloomberg’s Margaret Cronin Fisk reported</a>. The state’s constitution offers protection of public retirees’ rights, and the petitioners of the lawsuit are claiming that a Detroit bankruptcy would violate those rights.</span><br style="color: rgb(34, 34, 34); font-family: arial; font-size: small; line-height: normal;"><br><span style="color: rgb(34, 34, 34); font-family: arial; font-size: small; line-height: normal;">Orr’s office refused to comment on the lawsuit.</span><br style="color: rgb(34, 34, 34); font-family: arial; font-size: small; line-height: normal;"><br><span style="color: rgb(34, 34, 34); font-family: arial; font-size: small; line-height: normal;">Orr hasn’t commented on which pension funds would be cut, and to what degree, but he has vowed to make “<a href="http://www.freep.com/article/20130717/NEWS01/307170144/Detroit-s-pension-boards-file-suit-against-Kevyn-Orr-governor">significant cuts</a>” to pension payments.</span></p><p> Thu, 18 Jul 2013 15:25:58 +0000 Michigan Radio Newsroom 13596 at http://michiganradio.org Detroit pension funds sue city's emergency manager, governor in attempt to block bankruptcy The week in review: Taylor teacher contracts, same-sex adoption, and Detroit pensions http://michiganradio.org/post/week-review-taylor-teacher-contracts-same-sex-adoption-and-detroit-pensions <p><em>Each week, Michigan Radio's political analyst Jack Lessenberry, and weekend host Rina Miller look back on the big news events in Michigan. You can listen to their discussion above. Below is a short summary.</em></p><p><strong style="line-height: 1.5;"><span style="line-height: 1.5;">Lawsuit over Taylor School District contract tossed out</span></strong></p> Sat, 13 Jul 2013 13:00:00 +0000 Jack Lessenberry & Rina Miller 13508 at http://michiganradio.org The week in review: Taylor teacher contracts, same-sex adoption, and Detroit pensions Orr cancels Detroit bus tour as creditors pull out http://michiganradio.org/post/orr-cancels-detroit-bus-tour-creditors-pull-out <p><span style="line-height: 1.5;">&nbsp;</span>Detroit emergency manager Kevyn Orr has cancelled a planned bus tour for the city’s Wall Street creditors.</p><p>Some of those creditors are in Detroit this week to meet with Orr, and&nbsp;to take a look at some of the city’s assets.</p><p>The planned tour would have put the creditors on a city bus, and taken them for some pretty grim sightseeing.</p><p>It was meant to convince them that the city’s condition is dire,&nbsp;and bondholders should big accept losses on their Detroit debt.</p> Wed, 10 Jul 2013 13:23:38 +0000 Sarah Cwiek 13457 at http://michiganradio.org Orr cancels Detroit bus tour as creditors pull out Detroit's emergency manager launches key talks with creditors http://michiganradio.org/post/detroits-emergency-manager-launches-key-talks-creditors <p>Detroit’s emergency manager Kevyn Orr sits down with the city’s major creditors Friday.</p><p>The meeting sets up negotiations that could help Detroit avoid filing for bankruptcy—or lay the groundwork for it.</p><p>Orr will gather all the city’s big creditors—unions, retirees, and banks—to pitch his plan.</p><p>They’ll all be asked to take some major losses to help Detroit shed some of its crippling debt load, estimated at a least $15 billion. Fri, 14 Jun 2013 04:06:01 +0000 Sarah Cwiek 13053 at http://michiganradio.org Detroit's emergency manager launches key talks with creditors Orr's message to Detroit: "I'm going to accomplish this job" http://michiganradio.org/post/orrs-message-detroit-im-going-accomplish-job <p>Detroit emergency manager Kevyn Orr didn’t share much new information at his first public meeting Monday night—but he did set the stage for an upcoming meeting with the city’s creditors.</p><p>At his first public meeting—required by the emergency manager law that empowers him--Orr told <a href="http://www.detroitmi.gov/Portals/0/docs/EM/Reports/City%20of%20Detroit%20-%20Final%20Financial%20&amp;%20Operational%20Plan%20_45%20Day%20Pl.pdf">a story we already know</a>: Detroit hasn’t been paying contractors, making pension payments, and has only survived by borrowing billions.</p> Tue, 11 Jun 2013 04:08:07 +0000 Sarah Cwiek 12984 at http://michiganradio.org If a state law can't save the DIA, here's what might http://michiganradio.org/post/if-state-law-cant-save-dia-heres-what-might <p>Ever since Detroit emergency manager Kevyn Orr mentioned maaaaybe putting DIA gems on the table to appease creditors, the you-know-what has hit the fan.</p><p>Selling art to pay off debt is a big museum no-no, especially for one as well-regarded as the Detroit Institute of Arts.</p><p>Why, museum supporters ask, would any rich donor ever want to give money or art to the DIA again?</p><p>What’s to guarantee their gifts won’t just be auctioned off the next time the city needs cash?</p><p>And further, if the DIA is blacklisted and other cultural icons sold off, how is a post-bankruptcy Detroit supposed to become a sustainable, cultural, people-drawing city? Sat, 01 Jun 2013 21:42:49 +0000 Kate Wells 12841 at http://michiganradio.org If a state law can't save the DIA, here's what might