News Roundup
9:00 am
Tue March 22, 2011

In this morning's news...

Winter's not over yet

Much of Michigan is under a winter storm warning as cold air and moisture head our way. The storm, which will bring snow, sleet, ice, and rain, is expected to start tonight around 7 or 8pm. The National Weather Service (NWS) says the winter storm warnings and watches are in effect until Wednesday night:

Significant icing of power lines and tree limbs is possible tonight and Wednesday. Roads will likely become ice covered...making travel dangerous by the Wednesday morning commute.

City leaders react to Governor Snyder's revenue sharing plan

Governor Rick Snyder unveiled his ideas for sharing state revenue with local governments yesterday. As Michigan Public Radio's Rick Pluta reported, Snyder's plan would "withhold some state aid to local governments unless they make plans to consolidate services and make their finances more open."

Snyder also called for labor negotiation and pension reforms at the local level.

The Detroit Free Press has reaction from some local leaders:

Robert Cannon, supervisor of Clinton Township, said his community has made some of the changes Snyder recommends. But he doesn't like linking revenue sharing to the outcome of bargaining with employee unions...

Royal Oak City Manager Don Johnson said his city has accomplished some of what Gov. Rick Snyder wants to see in trimming the cost of government...

"Some of our groups have been very cooperative, others not so much, but more and more they're coming to terms with economic realities," Johnson said.

Although he agrees with most of Snyder's plan, he said it may be difficult for some to achieve the results the governor wants.

Detroit Mayor Dave Bing said the reduction would be "a serious impediment to our progress," noting that the city has whittled down an accumulated deficit of $330 million to $150 million.

"I recognize the need for shared sacrifice. However the state must step up to provide local governments like Detroit the tools we need to make the fundamental changes necessary," Bing said in a statement.

Automakers feeling ripple effect from Japan disaster

A new report from IHS Global Insight says every major automaker will be affected by the disaster in Japan in the coming month.

From the Detroit News:

"It is not a matter of if, but when," said Michael Robinet, IHS's Director of Automotive Forecast, in an analysis of the impact of the disaster that halted domestic vehicle production and affected the parts supply chain.

The ripple effect is already being felt at plants around the world but Robinet expects the impact to grow in the coming weeks and months because many automakers rely on Japanese-sourced components such as semi-conductors, integrated circuits, sensors and LCD displays.

Many of those parts were in short supply before the disaster.