Tagged: morning news roundup

Flint EM Presents Budget

Next year, the city of Flint will charge residents higher fees in exchange for less services. The budget plan unveiled last night was greeted with anger from city residents and city council members. Steve Carmody reports:

The Flint city budget plan calls for trimming 20 percent of city government workers from the payroll... The plan also raises city sewer and lighting fees. The average property owner will pay an additional $200 in city fees in fiscal year 2013. Emergency manager Michael Brown says the spending cuts and fee hikes are needed to close a $25 million gap in next year’s budget. The city of Flint also wants the state to let it sell $18 million in bonds to pay off the city’s past debt. Brown says he hopes to hear back from the state on the fiscal stabilization bond request sometime next month. Brown says there’s no other way for Flint to close out the debt that the city’s accrued over the past two years.

Detroit Light Rail

A group with plans to build a privately funded light rail line in Detroit says it has the money it needs to construct it, and to run it for ten years. Backers laid out their case in a feasibility study submitted to the federal government. “The M-1 rail line would run along a three-mile stretch of Woodward Avenue in Detroit. Supporters say it’s an important project – especially at a time when the city of Detroit is cutting back dramatically on its spending. The project was nearly derailed late last year – after Detroit Mayor Dave Bing and Governor Rick Snyder pulled their support in favor of a rapid bus system. The mayor and governor now say they think both projects should move forward... Construction is expected to begin in early 2013, and be completed in 2015,” Sarah Hulett reports.

More Options to Stop Carp

The U.S. Army Corps of Engineers has added three options to a list of possible measures for preventing Asian carp and other invasive species from entering the Great Lakes from the Mississippi River, the Associated Press reports. From the AP:

In December, the corps released a draft report suggesting methods such as overfishing, ultraviolet light, water guns and introducing native predators in Chicago-area rivers and canals that link the two massive aquatic systems. A final version issued last week also raised the possibility of freezing or drying sections of the waterways, or zapping organisms with carbon dioxide pellets. Next, the corps will decide which options merit further consideration. The report is part of a series as officials develop a strategy for halting species invasions of the Great Lakes, possibly including permanent separation of the two drainage basins.

Statewide Education Conference

State officials and educators will gather today in East Lansing for the 17th annual Governor’s Education Summit. “Last year, Governor Rick Snyder called for an overhaul in how students are educated. This year, organizers say they’ll examine ways to build an education system that begins with pre-school and continues to college or post-secondary job training,” Rick Pluta reports. Lt. Gov. Brian Calley will address the conference this morning.

Budgeting Detroit

Detroit’s budget process gets started in earnest this week. Sarah Cwiek reports:

The Detroit City Council will dig into a detailed version of Mayor Dave Bing’s proposed budget for the first time today. Everyone acknowledges it will be a painful, multi-year process of cutting city spending – as outlined in Detroit’s consent agreement with the state. State and city officials have said Detroit needs to focus on delivering its “core services” effectively – and slashing or even ending most others. The proposed budget would eliminate the city’s health, human services, and workforce development departments.

Frost Damage to Cherry Crops

Northern Michigan's tart cherry growers are starting to report serious damage from a hard freeze that followed a late-winter heat wave, the Associated Press reports. From the AP:

A week-long hot spell in mid-March triggered widespread budding well ahead of normal. Then typical cold weather returned, with temperatures dipping into the 20s on the night of March 25th. Longtime Leelanau County fruit farmer Dave Alpers has 550 acres of tart cherries and 100 acres of sweet cherries in Leland and Suttons Bay townships, about 15 miles north of Traverse City. He tells the Traverse City Record-Eagle that he's finding 80 to 90 percent of the buds on the area's tart cherries have been killed, as have about 40 to 60 percent of the apple buds. The northwestern Lower Peninsula produces about four-fifths of U.S. tart cherries.

Struggling School Districts

Michigan school districts are struggling with growing budget deficits and even relatively wealthy districts are facing unprecedented cuts. Jennifer Guerra reports:

The Ann Arbor Public School district faces a $17.8 million deficit. The district's budget for the 2011-12 school year is $183 million. Deputy Superintendent of Operations Robert Allen met with the district's Board of Education on Wednesday, where he laid out three possible plans to deal with the deficit in Ann Arbor – each one progressively more severe. Ann Arbor School Board president Deb Mexicotte says the cuts are "reaching the bone," and "if you keep cutting, you’re going to reach the place where you can no longer maintain what you do well." The major difference between Ann Arbor and many other struggling school districts is that Ann Arbor has around $18 million in so-called "rainy day funds" from which it can pull.

Detroit Finances

Governor Snyder’s office released the names of three members appointed to the Detroit Financial Advisory Board yesterday. The consent agreement the city signed with the state earlier this month calls for the creation of the nine-member board which will have oversight over the city’s finances. “Former state Treasurer Robert Bowman, currently president and CEO of Major League Baseball Advanced Media LP, is the joint appointee of Snyder and Bing. Darrell Burks, currently a senior partner at PricewaterhouseCoopers, will be one of three individuals appointed by Gov. Snyder, and Ken Whipple, chairman of the board of Korn/Ferry International, is Treasurer Dillon’s appointee to the FAB,” a press release from the Snyder administration explains. Six appointments to the board are left.

Pontiac EM's Water Plans

Pontiac Emergency Manager Louis Schimmel says Oakland County has agreed to issue $55 million in bonds for the municipal water and wastewater treatment systems, helping the city get out of debt, the Associated Press reports. "The plan would make the water system a stand-alone public corporation. Schimmel said Thursday that the move is projected to save about $52 million over 30 years. He says the savings plus the $55 million in cash will hasten his departure, "which should make some people happy. Schimmel says he may be able to finish reorganizing Pontiac's finances this this year, rather than in 2013," the AP reports.

Presidential Visit

President Obama made a broad, impassioned case for his re-election in Metro Detroit yesterday. Sarah Cwiek reports:

The President resurrected the “change” theme of his 2008 campaign. He said change is a slow process. But he touted some milestones of his first term, including health care reform and the resurgence of the U.S. auto industry. The Henry Ford Museum hosted the first of the two Metro Detroit fundraisers for the President. He then moved on to a private fundraiser at the Bingham Farms home of businesswoman Denise Ilitch. The top price for a ticket there: $40,000.

The President was last in the state in January when he spoke about college affordability at the University of Michigan campus in Ann Arbor.

Snyder in Afghanistan

Governor Snyder made a surprise trip to Afghanistan this week to meet with Michigan Air and Army Guard units. The trip was organized by the U.S. Department of Defense. In a conference call with reporters yesterday, Snyder said the trip made him more committed to helping returning veterans.“I can tell from the experiences that I’ve had, it just makes me even more determined to say, for the hard work, the wonderful effort our service people are doing for us in all these countries, we need to a better job of helping them find a job, their health care.” Snyder, along with the Governors of Rhode Island and South Dakota, first stopped in Kuwait and, after his stay in Afghanistan, will travel to Germany before returning back to Michigan.

Calley Signs Autism Bill

Lieutenant Governor Brian Calley signed a bill into law yesterday that will require insurance companies to cover childhood autism treatments. Rick Pluta reports:

Calley signed the bill to the applause of families and activists who’ve spent years lobbying for the coverage mandate. The issue is a personal one for Calley, who has a daughter with autism. He says early treatments help autistic children grow up to be self-sufficient and will save taxpayers money on special education and public assistance. Calley says there will also be more and better services for families now that autism specialists know their services will be covered. He says the administration has not taken a position on extending the coverage mandate to mental health conditions.

The lieutenant governor signed the legislation because Governor Snyder is overseas.

Personal Property Tax

A plan was unveiled yesterday at the state Capitol to phase out the tax on most manufacturing equipment. Rick Pluta reports:

Local governments collect about $400 million in revenue a year from the industrial property tax, also known as the personal property tax. Lieutenant Governor Brian Calley helped design the plan to get rid of the tax over the next several years. He says Michigan is unique in how it taxes industrial property - and he says it’s driving investments to other states and countries. But local leaders say the way the phase-out is drafted now, it would force disinvestment in schools, and city services. That’s because it does not replace all the revenue lost to local governments. The communities that would be most affected are industrial cities with the most factories.

Kalamazoo River Opens

Calhoun County Health officials are opening up a three mile section of the Kalamazoo River near Marshall this morning. It’s the first time the river has opened to the public since more than 800,000 gallons of oil spilled into the river in July 2010. “It’s just a tiny portion of the 37 total miles of the river that have been closed since the underground Enbridge pipeline ruptured. Crews have recovered more than a million gallons of oil from the river. Calhoun County Health officials say people using the river may still see small oil flecks or oil sheen. But they say an assessment of that portion of the river shows it is safe for public recreation. Health officials hope to open the rest of the river to public recreation as soon as July,” Lindsey Smith reports.

Utility Refunds

Customers of DTE Energy Co. and CMS Energy Corp.'s Consumers Energy unit are expected to get a refund soon, the Associated Press reports. From the AP:

The Michigan Public Service Commission on Tuesday ordered DTE and its gas subsidiary MichCon to refund $30.9 million to 2.1 million electric and 1.2 million gas customers. Consumers Energy must refund $25.4 million to its 6.8 million electric and gas customers. The refund is for money collected from customers to support the Low Income and Energy Efficiency Fund, which provides assistance to low-income utility customers. The Michigan Court of Appeals ruled last year that energy legislation didn't include provisions for LIEEF and that the PSC shouldn't administer the program anymore.

They’re Back: Lawmakers Return to Lansing

After a two-week break, lawmakers are heading back to the state Capitol today. And, today’s tax filing deadline has kicked off political sparring over the state’s tax overhaul. “Democrats say a lot of the changes made last year should be reversed. That includes restoring the exemption for pension income. They are also calling to restore a dozen credits and deductions, including the tax breaks for raising children and charitable donations. Republicans say the tax overhaul made taxes more simple and fair and treats all income the same, regardless of its source,” Rick Pluta reports.

President Obama to Visit SE MI

President Obama is scheduled to attend two fundraisers tomorrow in suburban Detroit. The Associated Press reports:

The president plans to attend an evening event at the Henry Ford museum in Dearborn. Later, he's set to appear at the Bingham Farms home of Denise Ilitch. She's the daughter of Mike and Marian Ilitch, owners of Little Caesar's Pizza, the Detroit Red Wings and Detroit Tigers. That event could collect up to $40,000 per donor… The president could raise $1 million at Wednesday's events. Obama last visited Michigan on January 27th when he spoke on higher education funding at the University of Michigan in Ann Arbor.

Engler: Tax Decisions Need to Be Made Quickly

Former Michigan Governor John Engler says politicians in Washington need to make important decisions now, despite the general election coming in November. Engler spoke to a gathering at the Economic Club of Grand Rapids yesterday. Lindsey Smith reports:

Engler says politicians have a lot of tough decisions to make to keep the U.S. competitive globally. That includes decisions on energy and education; but most importantly, he says, decisions about the tax code and the federal deficit. Engler says those decisions need to made as quickly as possible. Engler said lawmakers need to make long-term decisions about the tax code instead of one time quick fixes he says only add uncertainty for U.S. businesses. Engler says uncertainty about energy prices and the future of the new national health care law are also dragging down the economy.

Rehashing the Tax Debate

Democrats at the state Capitol see political opportunity in tomorrow’s tax-filing deadline, and they intend to use it to hammer Republicans on their overhaul last year of the state tax code. Rick Pluta reports:

Democrats believe the issue of taxes is a political winner for them this year. In Lansing, Democrats hope the tax question will turn the odds in their favor to win the nine or more additional seats they need to take control of the state House. Their message will target seniors paying taxes on pension income for the first time and people who take advantage of tax breaks and deductions that won’t be available when they file next year.  At the same, Republicans cut taxes for many businesses. GOP leaders say the sweeping re-write was necessary to streamline and simplify Michigan’s taxes, and free up money for businesses to create jobs. 

Romney Leads Obama in MI Campaign Donations

Federal Election Commission records show Republican Presidential candidate Mitt Romney out-raised President Obama through the end of February, the Detroit Free Press reports. “Obama had raised about $1.6 million in Michigan. That's far more than Obama had raised in the state at this point four years ago, but still less than Romney's $2-million total… Obama and Romney each have one Michigan city that towers above all others for fund-raising power. For Obama, it's Ann Arbor, where his campaign has collected $243,603. At $450,691, Romney's sweet spot is Bloomfield Hills, where he grew up,” the Freep reports.

Amtrak Delays

Amtrak says there will be some train cancelations and delays for three days beginning today on the routes from Chicago to Port Huron and Pontiac, the Associated Press reports. “Amtrak says the service interruptions are necessary to allow track work. It says normal travel times should return by early May. The passenger rail service says certain trains will be canceled Monday through Wednesday, while slowdowns of up to 90 minutes will continue until the work is done,” the Associated Press reports.

MI Foreclosures Decline

Realty Trac is reporting that Michigan’s home foreclosure rate is improving. “Foreclosure filings were down nearly 20% during the first three months of the year compared to the fourth quarter of 2011. The decline was even steeper compared to the same time a year ago. Daren Bloomquist is with Realty Trac. He says nationally foreclosure numbers haven’t looked this good since before the recession started in 2008. Bloomquist expects there will be a spike in new home foreclosures in the second half of the year,” Steve Carmody reports.

Ag Industry Grows

A new Michigan State University study shows Michigan’s agriculture industry has grown dramatically throughout the recession. Lindsey Smith reports:

Agriculture contributed more than $90 billion to Michigan’s economy in 2010. The economic impact of farming, food processing and the supply chain is twice as much as it was in 2004. “(Agriculture’s) critical to what’s happening in the state. And the story about our growth I think is significant versus other sectors of the state’s economy that have clearly been in decline,” said Chris Peterson, director of the MSU Product Center. Peterson says growing demand for food in big countries like China and India are a major factor in agriculture’s growth in Michigan.The latest report shows 618,000 jobs come directly from Michigan’s food and agriculture business sector.

Kalamazoo River Sheen

Officials say material apparently dumped into a storm drain has created a miles-long sheen on the Kalamazoo River. The Associated Press reports:

The Battle Creek Enquirer reports police were notified Wednesday about a possible spill near Albion. Booms were placed in the river to collect the material. Authorities say it appears the unknown material was apparently dumped into a drain at the former Union Steel site… Crews have been working to clean the Kalamazoo River further downstream since a 2010 pipeline rupture spilled more than 800,000 gallons of oil near Marshall.

Conflict of Interest in EM Ballot Challenge?

While state elections officials inspect petitions seeking a referendum that could overturn Michigan’s emergency manager law, one of the key decision-makers could have a conflict of interest. Rick Pluta reports:

One of the people in line to decide the fate of the referendum to challenge Michigan’s emergency manager law has a business interest in the outcome. Jeffrey Timmer is a partner at the Sterling Corporation. Sterling is a political consulting firm that works for the Citizens for Fiscal Responsibility. That’s the group that’s filed several technical challenges to the petition in an effort to keep the question off the ballot…

While his firm tries to stop the referendum, Timmer also sits on the Board of State Canvassers. That’s the bipartisan panel that will make the initial ruling on the challenge. Timmer is a Republican who was appointed to the board in 2009. State elections officials say it is up to Timmer to decide whether he has a conflict and should recuse himself. Timmer did not return phone calls for comment.

EM for Muskegon Heights Schools

Governor Rick Snyder has determined a financial emergency exists in the Muskegon Heights school district. The next step is for the governor to appoint an emergency manager to the district. “Muskegon Heights Schools has run a deficit for at least six years in a row. The deficit is projected to be around $9.4 million by the end of this school year. Student enrollment has dropped by a third since 2006. Unlike any other city or school district, the school board in Muskegon Heights asked for a state takeover back in December. Emergency managers already run two school districts and four cities in Michigan. The City of Detroit is working under the terms of a consent agreement instead of an emergency manager,” Lindsey Smith reports.

High School Graduate Rates Remain Steady

The graduation rate for the high school class of 2011 in Michigan remained relatively steady compared to the previous year, despite new science and math requirements. Jennifer Guerra reports:

Wendy Zdeb-Roper is executive director of the Michigan Association of Secondary School Principals. She says most educators had "a certain degree of trepidation" when the requirements were introduced because they were concerned about graduation rates and how students would fare. According to the Center for Educational Performance and Information, the average graduation rate dropped by only a little more than two percent – from 76 percent in 2010 to 74 percent in 2011. The new high school requirements were approved by then-Governor Jennifer Granholm in 2006.

MI Court Lifts I.E. Suspension

The Michigan Court of Appeals has lifted a lower court order that delayed when two state laws took effect. The case is part of a procedural fight between Democrats and Republicans at the state Capitol. Rick Pluta reports:

State House Democrats sued Republicans for ignoring their motions for record roll call votes on a procedure, known as immediate effect, that allows a law to take effect as soon as the governor signs it – instead of three months after the end of a legislative session. Democrats won a court order last week that says Republicans have to recognize their motions for roll call votes. It also suspended two laws – one that forbids graduate teaching assistants from organizing a union, and another that bars teacher contracts that include paycheck deduction of union dues. The Court of Appeals lifted that order and took control of the case. But there will be another hearing on the case before the Court of Appeals makes a final ruling.

EM Repeal Petition Opposed

The group Stand Up for Democracy has been trying to overturn the state’s emergency manager law… they’re trying to get a measure to repeal the law on the November ballot. They’ve submitted petitions containing more than 225,000 signatures. But, now, opponents of that campaign say those petitions are flawed. "The group Citizens for Fiscal Responsibility says the petitions aren’t legal because the heading is printed in a smaller font than what is required. A printer's affidavit says the heading size is correct. State election officials are expected to make a decision by late April," the Associated Press reports.

Flint Budget

Flint’s emergency manager and his staff are working this week to wrap up a budget plan for the city. Steve Carmody reports:

The plan will include a request for up to $20 million in bonds to help close the city’s massive budget deficit. Flint Finance Director Jerry Ambrose hopes the plan will be ready to submit to the state by early next week. He says the budget plan will address the need to do “less with less." Ambrose says layoffs and furlough days are likely. Michael Brown, the city's emergency manager, is negotiating with Flint’s city unions,  hoping to reach agreement on deep contract concessions. Flint firefighters have already reached a tentative deal with the city.

Snyder Recall

A group that wants to oust Governor Snyder will launch its second effort to collect enough signatures to put a recall question on the November ballot. “It will go before an Election Commission this afternoon looking for permission to let the petition drive go forward. The group Michigan Rising gathered half a million signatures last year, but that was well short of the 800,000 names of registered voters needed to put a recall question on the ballot. The group will ask an elections panel in Washtenaw County – where the governor lives – to approve its petition. Michigan Rising cites the state’s emergency manager law and cuts to school funding as the reasons to recall the governor. If the petition is approved, the recall campaign will have six months to gather signatures,” Rick Pluta reports.

State Fairgrounds

Governor Snyder is set to sign legislation today that will allow the state to sell the Michigan state fairgrounds. Tracy Samilton reports:

The Michigan state fair was first held in 1849, making it the second oldest state fair in the country. But the event lost money most years after 1970… Attendance dropped 39% over the final eight years of the Fair’s existence. In 2009, Governor Jennifer Granholm ended all state funding for the fair, and it closed. Today, Governor Snyder will sign bills which will authorize the state to sell the property. The 157 acre property is located just east of Woodward Avenue, close to 8 Mile.

Palisades Nuclear Plant Offline

Operators of the Palisades nuclear plant in southwestern Michigan say they've taken it offline for refueling. The Associated Press reports:

The plant has been under Nuclear Regulatory Commission scrutiny because of a series of safety problems in recent months. Operators say crews removed the plant from service about 10:30 a.m. on Sunday. A restart date hasn't been announced. During the outage, Entergy says crews will place 64 new fuel assemblies. Other major work includes an inspection of the reactor vessel head, replacement of five control rod seal packages, an inspection of the moisture separator and re-heater heat exchangers,\ and an inspection of the plant's two steam generators.

Negotiations Continue in Detroit

The Detroit City Council vetted a proposed state deal to fend off insolvency yesterday. "The deal is formally called a “financial stability agreement.” The city and state have been trying to negotiate a deal for two weeks now. But after yesterday’s meeting, it’s clear the two sides are still a long way apart. The Council is expected to take up the issue again on Monday. The city and the state have until April 5th to reach some kind of deal, or Governor Snyder could choose to appoint an emergency manager," Sarah Cwiek reports. Detroit is facing a $200 million budget deficit and could run out of money by the end of May.

Autism Treatments

The state Legislature has sent Governor Snyder a package of bills that would require health insurance plans to offer coverage for childhood autism treatments. Rick Pluta reports:

Governor Snyder called for the autism mandate in his State of the State address. Lt. Gov. Brian Calley has a daughter with autism. He says the case can be made for extending the mandate to other mental health disorders, but autism was a good place to start. Calley says the requirement will save taxpayers money because more children with autism will grow to live independently instead of requiring government assistance. But on the same day, the Legislature sent him the bills, a state Senate committee eliminated funding in his Medicaid budget for treating autism.

MI Economic Recovery

Things looked bleak in Michigan in January 2009, when the state’s economic activity index fell to 60 points. But, as Rina Miller reports, in January of this year it was up to 98 points. “The index looks at payrolls, exports, sales tax revenues, unemployment claims and other factors. ‘We're starting to see some sustainable progress in coming out of the depths of the recession,’ Robert Dye, chief economist with Comerica Bank, explains. ‘And in January, we really see evidence of this resurgence of the auto industry permeating into other parts of the economy,’” Miller reports.

Snyder to Sign Helmet Law?

The state Senate approved a measure yesterday to end the requirement that motorcycle drivers over the age of 21 must wear a helmet. Now, it’s up to Governor Snyder to decide whether the measure will become law. Rick Pluta reports:

Governor Snyder has not said whether or not he’ll sign the legislation. The Senate bill would allow people 21 and over to ride without head protection – if they carry extra insurance coverage. But that did not persuade state Senator Roger Kahn, who is also a doctor. He says helmets save lives and protect against injuries that would otherwise be more severe. Advocates for repealing the law say safety training is more important than head protection. People in Michigan’s hospitality industry also support the repeal. They say there will be more Michigan motorcycle tourism without the helmet requirement.

Jobless Rate Continues Decline

The state’s unemployment rate continues to decline. Michigan's jobless rate fell in February to 8.8 percent, and the state's total workforce grew by 14,000, according to the Department of Technology, Management, and Budget. The last time the state’s unemployment rate was below 9 percent was in September of 2008. Michigan Radio’s Mark Brush took a deeper look behind the numbers – you can find his report here.

Gas Prices Worry Retailers

Michigan retailers are becoming more concerned about the impact rising gasoline prices will have on sales. “Michigan’s average gas price leaped over four dollars a gallon this week. The Michigan Retailers Association released a survey Wednesday showing lower sales projections over the next three months. Tom Scott is with the Michigan Retailers Association. He says rising gas prices will force retailers to spend more to ship their products and discourage customers from coming into their stores,” Steve Carmody reports.

Snyder to Hold Town hall Meeting

Governor Snyder will be part of a town hall meeting today in Detroit to talk about the city’s finances. “The meeting comes as state and city leaders are trying to finalize a deal to resolve major cash flow problems. A state review team has determined Detroit is in “severe financial stress”. The city’s deficit is nearly $200 million. Snyder says he’s trying to be transparent about the financial situation. He’s expected to go over the facts at the town hall meeting. He’ll also field questions and probably some criticism from the audience,” Lindsey Smith reports.

State Senate to Take Up Helmet Law

The Michigan Senate is expected to vote tomorrow on a measure to repeal the state’s motorcycle helmet law – and send it to Governor Snyder’s desk, Rick Pluta reports. From Pluta:

The measure was stalled because Governor Snyder wants the helmet law to be part of a larger discussion on finding savings in Michigan’s no-fault insurance system. State Senate Majority Leader Randy Richardville said he wants to get the law on the books in time for the new motorcycle riding season. Governor Snyder has not said what he would do if a helmet law repeal reaches his desk. Supporters of the helmet law say it saves lives and prevents expensive-to-treat head injuries.

Case Against Militia Group Dismissed

A judge dismissed key charges yesterday against members of a Michigan militia who were accused of plotting war against the government, the Associated Press reports. From the AP:

The decision is an embarrassment for the government, which secretly planted an informant and an FBI agent inside the Hutaree militia and claimed members were armed for war in rural southern Michigan. Detroit federal Judge Victoria Roberts made her decision five days after prosecutors rested their case. Her decision affects all seven militia members who've been on trial since Feb. 13. Only weapons charges remain against two of the defendants.