In this morning's news: Lansing debating surplus, hospital merger sacked, carmakers won't shutdown

May 22, 2013

Policymakers debate how to spend surplus

The debate continues in Lansing over how the state should spend almost half a billion dollars in unexpected revenue this year. The Michigan League for Public Policy believes that because the state’s Earned Income Tax Credit is less than a third of what it was a couple years ago, legislators should restore the credit for the working poor.

"A spokesperson for state House Democrats says they support the idea of using some of the money to restore the Earned Income Tax Credit. However, Governor Rick Snyder says a similar tax credit from the federal government does enough to help working poor families in Michigan. He wants to use the extra cash to fix roads," Michigan Radio's Jake Neher reports.

Merger between Beaumont and Henry Ford sacked

The planned merger between Beaumont and Henry Ford health systems, two of southeast Michigan’s largest health care providers, has been scrapped. The leaders of each hospital signed a letter of intent to merge last fall, but negotiations didn’t work out so well. On Tuesday, Henry Ford CEO Nancy Schlichting sent a letter to employees, indicating they’ll end talks and let the agreement expire.

“It became apparent that two very different perspectives have emerged for the new organization between Henry Ford and Beaumont,” Schlichting wrote. Michigan Radio's Sarah Cwiek has more.

Rising car sales cut plant shutdowns

Summer vacation will be cut short for auto factory workers in Michigan this year, as carmakers try to keep up with heightened demand. Detroit automakers plan to reduce their annual shutdowns at dozens of North American plants that produce popular Ford and Chrysler models.

“This sends a strong signal that the industry is in a healthy place,” Jeff Schuster, senior vice president of forecasting at market researcher LMC Automotive, told The Detroit News.