emergency loans

Education
6:17 pm
Mon April 28, 2014

Michigan is running out of money to lend to schools in financial distress

Benton Harbor Area Schools Superintendent Leonard Seawood discusses the district's finances in front of the Emergency Loan Board on Monday afternoon.
Credit Lindsey Smith / Michigan Radio

State law gives a special board up to $50 million to loan to schools in financial distress. The long-term, low-interest loans are supposed to help school districts restructure and pay down their debt.

But it appears $50 million isn’t going to be enough.

With the loans the Emergency Loan Board issued Monday, it's nearly reached that cap, four years ahead of schedule. Treasury Spokesman Terry Stanton says the board has issued $48.5 million to schools so far.

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Politics & Government
6:20 am
Wed February 5, 2014

With $2.3 million state loan, Benton Harbor emergency manager prepares an exit

Benton Harbor City Hall pictured in the summer of 2011.
Lindsey Smith Michigan Radio

Benton Harbor’s emergency manager is planning his exit. That’s after the state agreed to loan the city more than $2 million.

When Benton Harbor officially began its financial emergency, Jennifer Granholm was the governor. During the last four years, the city has operated under three different versions of Michigan’s emergency manager law. That’s how long it’s been.

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Politics & Government
2:57 pm
Tue November 19, 2013

Benton Harbor emergency manager asks state for loan; city commissioners reject the plan

Benton Harbor City Hall pictured in the summer of 2011.
Lindsey Smith Michigan Radio

Elected leaders in Benton Harbor are rejecting the emergency manager’s plan to take on debt to pay down the city’s deficit.

Benton Harbor has been under state control for three years. It's cut its deficit by a third; from $3.4 million in 2010 to $1.2 million, according to the latest audit.

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Politics & Government
12:03 pm
Wed September 19, 2012

Elected officials in Benton Harbor take steps to regain control of their city

Benton Harbor City Hall
Lindsey Smith Michigan Radio

A state appointee has run the cash-strapped city for more than two years. Former Governor Jennifer Granholm appointed Joe Harris the city’s emergency financial manager in March 2010.

Now elected leaders have set a goal for him to leave by December 2013. They hope to get a $7 million emergency loan from the state to help get Benton Harbor out of its “financial emergency”.

Mayor James Hightower says the loan would be “a game changer”.

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Government
4:16 pm
Fri August 24, 2012

Using emergency loans to pay off other loans; some Michigan school districts are doing it

The recession has made it harder for local governments and school districts to balance their budgets. This summer the governor signed a new law creating a board that will help those hardest hit cope with short term cash flow problems.

Earlier this month the emergency financial managers of both Muskegon Heights Public Schools and Highland Park schools got emergency loans to pay off other state loans. MHPS borrowed $7.65 million while Highland Park schools borrowed $4.4 million.

“It’s not a handout; it’s a loan in order to help get people on their feet, in order to make the changes that are necessary going forward,” said Caleb Buhs, a spokesman for Michigan’s Department of Treasury. The school districts have 30 years to pay the state back.

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