emergency manager

Education
5:04 pm
Wed April 23, 2014

Benton Harbor schools in danger of not making payroll, state reopens financial review

Benton Harbor High School (file photo)
Credit Lindsey Smith / Michigan Radio

Benton Harbor Area Schools has been running a deficit since 2007. A review in 2011 found financial stress, but the district was in the middle of making changes to save money. No emergency manager was appointed under a previous version of the law.

But State Superintendent Mike Flanagan says BHAS isn’t making enough progress on the deficit.

The deficit is $14.7 million. For perspective, its revenues this year were $31.8 million.

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Education
7:22 am
Tue April 22, 2014

Muskegon Heights charter board president: Schools will stay open, “That’s a promise.”

Muskegon Heights Public School Academy school board; from left to right Arthur Scott, Carmella Ealom and Darryl Todd (file photo)
Credit Lindsey Smith / Michigan Radio

Muskegon Heights' charter school board acknowledged at a meeting Monday night it doesn’t know how it’ll fund operations for the rest of this school year. But it is reassuring the community it’ll figure something out by next week at the latest.

“As soon as we have something I will share it with you. That’s a promise,” Muskegon Heights Academy’s school board president Arthur Scott said.

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Education
10:03 am
Mon April 21, 2014

Charter school CEO says Muskegon Heights schools owes company $2 million

A loss of students has contributed to cash flow problems. (Data from Michigan Department of Education)
Lindsey Smith Michigan Radio

The Muskegon Heights charter school district owes the company that’s operating its schools a little more than $2 million. That’s according to Mosaica Education’s CEO. 

The new charter district was created in Muskegon Heights when severe cash problems prompted a state takeover of the traditional school district by an emergency manager in 2012. Now the charter district is having cash flow problems of its own.

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Politics & Government
2:52 pm
Wed March 19, 2014

Gov. Snyder declares financial emergency in Royal Oak Township

The red pin shows the location of Royal Oak Township.
screenshot Google Maps

Now that Gov. Rick Synder has confirmed that a “financial emergency” exists in the Detroit suburb, Royal Oak Township officials have seven days to decide how to move forward.

Under the state’s emergency manager law, known as the Local Financial Stability and Choice Act, there are four options the township can choose:

  • a consent agreement,
  • an emergency manager,
  • neutral evaluation,
  • or Chapter 9 bankruptcy

From the governor’s office:

On January 30th, Governor Snyder determined that a financial emergency exists in Royal Oak Township after reviewing a report from an independent financial review team. Following a hearing township officials requested, as allowed under PA 436, State Treasurer Kevin Clinton recommended that the governor confirm his determination of a financial emergency.

State officials say the township board has until 5 p.m. on Wed., March 26  to make a choice on how to move forward.

Newsmaker Interview
5:22 pm
Mon March 10, 2014

Audio: A conversation with former Benton Harbor emergency manager

Benton Harbor
Wikimedia Commons

The city of Benton Harbor is no longer in a financial emergency. Gov. Snyder today announced the appointment of a Receivership Transition Advisory Board.

Behind the turnaround is Benton Harbor’s former emergency manager, Tony Saunders II. He spoke with the host of All Thing Considered, Jennifer White.

Interview with Tony Saunders II, former Benton Harbor emergency manager.

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Economy
4:52 pm
Mon March 10, 2014

Benton Harbor's financial emergency ends

Benton Harbor's financial emergency is over, according to Governor Rick Snyder.
Google Maps

Gov. Rick Snyder says Benton Harbor's financial emergency is over.

It's been four years since the state appointed an emergency manager to run the city's finances. 

Snyder attributes Benton Harbor's success, in part, to the new emergency manager law he signed after voters repealed a former version. The law gives managers broad powers to fix the finances of the cities and school districts. 

Snyder also gives Benton Harbor's most recent emergency manager credit for building trust in the community.

Listen to the audio above.  

Economy
10:37 am
Tue February 11, 2014

Review team to look over Lincoln Park's finances

Lincoln Park Post Office, Lincoln Park MI
Andrew Jameson

LINCOLN PARK, Mich. (AP) - Governor Rick Snyder has appointed a review team to look at the finances of Lincoln Park.

The review is part of the process under state law that could lead to the appointment of an emergency manager. The review team was announced Monday.

A loan board determined last month that "probable financial stress" exists in Lincoln Park, southwest of Detroit.

Lincoln Park borrowed $2.5 million from its water and sewer fund for a pension payment in fiscal year 2013, and 46 percent of its general fund revenues in fiscal 2012 went to debt payments and retirement obligations.

The review team has 60 days to report back to Snyder.

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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
11:52 am
Fri January 17, 2014

Flint's special blue ribbon committee will continue to meet 'behind closed doors'

(file photo)
Steve Carmody/Michigan Radio

Flint’s emergency manager says a special blue ribbon committee looking at ways to better run the city should continue to meet behind closed doors.

Emergency Manager Darnell Earley appointed the 23 member committee this month. The panel will be meeting for the next several months to study how best to run the city. And those meetings are taking place behind closed doors.

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Politics & Government
2:35 am
Mon January 13, 2014

Flint City Council to start on the path to 'self-governance'

Flint city council (file photo)
Steve Carmody/Michigan Radio

The Flint City Council meets tonight, and for the first time in two years, the council will actually have something to do.

Flint has been under a state-appointed emergency manager for two years.

Current emergency manager Darnell Earley says it’s time for the City Council to get more involved in decisions.

“The way to do that is for them to begin some of their meetings on some issues that we want ultimately the council to have some impact on,” says Earley.

Recently, Earley required the City Council members to attend a session on “good governance”.

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Politics & Government
6:11 am
Tue December 17, 2013

Highland Park financial review team to meet with public

Credit City of Highland Park

This afternoon, the public will have an opportunity to address the state panel looking into Highland Park's finances. 

Governor Snyder appointed the review team earlier this month  after a preliminary review found the city in "probable financial stress."

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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
7:38 am
Mon November 4, 2013

Benton Harbor leaders at odds over proposed income tax; voters decide Tuesday

The City of Benton Harbor has been under the control of a state-appointed emergency manager since March 2010.
Lindsey Smith Michigan Radio

A southwest Michigan city under state control will decide whether to impose a new city income tax in Tuesday's election. An emergency manager has been running Benton Harbor since March 2010.

If the proposal passes, people who live or work in Benton Harbor will pay a small percentage of their income to the city government. More than 20 other Michigan cities have an income tax.

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Politics & Government
7:25 am
Tue October 22, 2013

In this morning's headlines: NERD fund gone, HiPark financial trouble, Det Council rejects loan deal

Morning News Roundup, Tuesday, Oct. 22, 2013
User: Brother O'Mara Flickr

Gov. Snyder shuts down NERD fund

"Governor Rick Snyder’s controversial NERD Fund will be shut down this week and replaced. Its official name is the New Energy to Reinvent and Diversify Fund. Governor Snyder used the fund to pick up costs he says should not be paid by taxpayers," Rick Pluta reports.

Highland Park could have an Emergency Manager soon

A state board has determined that the city of Highland Park has probable financial distress. Gov. Rick Snyder will next appoint a review team which could lead to an appointment of an emergency manager. According the Associated Press, "The Local Emergency Financial Assistance Loan Board also determined there is no probable financial distress in Ecorse Public Schools. A similar hearing is scheduled Wednesday for Royal Oak Township."

Detroit City Council rejects loan deal from EM

"The Detroit City Council has rejected a proposed $350 million loan deal. Emergency manager Kevyn Orr . . . planned to use most of the $ 350 million to pay off two banks. That’s controversial because he’s proposed much steeper cuts for other Detroit creditors. Bankruptcy court Judge Steven Rhodes will have to sign off on the deal," Sarah Cwiek reports.

Politics & Government
8:30 am
Fri October 18, 2013

If Benton Harbor voters approve income tax, manager would pay down pension liabilities

The City of Benton Harbor has been under the control of a state-appointed emergency manager since March 2010.
Lindsey Smith Michigan Radio

Benton Harbor Emergency Manager Tony Saunders is breaking months of silence on a proposed city income tax. Saunders says he has some concerns about the proposal.

“I want to make sure we have a strong climate for business investment here. Also, you know this is one of the poorest cities in Michigan, so the last thing I want to see is our citizens being taxed once again when they’re already struggling to make ends meet,” Saunders said.

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Education
4:35 am
Tue September 24, 2013

Students making gains under first-of-a-kind charter; school leaders set bigger goals

Lindsey Smith Michigan Radio

On average, students under the state’s first fully privatized public school district are learning at a faster rate than under the old system. That’s according to data released Monday night by the charter company running the Muskegon Heights district.

Muskegon Heights schools’ emergency manager set up the charter system in the summer of 2012, when the existing district couldn’t afford to open. Highland Park Public Schools is under a similar arrangement.

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Politics & Government
12:15 pm
Wed September 11, 2013

Flint's Emergency Manager resigning

As he leaves his city hall office, Mike Brown says Flint is on the right path. “We’re on a very different path from Detroit. We are on a path toward solvency and not bankruptcy,” says Brown.
Steve Carmody/Michigan Radio

Flint is getting its third emergency manager in less than six months.

Flint’s current Emergency Manager announced his resignation today.

Mike Brown is in his second stint as Flint’s Emergency Manager. Governor Snyder appointed Brown to the post in 2011.   A change in the state law forced him to step down in 2012.   Another change opened the door to Brown replacing his own replacement a few months ago.    Mike Brown also briefly served as Flint’s interim mayor in 2009 after the resignation of former Mayor Don Williamson.  

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Politics & Government
1:25 pm
Sat August 31, 2013

Ford Foundation donates money to help Detroit manage its federal grants

Detroit Emergency Manager Kevyn Orr hired the firm Public Consulting Group to help the city manage its federal grants.
Credit www.mich.gov

The Ford Foundation has pledged $127,000 to hire the firm Public Consulting Group to help manage Detroit's federal grant money.

The city has lost money in the past because of poor oversight of its grants, like a $400,000 lapsed grant to the Detroit Police Department for an armored personnel carrier.

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Stateside
4:47 pm
Tue August 20, 2013

Pontiac emergency manager Lou Schimmel is out of office

An interview with Pontiac's former emergency manager Lou Schimmel.

After nearly five years, the city of Pontiac's financial emergency is officially resolved.

Emergency manager Lou Schimmel resigned yesterday, but the state will still have a heavy hand in the city's finances.

A "transition advisory board" appointed by Governor Snyder will have to approve all major budget decisions.

Lou Schimmel was appointed to that board. He joined us today.

Listen to the full interview above.

Politics & Government
8:17 pm
Mon August 19, 2013

With Pontiac financial emergency "resolved," a very different city emerges

Former Pontiac emergency manager Lou Schimmel, left, and Mayor Leon Jukowski.
Credit Sarah Cwiek / Michigan Radio

For the first time in nearly five years, the city of Pontiac is not under emergency management.

Emergency manager Lou Schimmel resigned Monday, saying the city’s financial emergency is “resolved.”

Schimmel was Pontiac's third emergency manager, serving since September 2011.

Pontiac is a radically different city than it was five years ago. The city’s general fund budget is about half what it used to be.

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