Tagged: economy

Keeping the brains here at home.

The University of Michigan Ross School of Business and the Changing Gears project are partnering on a panel discussion about "brain drain" being held at 5 p.m.

Update 4:23 p.m.:

Rick Pluta, from the Michigan Public Radio Network, says the House will likely vote on a repeal of the Item Pricing Law tomorrow. Pluta spoke with the sponsor of the bill, State Rep. Lisa Lyons. She says individual price tags wouldn't be required, but stores would be required to prominently post prices so consumers know how much things cost:

"It does eliminate the antiquated requirement that every item be priced which has been in effect since before I was born, but it also upholds and provides for consumer protections that Michigan shoppers have come to know, expect and they deserve," said Lyons.

2:06 p.m.

The Michigan legislature is a step closer in repealing the state's Item Pricing Law.

The law requires that most items on store shelves carry an individual price tag.

The Lansing Bureau of the Detroit Free Press reports:

Legislation to rescind the requirement that almost all retail goods sold in Michigan be individually priced cleared its first hurdle in the state House this morning, winning approval in the Commerce Committee on a 16-3 vote. The measure was approved after its sponsors agreed to an amendment that will require retailers to clearly display prices in close proximity to the item for sale.

Governor Syder has said that a repeal of the law will send a signal that Michigan is a business-friendly state. Retailers say the law is antiquated and drives up prices.

Rick Pluta reported for the Michigan Public Radio Network that

The last effort to repeal the law was five years ago, but it failed under the threat of a veto by Governor Jennifer Granholm.

Proponents of the law say the individual price tags protect consumers from being overcharged.

Update 3:50 p.m.:

The city of Flint did not get approval today from the state for a $20 million bond.   The city needs the money to pay its bills.

The state Treasurer’s office asked the State Administrative Board to table the bond request, which it was expected to approve. The Treasurer’s office is concerned that the city doesn’t have a plan to deal with its long-term debt.   

Flint Mayor Dayne Walling is optimistic the city will get some help from the state. 

“I’m confident the city of Flint and the state Treasurer’s office will work together on a short-term, if not a long-term solution here in the next few weeks.”

Flint faces a multi-million dollar budget deficit.   The city has laid off police officers and dozens of other employees and has reached pay cuts with other city unions. But it still might have trouble making payroll in the coming months. 

Update 2:50 p.m.:

The State Administration Board put off a decision on the city's budget plan this morning. The city wants to borrow money in the form of $20 million in bonds to cover its budget deficit.

The Flint Journal has an update from Flint City Councilman Josua Freeman:

By the end of this month or next month, the city will only have about $500,000 in cash on hand, Freeman said. That's not nearly enough money to meet the payroll expenses of $1.5 million to $2 million every two weeks, he added.

"If nothing changes and we don’t improve our cash flow, we're not going to have enough money to operate," Freeman said.

If the city cannot make payroll, a state takeover or Chapter 9 bankruptcy might be next.

12:42 p.m.

The city of Flint wants to issue bonds to cover it's $17 million budget deficit, but state officials have yet to green light that plan.

The State Administration Board was scheduled to vote on that plan today, but it appears plans have changed.

The Flint Journal is reporting the Board voted to remove the city's request from its agenda today. The Journal reports that led to a cancelation of a Flint City Council meeting scheduled for tomorrow:

Tomorrow's City Council meeting to discuss a $20 million bond request from the state has been canceled.

The meeting, which was scheduled for 5:30 p.m. at City Hall, was canceled after The State Administration Board voted to remove the city's request from its meeting agenda this morning...That move came at the request of the state treasurer's office...City Council President Jackie Poplar said she was made aware of the situation and had no comment until she receives further information.

For $29.95 you can continue the buzz that started with the "Imported from Detroit" Super Bowl ad.

Chrysler is selling t-shirts with the "Imported from Detroit" logo on its Chrysler Collection website ('imported' from the USA, according to the website).

The Detroit Free Press asked a Chrysler spokesperson if the design will be on other items:

Chrysler spokeswoman Dianna Gutierrez said, “It’s too early to discuss. I don’t have any formal details to share at this time.”

The epic two-minute ad is still running on television in edited down one-minute and 30 second versions.

With the impending bankruptcy of Borders Group Inc., we thought we'd give you a quick explanation of the two types of options facing the company.

Chapter 7 Bankruptcy

Also known as "liquidation" or "straight bankruptcy." It sparks an 'everything must go' sale of the company's assets. The company may cease operations after filing Chapter 7 bankruptcy.

The company that owes the money files for Chapter 7 bankruptcy in court. The company's assets are turned over to a bankruptcy trustee who then sells the assets and tries to pay back the company's creditors. In exchange, the company that owes the money is freed from having to pay all of its bills in full (unless some wrongdoing is found).

The details of Chapter 7 rules vary from state to state.

Chapter 11 Bankruptcy

Also known as "reorganization" bankruptcy used by many corporations (like K-Mart and General Motors).

After filing for Chapter 11 bankruptcy, the company that owes money typically keeps running its business and keeps its assets while going through a reorganization process overseen by the court.

A reorganization plan is put forth, and if the majority of creditors accept it, and the court accepts the plan - the company continues operating and repays its creditors under the reorganization plan.

Payment to creditors can come from the sale of assets, repayment from future profits, or from mergers or recapitalization.

By some estimates, the city of Flint is facing a $17 million budget hole.

Flint's Mayor is hoping state officials will allow the city to go to the bond market to overcome the budget deficit.

The State Administrative Board is meeting tomorrow to give a thumbs up or a thumbs down to the city's request.

The Flint Journal reports:

A state board made up of Michigan's top elected officials (or their delegates) is expected on Tuesday to consider the city's application to issue $20 million in bonds, part of Flint Mayor Dayne Walling's budget plan.

The State Administrative Board meeting will take place at 11 a.m. in the Lake Superior Room of the Michigan Library and Historical Center in Lansing. The meetings are open to the public.

Michigan Radio's Steve Carmody reported that without the money, Mayor Walling said the city will have trouble making payroll in March:

“There is nothing more important for our city right now than the bond.   We’ve been carrying a crushing load of past deficits on our shoulders.  And we’ve come to the point where the pooled cash is not there to make payroll throughout the entire month of March without an infusion of cash,” said Mayor Walling.

If state officials do not approve of the bond plan, the state may eventually takeover Flint’s finances.