Politics & Government

The Michigan Legislature has wrapped up its financial planning for the future.

The $46 billion state budget is done - they'll start spending the money October 1st (that's when the fiscal year starts).

The Associate Press writes:

The Republican-led Michigan Legislature has finished approving a new state budget that will cut state aid for education and many state departments...The quick resolution of next year's budget is a victory for Republican Gov. Rick Snyder, who wanted lawmakers to wrap up votes by May 31.

This is the earliest the state budget has been completed in 30 years, according to the Detroit News.

Early passage gives school districts, agencies, and local governments time to plan for their next fiscal years.

Update 2:20 p.m.

Investigators from the U.S. Department of Energy are auditing records from Flint City Hall, according to the Flint Journal. Reporter Kristin Longley writes a "city source" says the FBI accompanied the USDOE investigators:

The investigative arm of the U.S. Department of Energy is auditing the city's use of federal energy grant funds, a federal official confirmed today, following reports that federal officials are investigating Flint City Hall.

The DOE's Office of Inspector General has investigators in the city of Flint examining how a federal grant for weatherization of low-income housing is being spent, said Rick Hass, deputy inspector general for audits and inspections.

Update 11:56 a.m.

Michigan Radio's Steve Carmody said Mayor Walling's press conference lasted all of 30 seconds. Here's the Mayor's full statement:

The Mayor confirmed there were a "number of ongoing federal investigations" underway.

10:34 a.m.

There's a federal investigation underway at Flint City Hall today. We don't know what federal officials are looking for at this point. Michigan Radio's Steve Carmody will be at an 11:00 a.m. press conference being held by Flint Mayor Dayne Walling and will have an update for us later.

Kristin Longley from the Flint Journal writes:

In the past, the city has been the subject of reports from the Office of Inspector General for the U.S. Department of Housing and Urban Development related to misspent grant funds.

It was unknown whether today's investigation was related to any of the OIG's previous findings.

We live in highly polarized times. But even by those standards, it is remarkable how much those who support a new bridge over the Detroit River, and those who oppose it, differ.

Differ not just on the merits of a new bridge, but on the most basic facts. Those who oppose the new bridge claim that Michigan taxpayers could be stuck for a hundred million dollars a year. Those who oppose the new bridge - mainly, those who work for the owner of the Ambassador Bridge - Matty Moroun - say that traffic has been declining and another structure isn’t needed.

But they say Moroun is willing to build one anyway, at no cost to the taxpayers, and that this is best left to private enterprise. Those who want a new bridge say it is very much needed, that this is not “socialism” but a public-private partnership. They say the old bridge is wearing out, there is no backup, and that a new one will be desperately needed if Michigan is to be economically competitive.

Wet Weather Continues

Rain and storms are expected to continue in many parts of the state today. Most of the region is under some type of flood advisory, watch, or warning during the morning hours. Yesterday, rain caused flooding throughout the Southeast. Yesterday, "thunderstorms... dumped more than 4 inches of rain on parts of southern Michigan, causing widespread flooding of streets, expressways and basements,” the Associated Press reports.

State Senate Completes Budget

The Michigan Senate handed a state spending plan over to the state House yesterday, Laura Weber reports. From Weber:

That leaves just a couple more steps before the budget bills go to Governor Rick Snyder for his approval. The arguments on both sides of the aisle in the Legislature have been cyclical in recent weeks; Republicans have offered up departmental spending plans with deep cuts, and Democrats have said the cuts help businesses and hurt working poor families and children. Overall the complaints of Democrats have had little impact on the budget process. The party lacks enough votes to get in the way of a budget that has thus-far rolled quickly through the Republican-controlled Legislature.

Foreclosures Hurting Michigan's Real Estate Market

Foreclosed homes continued to drag down home sale prices in the state in the first quarter of the year, Steve Carmody reports. “Realty Trac reported nearly 32 percent of homes sold in Michigan in the first three months of 2011 were repossessed homes. The average price for a foreclosed home was just a little more than $70,000. That price is about a third less than similar homes on the market. A Realty Trac spokesman says that is keeping home prices from appreciating. Michigan is among a dozen states where foreclosed homes accounted for at least 25 percent of the homes sold during the first quarter of the year,” Carmody notes.