Politics & Government

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.

President Barack Obama will visit a Chrysler plant in Toledo, Ohio, next week to discuss the car maker's repayment of a federal loan that saved the company from financial disaster two years ago.

The White House says Obama will visit the auto plant on June 3.

Chrysler announced Tuesday the repayment of $5.9 billion in U.S. loans and $1.7 billion in loans from the governments of Canada and Ontario. It covers most of the federal bailout money that saved the company after it nearly ran out of cash in 2009 and went through a government-led bankruptcy.

The company recently posted its first profit in five years and has bolstered its lineup of Jeeps and cars.

Two-thirds of Michigan businesses are in line for a tax rollback next year. The rest will pay a six percent tax on profits. Pensions in Michigan will be taxed for the first time. An income tax reduction will be delayed to save money to help balance a budget that reduces spending on schools, local governments, and higher education.

These are all details of a sweeping tax overhaul signed into law yesterday by Governor Rick Snyder.

Snyder made cutting and simplifying the taxes paid by businesses his marquee campaign promise, and he got to fulfill that promise just a few days short of five months in office.

“It will create jobs. I’m confident of that.”

The governor says Michigan’s business tax plan will be simpler, and fairer. Only a third of Michigan businesses – those with lots of shareholders and registered as “C” corporations under the tax code – will pay the six percent tax on profits after expenses.

The governor acknowledged some parts of the plan are controversial – especially taxing pensions. Next year, someone living on a $50,000 pension can expect to pay about $1,400 in state income tax.

Snyder says extending the income tax to people born after 1946 with pension income exceeding $40,000 means that share of the burden won’t be shifted to younger people.

“That’s going to help on that issue of keeping our young people right here in Michigan.”

And the governor – a former tech company CEO and venture capitalist -- says the state’s new business tax system should be solid enough to endure for another 50 years.