Michigan Department of Treasury

Steve Carmody / Michigan Radio

The state of Michigan wants online shoppers to save their sales receipts.  

They may need them at tax time.

The growth of online sales has meant a bigger loss of sales tax revenue in Michigan.  

The state expects to lose $440 million in unpaid sales tax on remote sales, mainly online.

“Oftentimes people think that this is a new tax.  It certainly isn’t,” says Treasury Department spokesman Terry Stanton. “It’s been on the state’s books since 1930s.”

Vacant lot in Detroit.
University of Michigan School of Natural Resources & Environment / Flickr

This Week in Review, Jack Lessenberry and Rina Miller discuss Gov. Rick Snyder’s Asia trip, the financial status of Michigan’s schools, and a new plan to sell Detroit land.


MichigansChildren / YouTube

State Superintendent Mike Flanagan says the consequences of turning entire school districts over to for-profit charter school companies deserves more consideration from state lawmakers.

Flanagan told a state panel last week it’s not clear if the Muskegon Heights school district, or the for-profit charter company that ran it the last two years, will face any consequences for running up a deficit big enough to require an emergency loan worth $1.4 million and two cash advances to keep schools open through June. It’s unclear exactly what the deficit is for the 2013-2014 school year.

The Muskegon Heights school district is now looking for a new operator. That’s after the district and its emergency manager agreed to end its contract with Mosaica Education Inc. when the company couldn’t turn a profit.

“Now that (Mosaica) is leaving, they pretty much told us they’re not going to do (the district’s) deficit elimination plan. To follow up on that, we should wait for the new management company and deal with them,” Dan Hanrahan, Michigan Department of Education’s director of state aid and school finance, told the panel.

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.

Lindsey Smith / Michigan Radio

State officials and the Muskegon Heights School Board are trying to figure out how they’ll be able to pay staff for the rest of this school year, although the district’s emergency manager is “confident” they’ll work something out.

Associated Press

More than two months ago, former State Treasurer Andy Dillon resigned, clouded in controversy.

Today, word leaked out that Dillon is still on the state payroll – and has been since November 1 – still pulling down his full salary of $174,204 for training his successor, Kevin Clinton.

Zoe Clark, co-host of Michigan Radio's It's Just Politics joins us to talk about the controversy, along with Lester Graham of Michigan Watch.

Listen to the full interview above.

Steve Carmody/Michigan Radio)

Cities across Michigan are closely watching what happens to Detroit in bankruptcy court this week.

More than a dozen Michigan cities and school districts are currently under some form of state oversight.

Michigan.gov

Gov. Rick Snyder says Insurance and Financial Services (DIFS) Director Kevin Clinton will succeed departing Treasurer Andy Dillon next month.

Kevin Clinton will play an important role in the state’s financial intervention in struggling cities and schools. He admits he’ll have a lot of catching up to do when it comes to Detroit’s historic bankruptcy filing.

User: Brother O'Mara / Flickr

A push for change in Michigan term limits

There are efforts underway to change Michigan’s term limits amendment. Representative Joe Havemen (R-Holland) says the current lifetime limit of six years to serve in the House and eight years in the Senate are too short and consequently, legislators are lacking experience. Term limits were approved by Michigan voters ten years ago, and changing that amendment would also require voter approval.

Town hall to be held for road repairs

Lawmakers are expected to discuss how to pay for improvements to the state’s roadways at a town hall meeting tonight in Grand Rapids. Michigan Radio’s Lindsey Smith reports, "the public will get a chance to weigh in on Governor Snyder’s proposal to raise more than a billion dollars a year. Snyder wants to raise vehicle registration fees and the gas tax to cover the costs, but the Legislature passed a budget last week that only included a fraction of the money he wanted."

Michigan faces class action lawsuit from students

The state of Michigan may be facing a class action lawsuit over a student loan program. Starting in 2003 the Michigan Students First program provided a subsidy to people after they paid their first 36 loan payments on time, but that subsidy ended in 2010. Attorney Jeff Hank says that left thousands of Michiganders with much more to pay on their student loans. Michigan Radio's Steve Carmody reports that the lawsuit could end up costing the state hundreds of millions of dollars.