emergency manager

this one

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. 

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.

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.

User: Brother O'Mara / Flickr

Medicaid goes to House floor

Yesterday, the Michigan House Competitiveness Committee voted to send the Medicaid expansion bill to the floor. Michigan Radio's Jake Neher reports that while Republicans were split on the issue, “Democrats on the panel all voted in favor of the bill. That’s after lawmakers dropped a controversial plan to limit able-bodied adults to four years on Medicaid. But they say they’re still concerned about language that would raise premiums and co-pays for some patients after four years.”

Questions for Governor about Detroit's emergency manager

Concerns have been raised about Governor Rick Snyder’s process in selecting Kevyn Orr as Detroit’s emergency manager. Rick Pluta reports that “a judge says Governor Rick Snyder’s office must turn over e-mails and other records related to the candidate search for a Detroit emergency manager. The judge’s order is related to a lawsuit that alleges Detroit emergency manager Kevyn Orr was hired illegally. The lawsuit claims the process was rigged and carried out in violation of Michigan’s open meetings law.”

Heroin incidents on the rise in Michigan

A rash of heroin overdoses occurred in Washtenaw County last week, and incidents are on the rise across parts of the state. “Authorities say a particularly toxic heroin mix known by some on the street as ‘black shadow’ appears to be circulating in southeast Michigan communities, causing a rise in overdoses and at least one death this month,” report Robin Erb and Tammy Stables Battaglia of the Detroit Free Press.

The Muskegon Heights school system has been fined nearly $100,000 by the Michigan Department of Education. The department launched the investigation after Michigan Radio reported the new Muskegon Heights charter school district had about 10% of teachers working without a valid teaching certificate or permit. It’s against state law to do that.

cncphotos / flickr

This week in Michigan politics, Kyle Norris and Jack Lessenberry talk about Republican opposition to Medicaid expansion, former Secretary of State Terri Lynn Land’s candidacy for the U.S. Senate, and the financial emergency in the city of Hamtramck.

Stephen Boyle

Earlier this morning, Detroit’s city council voted unanimously to override Mayor Dave Bing’s veto of budget cuts proposed by the council.

Last week, the mayor rejected changes the city council wanted implemented in the city’s $1-billion budget for fiscal year 2013-14, including cuts to his own office. The Detroit News reported:

“The council wanted deeper cuts to Bing's staff and quicker implementation of a new health care cost-sharing formula.

Bing however did not turn down deeper cuts the council recommended for its own department and the consolidation of its divisions.”

The council's override of Bing's veto was unanimous (8-0). Charles Pugh, the president of the council, said this was proof that the council was “standing united.”

But with Emergency Manager Kevyn Orr at the helm of the city’s finances, how much does a united city council matter when it comes to Detroit’s budget?

User: Brother O'Mara / flickr

State Supreme Court Justice faces sentencing

Former Michigan Supreme Court Justice Diane Hathaway is due in court today to be sentenced for fraud. Hathaway was forced to resign in January when she pleaded guilty to a scheme to cheat the bank by hiding assets.  Hathaway’s attorney is asking that she be allowed to perform community service and pay thousands of dollars in fines; however, federal prosecutors have asked for prison time of 12 to 18 months. Michigan Radio's Rick Pluta has more.

Benton Harbor EM believes deficit will be eliminated in one year

Tony Saunders, the emergency manager of Benton Harbor, says elected leaders are likely to regain control within a year when the city's structural deficit will be eliminated. Michigan Radio’s Lindsey Smith reports Benton Harbor’s new emergency manager says he’s cut more than a million dollars from the budget in just three months.

Senator Debbie Stabenow's farm bill is headed to the senate

Senator Debbie Stabenow will rally in West Michigan this week. She's trying to get farmers to pressure lawmakers to pass her new farm bill to funds crop insurance programs and research to help fight invasive insects. Last year the Senate passed the farm bill but it died in the House. The Senate is expected to vote on the farm bill early next month.

Lindsey Smith / Michigan Radio

Benton Harbor’s new emergency manager says the city is on track to eliminate its structural deficit within a year. The city's finances have been under state control for more than three years.

Emergency Manager Tony Saunders started in February after the state ended the previous manager's contract at the city commission’s request.

Lindsey Smith / Michigan Radio

New reports show special education students in Muskegon Heights didn’t get all the services they should have this year. The company that runs the state’s first all-charter public school district is working to correct the problems.

Problems with charter company’s handling of special ed services

Federal law and state regulations outline the rules that are supposed to make sure kids with special needs still get a fair education.

Michigan’s Department of Education found more than a dozen ways the new Muskegon Heights charter district violated those rules, affecting a couple hundred special education students.

“In my opinion this was probably the worst delivery of special education services I’ve seen in my career,” said Norm Kittleson, a former special education teacher at Muskegon Heights. He’s been teaching for 15 years.

Kittleson started teaching a small class of students with learning disabilities and emotional issues at Muskegon Heights last October.

Steve Carmody / Michigan Radio

Battle Creek State Senator Mike Nofs says he doesn’t think higher than expected revenue in the school aid fund should be used to bail out struggling school districts.

Nofs says at today’s revenue estimating conference, state officials will announce the school aid fund has nearly $100 million more than predicted.

Nofs expects there will be push to use that money to help the struggling Pontiac and Buena Vista school districts. But he says that’s not a good idea.

Kalkaska schools

No doubt, public schools in Michigan are struggling.

Around 400 students in the Buena Vista school district in Saginaw have been shut out after the district announced they couldn't make payroll.

And it was revealed yesterday that Pontiac schools are close to running out of money and might have to close their doors early.

Steve Carmody / Michigan Radio

A Saginaw area school district that's closed its doors has now asked the state to review its finances.

That's the first step toward a state appointed emergency manager.

But the move does not guarantee the District's 400 students will be back in class anytime soon.

The Buena Vista school board heard from parents and students last night, angry about the abrupt and apparent early end of the school year.

“If we don’t get these kids back in school…we’re going to be the ones who destroyed their lives,” one upset father told the school board. 

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Flint’s Emergency Manager, Ed Kurtz, says he will resign come June 30th, which may put Flint a step closer to returning to local control. Flint Mayor Dayne Walling talks with Jennifer White about the financial future of Flint.

Flint’s city council recently passed a resolution asking Governor Rick Snyder to remove the city’s emergency manager and appoint a transition advisory team.

“There are a number of requirements in the law that would have to be met by the appointed manager before a transition board could be put in place, such as the adoption of a two-year budget. So, city council leadership and I have been calling on for those steps to get done as soon as possible. The city of Flint does face financial challenges, let’s get addressed as soon as possible so we can move on,” says Mayor Walling.

When asked how financially healthy Flint is right now, Walling says:

“It’s marginally stable. But our position is that it’s going to take some long-term planning, some serious community partnerships to get the city to where it’s more sustainable going forward. And that work cannot be done effectively by an appointed manager.”

Listen to the full interview above.

Lindsey Smith / Michigan Radio

People in Benton Harbor voted overwhelmingly to raise property taxes to support city services in Tuesday’s election.

That’s after voters rejected a similar set of proposals last November. The city is already running in the red and the millage represents around 20-percent of the city’s income.

“You just can’t see me dancing in the streets on the radio,” Mayor James Hightower said over the phone Tuesday night, “It’s a great day in Benton Harbor.”

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The financial storm has been brewing at the Buena Vista School District outside of Saginaw for some time, but it came to a head today.

The Buena Vista School District announced that the school is closed today and that teachers will be laid off.

A community meeting is expected to be held at 6 p.m tonight.

The District has faced declining enrollment at a time when public education funds are being cut in the state.

Lester Graham / Michigan Radio

This "week in review," Rina Miller and Jack Lessenberry discuss the U.S. Senate race, allowing health coverage for live-in partners and the retirement of the emergency manager for Detroit Public Schools.

Detroit Public Schools

The state-appointed emergency manager for Detroit Public Schools announced his retirement today. 

Governor Rick Snyder appointed Roy Roberts to manage the state's largest school system in 2011.

Joyce Parker

  State officials say the financial emergency in the city of Ecorse has been resolved.
 
The city has been under the control of an emergency manager since 2009 – when then-Governor Jennifer Granholm made the appointment.
 
Now, word comes that the city’s budget is balanced and a $20 million deficit has been eliminated.
 
But the announcement doesn't mean elected officials are getting their authority back right away. That’s because Joyce Parker – Ecorse's former emergency manager - has given the city a two-year budget that it must follow.
 
Parker – who we should note is also the emergency manager of Allen Park– joined us today.

Listen to the full interview above.

Wikipedia Commons

Rep. Nancy Pelosi, D-CA, says Detroit is "still engaged in a great freedom walk … and a campaign to preserve the dignity of all Americans."

Pelosi made the remarks as the featured speaker for the Detroit NAACP’s 56th annual gathering last night.

Will Michigan's next emergency manager operate the Pontiac School District?

More from the Associated Press:

Officials plan to wrap up a review by next month of the Pontiac School District's finances that could lead to the appointment of an emergency manager or other measures.

District officials recently were notified by state Superintendent Mike Flanagan of the preliminary financial review, which is to begin Monday and end by May 24.

In a letter, Flanagan describes the public school district's situation as "critical and alarming."

Hamtramck could be the next Michigan city to get an emergency manager.

Governor Snyder appointed a state review team to examine the city’s finances Wednesday.

Hamtramck city officials actually asked for the state review. The tiny enclave within Detroit has struggled financially for many years.

Comedy Central / screen grab

Former New York Times reporter, current Fox TV reporter (WJBK), and author  Charlie LeDuff appeared on Comedy Central's Colbert Report last night to promote his book Detroit: An American Autopsy.

When Colbert asked "what is the cause of death" in Detroit, LeDuff responded:

"White flight, black flight, business flight, job flight, we even have dead flight.”

"Dead people will not stay in Detroit?!"

"It's gotten so bad... people who grew up in Detroit and who now live out in the suburbs and are afraid of it - about 1,200 in the last five years - they've gone and got grandma, exhumed her, and brought her out to the suburbs to visit her."

Here's the video:

The Colbert Report
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Steve Carmody/Michigan Radio

LANSING, Mich. (AP) - A lawsuit seeking to block the appointment of Detroit emergency manager Kevyn Orr has been dismissed.

Activist Robert Davis said Monday that the lawsuit became "moot" when a Lansing Circuit Court judge refused last month to hold a hearing before Orr's hiring by the state's Emergency Loan Board.

Davis says both parties stipulated that the suit be dismissed "based on a pending case" before another judge to invalidate Orr's appointment.

The highways around Detroit are being used for displays of civil disobedience over the emergency manager law.

It started last month, and has carried to opening day.

MLive's Gus Burns writes that he was on his way to cover opening day for the Tigers this morning when he decided to tag along with the protestors.

Paul Hitzelberger / United Photo Works

Time now for our weekly check-in with Detroit News business columnist Daniel Howes.

On Dan's mind today is Detroit's emergency manager, Kevyn Orr, who has been on the job for less than two weeks.

So far Orr has kept salaries intact for the Mayor and City Council and has allowed them to keep meeting.

As Howes talks with business leaders and others, he has been hearing the reviews they have been giving to Orr in these first days.

Recently, he had the opportunity to sit down with someone who knows what kind of challenges Kevyn Orr faces.

Joseph Harris, the former emergency manager in Benton Harbor and Detroit's auditor general for 10 years, has a lot of knowledge when it comes to building bridges and reaching out to business and foundation leaders.

His advice for Orr, "get moving like your hair is on fire."

Today, we get to hear, what advice Harris has given to Orr when it comes to addressing Detroit's financial problems.

To hear more from Daniel Howes, his column is in today's edition of the Detroit News.

To listen to the full audio, click the link above.

Steve Carmody/Michigan Radio

Michigan’s credit rating is getting a boost.

The state of Michigan’s credit rating has taken a bit of a beating in recent years.

But the credit rating agency Moody’s this week revised its opinion of Michigan bonds from ‘stable’ to ‘positive.’

Moody’s is giving the state credit for rebuilding its financial reserves and running structurally balanced budgets. 

A State Treasury spokesman says the hope is the change may help the state get a better rate for an upcoming $200 million school bond issue.  

Marlon Phillips / Michigan Public Radio

Today's the day.

It's the day the state's new emergency law goes into effect - the day current 'emergency financial managers' become 'emergency managers.'

Last November, Michigan voters repealed the state's much maligned Public Act 4 (emergency manager law). The majority of voters felt the law put too much power in one person's hands.

Legislators reacted to the repeal by passing a modified emergency manager law (Public Act 436).

It restores a lot of the old powers granted to emergency managers under the old law, but with some differences.

Here are some similarities and differences between the old EM law, and the new one.

Steve Carmody/Michigan Radio

The Flint City Council has taken a first step toward taking back control of the city’s finances.

The council last night unanimously passed a resolution asking Governor Rick Snyder to remove the city’s emergency manager.
 

Flint city officials want the governor to replace the emergency manager with a transition team to phase out state control of the city’s finances over two years.

Steve Carmody/Michigan Radio

The Flint city council is expected to vote tonight on a plan that may set the stage for the city to emerge from state oversight. 

The council will consider asking the governor to appoint a “receivership transition advisory board.”    

Flint Mayor Dayne Walling says the board would guide the city after the departure of the emergency manager.

“This is an area of the law that we want to take advantage of,” says Walling, “We want assistance with our revenue estimates…with budget amendments.”

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