morning news roundup

News Roundup
8:24 am
Wed April 13, 2011

In this morning's news...

Morning News Roundup, Wednesday, April 13th
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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.

News Roundup
8:53 am
Tue April 12, 2011

In this morning's news...

Morning News Roundup, Tuesday, April 12th
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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.

News Roundup
9:08 am
Thu April 7, 2011

In this morning's news...

In this morning's news, Thursday, April 7th
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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.

News Roundup
8:53 am
Thu March 31, 2011

In this morning's news...

Morning News Roundup, Thursday, March 31st
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Snyder to Deliver Progress Report

Governor Snyder plans to deliver a progress report on his first 90 days in office later this morning in Lansing. Lt. Governor Brian Calley, state Senate Majority Leader Randy Richardville, and state House Speaker Jase Bolger will join him. It’s expected the Republican leaders will address their plans for the state’s budget. The Governor has previously asked the legislature to balance the state’s budget for the next fiscal year by May 31st.

Dems to Propose Reinstating Jobless Benefits

Two Democratic state lawmakers are preparing legislation that would restore cuts to unemployment benefits. On Monday, Governor Snyder signed legislation to extend federal jobless benefits this year by 20 weeks, but the bill also contained a provision reducing state unemployment benefits from 26 to 20 weeks for new filers beginning in 2012.

Michigan Court Rules Against CAFO Operators

Large factory farms have lost a major court case in the Michigan Court of Appeals, Steve Carmody reports. The case involves farming operations, called Confined Animal Feeding Operations (or CAFOs), with hundreds, sometimes thousands of animals. Carmody reports:

The appellate court upheld a lower court ruling that the state could require large confined animal feeding operations to get pollution discharge permits before opening. Farm groups challenged the state rule insisting they should only need a permit after releasing manure causing water pollution.  But today, the three judge panel disagreed:

“We conclude that the DEQ was fully authorized to require CAFOs to either (1) seek and obtain an (federal) permit (irrespective of whether they actually discharge pollutants), or (2) satisfactorily demonstrate that they have no potential to discharge.  The circuit court  properly denied plaintiffs’ motion for summary disposition and granted summary disposition in favor of the DEQ.”

Reorganization in the Detroit Public School System

Thousands of kids in the Detroit Public Schools system could see their school close or become a charter school next fall, Sarah Hulett reports. Yesterday, DPS Emergency Financial Manager Robert Bobb laid out his reorganization plan. As Hulett explains, the plan calls for:

… closing seven schools this summer and one next summer. Another 18 schools will close by the fall unless a charter school operator can be identified to run them. And 27 more schools will be offered for conversion to charter schools, but will remain open otherwise…The list of 32 schools is fewer than half the troubled school district will have to close or convert to charters to erase a $327 million dollar deficit.

News Roundup
9:00 am
Wed March 30, 2011

In this morning's news...

Morning News Roundup, Wednesday, March 30th
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So-Long Price Tags

Retailers will no longer have to put price tags on almost every individual item they sale. Governor Snyder signed a bill yesterday that repeals the requirement. Michigan was the only state in the country to have such sweeping price tag laws, Rick Pluta reports. Item-pricing was popular with much of the public. The law just signed by the Governor has a provision that makes sure the new law cannot be reversed by a citizen referendum, Pluta reports.

Shared Sacrifice Among Lawmakers

Republican state Senator Rick Jones has introduced a bill that would require state legislators to pay 20 percent of their health insurance premiums. With the state facing a $1.4 billion budget deficit in the coming fiscal year, Governor Snyder wants state employees to  pay 20 percent of their health care insurance and, so, Senator Rogers thinks state lawmakers should have to do the same. Senator Jones has also introduced a bill to alter the lifetime health insurance that legislators receive after serving only six years, calling it “obscene,” Tracy Samilton reports.

Price of Homes Continues to Fall

Homes values in Metro Detroit declined to a new low in January. From the Detroit News:

Among the 20 major cities surveyed for the S&P/Case-Shiller Home Price Index, Detroit ranked last with an index of 66.02. The region's previous low was 66.47 in December. Case-Shiller uses home values from January 2000 as a starting point of 100 — anything higher shows a gain, and anything lower is a loss. Compared with other major cities, Detroit is much lower.

According to Home Price Index, home values in Metro Detroit are the lowest since 1993.

News Roundup
9:10 am
Thu February 10, 2011

In this morning's news...

Presidential Visit

President Obama will visit Northern Michigan University in Marquette today. He’ll be in the Upper Peninsula to promote his administration’s National Wireless Initiative. The program, first announced during last month’s State of the Union Address, would bring high speed wireless internet access to 98 percent of the nation’s population within five years. The initiative is part of the White House’s new focus on innovation and competitiveness as a way to, “win the future.”

Snyder to Outline Budget Next Week

Governor Rick Snyder will unveil his budget proposal for the fiscal year that begins October 1st, next Thursday, February 17th. The state faces a projected $1.8 billion dollar budget deficit for the next fiscal year. “Snyder says he plans to ask lawmakers to wipe out billions in business tax exemptions… Lt. Gov. Brian Calley told the Holland Chamber of Commerce on Tuesday that the administration is counting on $2 billion from such cuts,” The Associated Press reports.

Profit-Sharing Check Going Out to GM Workers

Some 45,000 General Motors’ workers are expected to receive profit-sharing checks from the automaker. The company will release the amount of the checks soon, Mark Brush reports. It’s being reported the checks will be at least $3000 each. Other automakers are also sharing the wealth: Ford announced profit-sharing checks of more than $5000 and Chrysler is giving its workers $750.

News Roundup
8:36 am
Tue February 8, 2011

In this morning's news...

Kids Count

A new report published by the Michigan League for Human Services shows there has been an increase in child abuse and neglect cases in the state. The annual Kids Count report also shows an increase in the number of children living in poverty. There are, however, some bright spots in the report that show a continued decline in teen births and high school dropout rates.

Mayor Bing Announces Residential Incentives

Detroit Mayor Dave Bing announced a new incentive program yesterday to get more Detroit police officers to live within the city. The project’s pilot phase will give officers the chance to buy a tax-foreclosed home and to be eligible to receive federal funds to restore them, Sarah Cwiek reports. Currently, fewer than half of the city’s police force live in Detroit.

Flint Looks to State for Help

The city of Flint, currently facing a multi-million dollar budget deficit, has applied for state permission to get a $20 million fiscal stabilization bondFlint mayor Dayne Walling says the city needs the money to help keep the city afloat. If the city doesn’t get the funds, the state may eventually takeover Flint’s finances, Steve Carmody reports.

Presidential Visit

President Obama will visit Marquette in Michigan’s Upper Peninsula on Thursday to talk about the national wireless initiative. In a press release, the White House says:

In his State of the Union Address, the President called for a National Wireless Initiative to help businesses extend the next generation of wireless coverage to 98 percent of the population.  The next generation wireless network in Marquette is an effective demonstration of how the President’s proposal to open up airwaves will spark new innovation, put people back to work, grow the economy and help America win the future.

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