Tagged: morning news roundup

Budget Negotiations

Lawmakers at the state Capitol will continue today to resolve the differences between their various state budgets. The Associated Press reports:

Joint panels of House and Senate members are scheduled to begin formal conferences on the budget Wednesday and Thursday.

The House and Senate have approved different versions of the next budget and compromises must be reached before a spending plan can become law.

A key factor for the overall budget plan will be determining how deep to cut state aid to K-12 schools. Gov. Rick Snyder has proposed an additional $300 per student cut for the fiscal year that starts in October, on top of a $170 per student cut that's already on the books.

Some Senate Republicans are among the many lawmakers seeking to make the school cuts less deep.

Cities want Emergency Managers?

Jackson’s Mayor has asked the state to review the city’s finances. Michigan Radio’s Tracy Samilton reports that’s the first step towards the state appointing an Emergency Manager for the city. From Samilton:

Mayor Karen Dunigan says the city needs the state’s help, even though it has a balanced budget.  She says the budget covers payroll and not much else, and meanwhile, the city has $80-million in debt, with no plan to pay anything on the debt except the interest expenses. The state has also been asked to look at Allen Park’s finances, and Flint’s Mayor says he wants a state review, too. A new state law allows an Emergency Manager to set aside union contracts, along with elected officials' powers.

Obama Job Approval

A new poll finds President Obama's favorability rose among Michigan voters after Osama bin Laden's death. But, as the Associated Press reports, the poll, “finds that most state voters are unhappy with how he's handling the economy. The EPIC-MRA poll released Tuesday showed 53 percent of 600 likely voters polled May 9-11 had a favorable opinion of the Democratic president, up 9 points since February. Forty percent had an unfavorable opinion and 7 percent were undecided. A third gave him a positive job rating on handling the economy, while 66 percent gave him a negative rating and 2 percent were undecided.”

Estimating the State’s Finances

A budget panel is meeting this morning in Lansing to figure out how much money the state has to spend in the fiscal year that begins on October 1st. It was announced on Friday that the state is expected to have half a billion dollars or more in revenue than was previously predicted. Some lawmakers want to use the windfall to roll back proposed budget cuts, including cuts to K-12 schools. Governor Snyder says some of the money should be put towards the state’s emergency savings.

EFM Repeal

A group looking to repeal the state’s new financial manager law is expected to detail their plans today, the Associated Press reports. From the AP:

Michigan Forward says it will talk about the coalition formed to launch the "Campaign to Build Michigan" this morning. The legislation signed into law in March gives state-appointed financial managers broader powers to correct the finances of communities and school districts.

The meeting will take place in Detroit.

McCotter: Not In

Republican Congressman Thaddeus McCotter of Livonia announced over the weekend that he will not run against Democratic Senator Debbie Stabenow for her Senate seat in 2012. Rep. McCotter is yet another Michigan Republican who has decided not to run against Stabenow. Former West Michigan Congressman Pete Hoekstra and former Michigan Secretary of State Terri Lynn Land both have said they will not run. Former Kent County Judge Randy Heckman is the only Republican to announce his candidacy for the seat.

Romney in Michigan

Former Massachusetts Governor Mitt Romney will deliver a speech about healthcare today at the University of Michigan Medical Center in Ann Arbor. Steve Carmody reports:

The Republican presidential contender is expected to outline a path away from the nation’s recently enacted health care reform law… Romney has been extremely critical of the health care law enacted last year, even though it’s very similar to the law he enacted as governor of Massachusetts. Romney’s speech will address his proposal to replace the law.

Declining Profits at Toyota

Toyota announced yesterday that its fourth-quarter profit fell by 77%. Reasons for the decline include the strong yen versus the dollar that eroded Toyota’s profits overseas and the fact that the automaker’s global production plummeted after March’s earthquake and tsunami. Meanwhile, the Associated Press reports that Toyota says, “its North American production will rise to 70 percent of normal in June as the company begins to recover from parts shortages caused by the earthquake in Japan"

Lawmakers Continue Debate on Tax Reform

It appears Republican leaders in the state Senate are facing a difficult challenge in trying to win approval for Governor Rick Snyder’s tax overhaul. Laura Weber reports:

The tax reform plan has been before a Senate committee this week, but there have been no votes on the measure. Republican Senators on the panel walked in and out of hearings, which may signal they weren’t ready for a vote.  The tax plan is controversial. It would eliminate the Michigan Business Tax in favor of a profits-tax on some corporations, reduce the state Earned Income Tax Credit, and tax some future pensioners. Senate Majority Leader Randy Richardville says he still hopes the Senate will vote on the package this week.

GM Announces New Investments

General Motors announced yesterday it will invest a total of $2 billion in 17 of its U.S. plants. The investment means the automaker will re-hire its 1,357 laid-off workers, and possibly hire hundreds of new workers, especially if demand for GM cars continues to improve. The announcement was made at GM’s Toledo Transmission plant.

Unhappy With Snyder

A new EPIC/MRA poll is out and it shows Michigan voters are unhappy with Governor Rick Snyder. Snyder’s disapproval rating is at 60%, that’s compared with a disapproval rate of 36% percent just two months ago. And, disapproval of his job performance seems to have influenced how votes view Snyder personally. "More voters have an ‘unfavorable’ opinion of Governor Snyder today than they did back in February. In February, the poll showed 44% ‘favorable’ and 27% ‘unfavorable.’ Today, the poll shows 41% ‘favorable’ and 43% ‘unfavorable,'" Mark Brush reports.

EITC (Partially) Restored

Governor Snyder's administration has agreed to restore a reduced version of the state income tax credit for working poor families, Rick Pluta reports. From Pluta:

The reduced tax break will allow families that qualify to claim 6% of the federal earned income credit on their state taxes. In the past families could claim 20%. Snyder's original proposal called for elimination of the credit... Families eligible for the state credit in 2009 claimed an average of $432 per household. The Michigan League for Human Services says the reduced credit will still allow eligible families to take $140 off their 2011 tax bill, or add part of it to their return.

Funds for High Speed Rail

Michigan has been awarded almost $200 million for high speed rail projects. Transportation Secretary Ray LaHood was in Detroit yesterday to make the announcement. Governor Rick Snyder, Detroit Mayor Dave Bing and other Michigan lawmakers were on hand. The money will help pay for upgrades to a stretch of track between Detroit and Kalamazoo. The improvements will also help speed-up trains to 110 miles-per-hour. Michigan received the funds after Florida’s governor turned the money down.

State Senate to Take-Up Snyder Tax Measure

A Michigan Senate panel is set to hold a hearing on a broad tax proposal that's a key part of Governor Snyder’s strategy for the state, the Associated Press reports. From the AP:

The Reforms, Restructuring and Reinventing Committee is scheduled to take testimony Tuesday on legislation that would cut overall business taxes and lead to taxes on certain types of retirement income.

The Republican-led House passed the main bill in the package by a 56-53 vote last month. The legislation will face a tough challenge in the GOP-led Senate because some Republicans already have come out against it…

Democrats generally oppose the plan.

Another Round of Federal Funds for Education

Michigan and other states may soon compete against one another to try to win a new round of grants from the U.S. Department of Education, Jennifer Guerra reports. From Guerra:

Congress allotted another $700 million to Race to the Top, the education reform program where states compete for federal grants. It’s not clear just yet how the money will be used, but some analysts say it’s likely the money will go toward improving early education.

John Austin is president of the Michigan Board of Education. He says "early childhood education expansion of pre-K to all interested is a fantastic investment." It would cost about $300 million to expand pre-K and kindergarten access to all children in Michigan, says Austin.

So far, the U.S. Department of Education has awarded 13 states and the District of Columbia Race to the Top funds. Michigan has yet to win any Race to the Top money.

House Passes School Funding Measure

The state House passed legislation late last night that cuts funding to public schools, community colleges, and universities for the fiscal year that begins October 1st. The measure also sanctions universities that offer domestic partner benefits to their employees. The legislation cuts per-pupil funding by between $256 and $297. The bill passed by the state House last night is different from an education-funding bill that was passed in the state Senate. The differences will have to be reconciled before a final education funding measure is sent to Governor Snyder for his signature.

Benton Harbor Officials Want EFM Void

Elected city leaders in Benton Harbor are calling on Governor Snyder to remove the city’s state-appointed emergency financial manager. Lindsey Smith reports:

Snyder approved broader powers for emergency financial managers earlier this year. Benton Harbor’s city commission adopted a resolution (full resolution available here) declaring those new powers unconstitutional.

On Thursday, Benton Harbor’s emergency financial manager Joe Harris rescinded that and any further resolutions adopted by elected city officials (full order available here), in accordance with an order he issued earlier this year.

Harris stripped power from elected city officials in March. That included the power to adopt resolutions, even non-binding ones.

Swimming to Return in the Kalamazoo River?

Michigan health officials might lift a no-contact order on areas of the Kalamazoo River in Southwest, Michigan. The order, put in place after more than 800,000 gallons of oil spilled into the river last July, bans swimming, boating and fishing. Michigan officials are studying the effects of the spill and, if reports are positive, the no-contact order could be lifted.

GM Sales

General Motors has released its first quarter-net income… and it’s good news for the automaker.  The Associated Press reports:

General Motors says its first-quarter net income more than tripled on strong car sales in the U.S. and China. The company's first-quarter net income totaled $3.2 billion… one of its best performances since the SUV boom in the early 2000s. It was GM's fifth straight quarterly profit since late 2009, the year it emerged from bankruptcy. Quarterly revenue rose 15 percent to $36.2 billion. Worldwide sales climbed 12 percent, including a 25-percent jump in the U.S.

House Votes on Budget

The state House passed a $33 billion budget bill yesterday. As the Associated Press reports, the measure covers spending for everything except education. From the AP:

Lawmakers were deeply divided Wednesday on the measure, which closes prisons, drops 12,600 families from welfare and cuts senior services.

Majority Republicans say the budget puts the state on sound financial funding without using one-time fixes.

Minority Democrats say the bill cuts important services such as job training.

It includes $7 billion in general fund spending and passed 62-48, largely along party lines.

The bill must be reconciled with spending bills already passed by the Senate.

DPS Gets a New EM

Governor Rick Snyder has appointed a new Emergency Financial Manager for the Detroit Public Schools. Snyder announced the appointment of former GM Executive Roy Roberts to replace current Emergency Financial Manager Robert Bobb yesterday. Michigan Radio’s Sarah Cwiek reports, “Roberts has had a distinguished career in business and is considered a pioneer for African-Americans in the auto industry. Snyder says he chose Roberts because he’s a ‘successful businessman and team builder.’ Roberts says he’s genuinely ‘excited’ to tackle the daunting task of improving Detroit schools.” Bobb’s contract expires at the end of June.

Snyder to Deliver Education Address

Governor Rick Snyder will deliver an address about education reform this morning in Detroit. It’s being reported that the Governor will propose tougher education requirements for new teachers. Snyder has also said more attention should be given to children from before birth through their graduation from college. Snyder offered some hints as to what he might say today in an address earlier this week to an education conference in East Lansing. On Monday, the governor said student test scores are both “startling and scary.” He says he wants to relax school regulations to give teachers and principals more freedom and responsibility over educational decisions.

Severe Weather

Officials plan to survey parts of northern Allegan County to determine whether a tornado or high winds caused damage in the area, the Associated Press reports. From the AP:

The National Weather Service says the survey is planned for Wednesday in southwestern Michigan following damage from storms that moved through the state Tuesday evening. Two barns housing 40,000 turkeys at DeBoer Turkey Farm in Allegan County's Salem Township were toppled by the storms.

The Grand Rapids Press reports about a dozen other sites in the county were damaged…

The weather service says the storms also produced heavy rain that flooded some low lying areas. More rain was expected through Thursday, bringing with it the risk of more flooding.

Now Is the Time to Pay-Up

People and businesses that owe back taxes to the state of Michigan have until June 30th to pay up without paying fines and penalties, Rick Pluta reports. There are potentially hundreds of thousands of people and businesses that owe the state unpaid taxes. From Pluta:

The state hopes to net $90 million dollars from the tax amnesty program.  State Treasurer Andy Dillon says if you owe, now is a good time to pay, "It doesn’t matter why you didn't pay your taxes – the penalties can be forgiven. And the penalties can be quite stiff. It depends on the tax that you’re talking about, but it can be as much as 25% of the liability that can be forgiven, and the sooner you pay it off, the sooner you stop paying interest on that obligation."

This is the third time since the 1980s the state’s offered amnesty to people and businesses with unpaid back taxes.

Snyder Plans Education Address

Governor Rick Snyder is expected to outline some of his ideas on school reform in an address to a conference of educators in East Lansing today. Snyder will offer even more details on his ideas for education in the state when he delivers a message to the legislature later this week. A senior advisor to the Governor says Snyder will say everything from better pre-natal care to an improved higher education system have to be part of a plan for fixing schools, Rick Pluta reports.

Big Cuts for Corrections?

Michigan Senate Republicans say the Department of Corrections could save tens of millions of dollars by making sure all prisoners are parole-eligible as soon as they have served their minimum sentences, Laura Weber reports. From Weber:

Republican state Senator John Proos who chairs the Senate panel that oversees the Department of Corrections budget, says that means making sure prisoners have taken their necessary prisoner reentry programs in time for their parole hearings. Proos says additional savings can be found in the department by privatizing food services and mental health services for prisoners.

Study Programs Continue in Japan

The University of Michigan says its study programs in Japan are on track due to a revised U.S. State Department policy, the Associated Press reports. The AP explains, “The agency had previously warned Americans against traveling to Japan following last month's earthquake and the nuclear accident that followed. The school says students must make sure they follow the university's international travel rules.”

Snyder, GOP Leaders Come to Tax Agreement

Governor Rick Snyder and Republican leaders in the state House and Senate outlined a tentative tax agreement yesterday afternoon in Lansing.  The plan includes a compromise on taxing retiree pensions. From Rick Pluta:

Michigan is one of just a handful of states that does not tax pensions. The deal between Governor Snyder and GOP leaders would shield people 67 years old and older from a pension tax. The governor originally wanted to tax all pensions, but he says compromises were necessary.

The plan also calls for scrapping the complicated and unpopular Michigan Business Tax in favor of a corporate income tax. That’s part of an overall tax cut for most businesses to spur job creation.

The plan would eliminate the tax break for working poor families, but offer some new tax relief for low-income homeowners and renters.

The plan must still be approved by the House and the Senate.

Bing Outlines Budget

Mayor Dave Bing proposed his budget for Detroit yesterday. The mayor warned that the city’s unions will have to make contract concessions in order to keep Detroit out of the hands of a state appointed Emergency Financial Manager. The city is facing a $155 million budget deficit. Bing said the deficit could grow to over a billion dollars in the next five years unless cuts are made now. Bing proposed $200 million in cuts and revenue in his budget proposal.

New Auto Jobs

The Detroit Three are poised to create new auto jobs for the first time in years, Tracy Samilton reports.  But, Sean McAlinden, an economist at the Center for Automotive Research, says auto manufacturing jobs will never recover to their former levels. McAlinden says the Detroit Three will likely hire 35,000 people in the next five years. That’s only about a third of the people who lost jobs with the auto companies in the past few years.

They’re back… Lawmakers Return to Lansing

State lawmakers will be back in Lansing today after a two-week Spring break and it looks like they have quite a bit on their agenda. Budget-related subcommittees in both the House and Senate are scheduled to meet today. Governor Rick Snyder says he wants lawmakers to finish the budget by May 31st. Many lawmakers, however, say they don’t think the budget process will be finished before this summer.

And, a state House panel will begin the process of redrawing the state’s political maps. The latest census numbers show Michigan will lose a Representative in Congress. As Laura Weber reports, the redistricting process will work like any other law that is approved by the Legislature and then moves on to Governor Rick Snyder for his signature.

Bing to Present Budget

Detroit Mayor Dave Bing will present his budget for the city later this morning. The Associated Press reports the budget will propose a five-year plan to wipe out the city's $150 million budget deficit. From the AP:

Tuesday morning's presentation is the first step in the city's budget approval process heading into the new fiscal year that starts July 1…

Bing has fought often with city unions over concessions designed to cut into the deficit.

A union protest of Bing's proposed 2011-12 budget is planned Tuesday's afternoon outside the Coleman A. Young Municipal Center.

Fiat Wants More of Chrysler

Fiat could increase its ownership stake in Chrysler this week, Tracy Samilton reports. Eventually, Fiat hopes to own a majority of Chrysler. Samilton explains:

In 2009, the federal government agreed to give Fiat 20% of Chrysler in return for taking over management of the Detroit automaker.  The deal also set up incremental steps by which Fiat could reach 51%. Fiat CEO Sergio Marchionne says he expects Fiat’s stake to grow to 30% this week, after meeting a requirement to increase sales of Chrysler vehicles outside North America. 

Gas Prices Continue to Rise

An average gallon of gas in Michigan is now $3.86, nearly $1.00 more than it was at the same time last year.  A spokesperson for AAA Michigan says this is the 8th weekly increase in gas prices this year. Ann Arbor had the state's highest per-gallon gasoline at $3.89. The Lansing area had the lowest price at around $3.76 a gallon. It could be worse, however: gasbuddy.com reports that some areas of California are seeing gasoline go for over $4.10 a gallon.

MI Keeping Close Eye on Federal Budget

Governor Rick Snyder’s administration is keeping a close eye on the showdown over the federal budget in Washington, the Associated Press reports. From the AP:

Snyder's administration says it expects most state services will continue with minimal or no disruption if a brief federal government shutdown happens…

Key factors influencing the possible effects of a shutdown would be how the federal government defines essential services and how long a shutdown might last…

Michigan's unemployment insurance agency says it expects benefits would continue to be paid to jobless workers, including the roughly 150,000 who now receive benefits under federal programs.

Michigan has about 52,000 federal government employees, including about 22,000 postal employees.

Gas Prices Continue to Rise

Gasoline prices in Michigan continue to edge closer to $4 a gallon and the raising prices are affecting retailers and customers, Steve Carmody reports. The increasing fuel costs are expected to not only increase the cost of filling up gas tanks, but food prices are expected to rise by 3 to 4 percent this year. Carmody reports the biggest increases will be seen in meat, dairy and coffee products. The price of fuel is expected to continue to rise through Memorial Day.

Music from DSO to Be Heard Again

The Detroit Symphony Orchestra is scheduled to begin rehearsals later this morning. The DSO musicians had been on strike for six-months prior to agreeing to a new, tentative agreement with DSO management earlier this week. The first concert by DSO musicians since the strike began last October is scheduled for Saturday night.