Politics & Government

The Detroit City Council has approved a more than $1 billion budget for the city’s upcoming fiscal year.

That budget is nearly the same as the one Mayor Dave Bing proposed last month.

This week on "It’s Just Politics," we’re talking scandals, or at least, perceived scandals. In D.C., at the White House, the Obama administration is dealing with the Benghazi emails, the IRS alleged targeting of certain Tea Party groups and the Department of Justice investigating the phone records of journalists.

Scandals: They have the ability to alter the political landscape. Watergate, a national scandal so profound that all subsequent national scandals of any note get “-gate” attached to them.

Back in 1993, here in Michigan, there was the House Fiscal Agency scandal. Some agency employees were caught using what was kind of a petty cash account for all kinds of things that had nothing to do with their jobs. The long-time chairman of the House Appropriations Committee lost his job and people went to prison. It gave Republicans a bump in the next election; winning control of the state House after two years of evenly shared power with the Democrats.

Sufficient to say, scandals can change elections. We are in an era where elections are nationalized. So here we are, going into a presidential mid-term race in 2014 and, as we've talked about before on "It’s Just Politics," mid-term elections are seldom kind to the party in the White House. Here in Michigan, that puts Democrats on defense as they’re hoping to notch some major victories come November 2014.

Democrats are being given the edge in keeping the U.S. Senate seat that Carl Levin is vacating. And in the gubernatorial race, former Democratic Congressmen Mark Schauer, who's hasn't officially announced he’s in the race yet, is running even with Governor Snyder, according to some very early polling from EPIC MRA.

The Michigan Supreme Court has set some new limits on expenses that can be claimed under auto no-fault insurance coverage by people injured in car crashes. 

Kenneth Admire used handicapped-accessible vans since a 1987 auto accident. Three times before, his insurance company paid the entire cost of the modified vehicles.

This last time, though, the company said it would pay for the modifications, but Admire has to buy the van.

Detroit's emergency manager, Kevyn Orr, wants to account for assets held in the Detroit Institute of Arts, which has sparked fears that part of the collection could be sold in the future.

We've posted information here, and Michigan Radio's Sarah Cwiek will have an update for us later today.

Update 11:34 a.m.

The DIA just put out this statement on their Facebook page:

"The DIA strongly believes that the museum and the City hold the museum’s art collection in trust for the public. The DIA manages and cares for that collection according to exacting standards required by the public trust, our profession and the Operating Agreement with the City. According to those standards, the City cannot sell art to generate funds for any purpose other than to enhance the collection. We remain confident that the City and the emergency financial manager will continue to support the museum in its compliance with those standards, and together we will continue to preserve and protect the cultural heritage of Detroit."

9:19 a.m.

Detroit is in a big financial hole, and the man in charge of righting the ship wants to know what can be sold.

Mark Stryker and John Gallagher of the Detroit Free Press report that Detroit's emergency manager, Kevyn Orr, is considering whether the DIA's art collection, with a roughly estimated value of $14 billion, should be counted as assets that can be sold to pay debts:

Liquidating DIA art to pay down debt likely would be a monstrously complicated, controversial and contentious process never before tested on such as large scale and with no certain outcome. The DIA is unusual among major civic museums in that the city retains ownership of the building and collection while daily operations, including fund-raising, are overseen by a nonprofit institution.

Stryker and Gallagher report on the many hurdles facing such a sale, including ...

• restrictions on selling off city assets in municipal bankruptcy law,
• museum ethics and operating rules that forbid selling art,
• opposition from patrons who donated art,
• and major a public outcry against such a sale:

“There would be hue and cry the likes of which you’ve never heard,” said Ford Bell, president of the American Alliance of Museums in Washington, D.C. “The museum should be a rallying point for the rebirth of Detroit and not a source of funds.”

Orr spokesman Bill Nowling said there's no plan yet to sell any asset of the city, but he said all the city's assets must be accounted for.

Detroit looking to sell art from the DIA?

Detroit’s emergency manager, Kevyn Orr, is considering whether the collection at the Detroit Institute of Arts should be counted as a city asset. If so, it could be sold to help cover the city's $15 billion debt.

The DIA Executive Vice President Annmarie Erickson has hired a bankruptcy attorney to help advise how to protect the collection. However, as The Detroit Free Press reports, liquidating the art to help pay the debt would be incredibly complicated and controversial.

Hamtramck faces financial turmoil

According to a state-appointed review team, the City of Hamtramck faces a financial emergency.

The results of the investigation were released on Thursday. Six years ago, Hamtramck emerged from state oversight. Now its more than $3 million in debt. Michigan Radio’s Lindsey Smith reports, if Governor Rick Snyder agrees with what the review team found, city leaders could opt for an emergency manager.

Pre-prom shooting in Saginaw

A 17-year old female died as a result of a shooting at a Saginaw High School pre-prom party.

Three other women were also injured during the shooting and are receiving treatment. According to an MLive report by Jessica Fleischman, the incident occurred in the parking lot of the Florence Event Hall. Officials have not revealed whether the 17-year old was a Saginaw student or if suspects have been identified.