emergency manager

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

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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Politics & Government
2:28 pm
Wed August 14, 2013

The financially troubled Pontiac school district has a week to pick a new path to follow

(file photo)
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. 

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Education
7:29 am
Sat August 3, 2013

Pontiac schools edge closer to getting an emergency manager

Pontiac Middle School.
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.

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Education
4:24 am
Mon July 29, 2013

Another Michigan school district will be dissolved this week

Students and parents of the Buena Vista school district embrace during a school board meeting earlier this year
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.

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Politics & Government
8:30 am
Tue July 16, 2013

In this morning's news: New DPS EM, retiree health care in Pontiac, EPA funds Great Lakes projects

Morning News Roundup for Tuesday, July 16, 2013
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.

Politics & Government
1:17 pm
Mon July 8, 2013

Detroit's emergency manager leading bus tour of city's dire conditions

Detroit's Emergency Manager Kevyn Orr
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:

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Politics & Government
10:35 am
Fri July 5, 2013

After 3 years with an emergency manager, Benton Harbor considers an income tax

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

The city of Benton Harbor has been under the control of a state-appointed emergency manager for more than three years. Now some elected leaders in the state’s poorest city are proposing a new way to raise revenue.

Benton Harbor has done a lot to try to get out of debt; laid off workers, combined the police and fire departments, restructured its loans. But City Commissioner Trenton Bowens is convinced the city of roughly 10,000 people needs a citywide income tax.

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Politics & Government
3:36 pm
Wed July 3, 2013

State team assigned to look into Pontiac school finances

pontiac.k12.mi.us Pontiac School District

Gov. Rick Snyder has named six people to review the finances of the Pontiac School District, a step that could lead to the appointment of an emergency manager or other measures for the Oakland County district struggling with a $38 million budget deficit.

 A three-member Local Emergency Financial Assistance Loan Board on June 6 found "probable financial stress" in the district.

Under the new emergency manager law, if a financial emergency is found to exist, Pontiac officials have four options. They can enter a consent agreement with the state, agree to an emergency manager, go through a neutral evaluation process, or choose bankruptcy.

Here's a list of all school districts and cities that engaged with the state's emergency manager law (the Local Financial Stability and Choice Act).

Law
4:06 pm
Wed June 26, 2013

Gov. Snyder appoints an emergency manager in Hamtramck, Flint EM replacement also announced

Cathy Square
Department of Treasury

The city of Hamtramck will once again be under state control.

The Department of Treasury announced Governor Rick Snyder's appointment of an emergency manager for the city of Hamtramck.

Gov. Snyder selected Pontiac City Administrator Cathy Square. She will assume the position on July 1, 2013. 

According to a press release from the Treasury, Hamtramck City Council waived its right to appeal the finding of a financial emergency and unanimously supported the appointment of an EM by the Governor. 

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Education
10:47 pm
Mon June 24, 2013

Muskegon Heights schools emergency manager: 1 year to local control, 28 to pay off debt

EM Don Weatherspoon at a meeting in May 2012.
Lindsey Smith Michigan Radio

With a little luck and another loan from the state, Muskegon Heights Public Schools’ Emergency Manager Don Weatherspoon is predicting the district will pay of its debt the year 2041.

Don Weatherspoon told a small crowd gathered in the high school auditorium Monday night he hopes to hand local control back to the district’s elected school board in one year.

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Education
9:12 am
Mon June 24, 2013

Muskegon Heights schools' emergency manager to update community tonight

MHPS Emergency Manager Don Weatherspoon at a town hall meeting in May 2012.
Lindsey Smith Michigan Radio

Muskegon Heights Public  Schools had nearly a $12 million deficit at the end of last school year. That's when the district’s newly appointed Emergency Manager Don Weatherspoon said the district couldn't afford to open school in the fall. He laid off most all the staff and hired charter school company Mosaica Education to run the schools for five years.

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