emergency manager

this one

Lindsey Smith / Michigan Radio

Benton Harbor Area Schools has taken the next step in process that could result in an emergency manager.

Gov. Rick Snyder announced today his appointment of a six-member review team. The team has 60 days to determine if the district is in financial stress.

The district’s superintendent, Leonard Seawood, told state officials a few weeks ago it is. 

Lindsey Smith / Michigan Radio

Muskegon Heights schools’ emergency manager thinks a new setup to run the district next year will be more economical than hiring another charter company.

For the last two years, a for-profit company ran Muskegon Heights schools. But it ran into cash flow problems. The state had to give the district two cash advances this spring to pay staff and give it an emergency loan to keep schools open through the end of the school year.  

“We are in a survival mode,” Muskegon Heights schools emergency manager Gregory Weatherspoon said at a press conference Tuesday. “We will go for whatever will work and save us money and this was a cost savings to us,” he said.

Lindsey Smith / Michigan Radio

Updated: Emergency manager says new arrangement will be more economical than charter school company

Muskegon Heights schools will not hire another for-profit charter company to run the district. Instead, the district plans to hire its own superintendent, a staffing company and the intermediate school district in Muskegon County to run schools for the next three years.

Steve Carmody / Michigan Radio

Despite a previous state takeover, a slew of surprise costs and a dramatic drop in student enrollment have led to a new budget deficit for the public school district in Highland Park.

A multi-million dollar deficit prompted a state takeover of Highland Park Public Schools in 2012. The state appointed emergency manager restructured the district’s deficit into long-term debt with over $7 million in emergency loans from the state.

The manager created a new charter school district to educate students. In 2012  The Leona Group LLC., a charter company,was hired to run the entire district for an annual fee of $780,000.

But now the district is running a deficit again.

Lindsey Smith / Michigan Radio

Updated 5:10 p.m.

Mosaica Education and Muskegon Heights Public School Academy have come to a mutual agreement to end their working relationship.

“This was a difficult decision for us and our board,” Mosaica Chief Executive Officer Michael Connelly said in a written statement.

“We are very proud of the academic turnaround we were able to achieve under the leadership of Alena Zachery-Ross, our regional vice president and the superintendent for the system,” he said.

Benton Harbor High School
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.

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.

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.

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.

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.


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.  

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.

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.

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.

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”.

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."

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.

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.

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.

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.

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.

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.  

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.

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.

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.

Steve Carmody/Michigan Radio

Pontiac school district leaders have seven days to decide what path they wish to follow to address the district’s financial emergency.

Governor Rick Snyder has officially confirmed his determination that Pontiac schools are in a financial emergency. 

pontiac.k12.mi.us / Pontiac School District

A state review team has determined the Pontiac school district is saddled with so much debt it’s in a financial crisis.

Now it’s up to Governor Rick Snyder to decide whether he agrees with that determination.

The state-appointed board found the school district’s debt has continued to grow over the past five years and it’s now almost $38 million dollars in the red with no credible plan to dig out. The district has missed paying some critical bills, including employee health insurance premiums.

Steve Carmody/Michigan Radio

Buena Vista schools will become the second district to be permanently dissolved under a new state law this week.

After Buena Vista shut down without warning in May, state legislators decided they needed an additional tool to deal with fiscal emergencies besides the emergency manager law.

The new law requires financially troubled districts to prove they have enough money to make it through an entire school year. If not, they can be dissolved. That happened to Inkster's school district last week.

User: Brother O'Mara / flickr

Detroit Public Schools get new emergency manager

Governor Rick Snyder has named Jack Martin as the new emergency manager for Detroit Public Schools. Martin replaces Roy Roberts, who is retiring after two years in the position. Martin is leaving his position as Detroit’s chief financial officer.  Roberts says DPS still has a long way to go, but conditions are noticeably better than when he started; the current budget deficit is more than $70 million.

Retiree health care coverage suspended in Pontiac

Pontiac’s emergency manager Louis Schimmel has proposed the Emergency Loan Board address an expected $6 million general fund shortfall in the current budget year. The board approved a plan to suspend health care coverage for retirees from the city of Pontiac and increase their monthly pension payments. The city's roughly 1,000 pensioners will get an extra $400 a month to buy their own health care, the Associated Press reports.

EPA now accepting Great Lakes grant applications

The U.S. Environmental Protection Agency has $9.5 million to distribute for Great Lakes projects and is looking for takers. The money comes from the Great Lakes Restoration Initiative, an Obama administration program to clean up and protect the lakes from a variety of threats. A webinar explaining the application process will be held July 30.

mich.gov / Michigan Government

Detroit’s answer to the famous bus tours of New York City is emerging this week.

Well, kind of.

On Wednesday, Detroit’s emergency manager Kevyn Orr will lead creditors on a guided bus tour through the city. But the tour won’t be highlighting the city’s landmarks. Instead, the creditors will be checking out dire conditions in some of Detroit’s neighborhoods.

From the Associated Press:

Pages