treasury department

Breaking
2:28 pm
Fri October 11, 2013

Michigan Treasurer Andy Dillon to step down

State Treasurer Andy Dillon
Associated Press

He announced today that he will step down effective November 1. 

In his statement, Dillon said his recent divorce "distracted" him from his work:

“It is with mixed emotions that I announce I have tendered my resignation to Governor Snyder. It has become clear to me-- as it likely is to most -- that it is unfair to my family and the residents of Michigan, to allow issues related to my recent divorce and the unfortunate acrimony associated with it to be a continued source of media attention and scrutiny. My family deserves privacy and our residents deserve to know their State Treasurer is not distracted by such issues and events. For these personal and professional reasons, I have determined it is in the best interests of all that I resign."

Dillon was both praised and criticized for his role in ushering the city of Detroit into bankruptcy. In a statement, Governor Rick Snyder praised Dillon for his tireless work and expertise.Dillon's announcement comes one day after he was deposed by union lawyers about Detroit's bankruptcy.

"The decision to seek bankruptcy protection was not an easy one but was determined to be the only remaining way to address Detroit's long-running financial crisis," Dillon said yesterday after the three-hour meeting.

Dillon was appointed by Gov. Rick Snyder in January 2011, after an unsuccessful run for the Democratic nomination in the state’s 2010 gubernatorial election.

Bill Ballenger is with the newsletter Inside Michigan Politics. He says it was a little surprising it took this long for Dillon to step down, but he says he saw no sign that Dillon's personal turmoil was affecting his job performance. "It made it unlikely he could continue to be any kind of an asset," said Ballenger. "On the other hand there hasn't been any criticism of Andy Dillon's performance as state treasurer.

Education
1:13 pm
Sun June 9, 2013

Michigan facing a lawsuit over student loan program

Michigan State University graduates (file photo)
Steve Carmody/Michigan Radio

The state of Michigan is facing a potential class action lawsuit over a student loan program.

Beginning in 2003, the Michigan Students First loan program offered college students an interest rate subsidy after their first 36 on-time loan payments, effectively reducing their interest rate to zero.

But in 2010, the subsidy was ended.

Attorney Jeff Hank says that left thousands of Michigan college students having to pay more in student loans than they had originally planned.

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Politics & Government
11:47 am
Tue April 2, 2013

Could there be a "Water War" between Flint and Detroit?

Flint leaders want to change where their city gets its tap water. But Detroit is fighting the change.
Steve Carmody/Michigan Radio

A battle is brewing over where the city of Flint will get its tap water.

Last month, the Flint city council voted to join a project to get fresh water from Lake Huron.   Supporters say the project will save the city millions of dollars by replacing its current water source: the city of Detroit.

But the Detroit Water and Sewerage Department is asking the state Treasury Department to veto the plan.

Bill Johnson is with the DWSD. He says state officials need to step in to prevent a “water war.”

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Politics & Government
7:00 am
Mon January 21, 2013

Benton Harbor’s new emergency manager will work in “dog years” to hand over local control

Benton Harbor’s incoming emergency financial manager says he’ll work quickly on a plan to put the city in the black.

Tony Saunders II says no kid aspires to grow up to be an emergency financial manager, but he’s excited about the opportunity. He’s 26-years old, expecting his first child in April. But he says people should consider his experience working in Detroit and Highland Park, not his age.

“I’m not worried about my age and I don’t think others will once they have a chance to meet me and see the pace that I’m willing to work at,” Saunders said.

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Politics & Government
3:50 am
Thu January 17, 2013

Benton Harbor’s emergency manager calls his departure 'bittersweet'

Harris smiles as he begins his press conference with the Sammy Davis Jr. song, "Please Don't Talk About Me When I'm Gone" Wednesday afternoon.
Lindsey Smith Michigan Radio

Benton Harbor Emergency Manager Joe Harris says he’s proud of his accomplishments in his nearly three years running the city. Harris said it was the most exciting job he’s ever had, describing his departure as “bittersweet."

Benton Harbor is going through a big transition this month. Michigan Radio's Lindsey Smith has this update.

As he entered his press conference Wednesday afternoon, Harris flashed a big smile at the TV cameras and reporters, some city staff and a few elected leaders. He played “Please Don’t Talk About Me When I’m Gone,” a fitting Sammy Davis Jr. version of the tune as he walked into the room.

“Don’t say a mumbling word about me when I’m gone,” Harris sang, tapping his foot along with the beat.

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Politics & Government
12:47 pm
Mon January 14, 2013

State appoints young, fresh face to run Benton Harbor beginning next month

Joe Harris is on his way out of office as Benton Harbor's emergency manager.
Lindsey Smith Michigan Radio

As expected, the state has replaced Benton Harbor’s emergency manager. Joe Harris has served as Benton Harbor’s emergency manager since former Governor Jennifer Granholm appointed him in March 2010. His contract expires January 31st.

Harris made progress in cutting the city’s deficit, but has been blamed for keeping the community in the dark about his decisions recently. Some of the city’s elected officials asked the state to replace Harris last month. Although state officials are not acknowledging that’s the reason, a letter from Deputy Treasurer Roger Fraser explains the state would work to fulfill the request.

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Politics & Government
4:58 pm
Wed December 19, 2012

Benton Harbor’s emergency financial manager's days in charge appear numbered

Benton Harbor Emergency Manager Joe Harris at a press conference in late November 2012.
Lindsey Smith Michigan Radio

Former Governor Jennifer Granholm appointed Joe Harris to run Benton Harbor’s dismal finances nearly three years ago.

Then City Commissioner James Hightower supported the takeover when others didn’t. But Hightower, who’s now the city’s mayor, says Harris has become increasingly difficult to work with.

Hightower says he and other elected officials told the state they would support a special assessment fee on all property owners in exchange for six conditions. One of them was that Joe Harris be replaced by the end of January.

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Auto
11:50 am
Wed December 19, 2012

'Government Motors' no more?

GM's headquarters in Detroit.
John F. Martin Creative Commons

The U.S. Treasury Department and General Motors announced today that company will buy 200 million of the U.S. government's 500.1 million shares in GM.

GM will pay $27.50 for each share. That's 7.9 percent more than yesterday's closing price of GM stock.

The sale, expected to be completed by the end of the year, will reduce the government's stake in the company to around 19 percent.

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Politics & Government
10:35 pm
Tue December 4, 2012

People in Benton Harbor want to save public safety department, but demand more info first

Benton Harbor public safety officers came to the hearing to show their support for the special assessment.
Lindsey Smith Michigan Radio

All the metal folding chairs in the building still weren't enough for the hundreds of residents who showed up at Tuesday night's public hearing.

Benton Harbor’s Emergency Financial Manager Joe Harris says officials from the state treasury department will ultimately decide if city residents will pay a special fee to save its police and fire departments. The city lost 20-percent of its income after voters rejected a millage last month.

Benton Harbor Public Safety Captain Dan McGinnis made the case for the fee. He pointed to a major drop in violent crime this year and cost savings from combining the police and fire departments.

“I’ll leave you with this; no one knows Benton Harbor’s streets like we do. Bottom line, no one knows,” McGinnis said.

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Politics & Government
8:34 am
Fri November 9, 2012

Benton Harbor faces consequences after millage rejection

Benton Harbor City Hall
Lindsey Smith Michigan Radio

The City of Benton Harbor could face major staffing cuts after voters rejected a millage renewal this week. The cash-strapped city has been under the control of a state-appointed emergency financial manager for two years.

“When I heard the news my heart just sank. I didn’t believe it,” Benton Harbor Mayor James Hightower said, calling the rejection “unreal”. The millage helps pay for basic city operations.

Benton Harbor Mayor James Hightower believes voters were misled in part by some elected officials who are against the emergency financial manager.

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Politics & Government
7:45 pm
Thu October 25, 2012

Allen Park gets emergency financial manager; prompts EFM shuffle in other communities

Joyce Parker will start as the emergency financial manager of the City of Allen Park on Monday.
Joyce Parker

The City of Allen Park is the latest to get a state appointed emergency financial manager. The move affects who’s in charge in some other communities who already have emergency managers.

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Politics & Government
5:07 pm
Tue October 23, 2012

Michigan awards grants to 32 communities to find new ways to get along

Getting along with your neighbors isn’t always easy. So Governor Rick Snyder came up with a pretty simple plan to get townships, counties and cities to find new ways to work together; give them some kind of incentive, specifically, money.

Michigan Department of Treasury spokesman Terry Stanton says these Competitive Grant Assistance Grants are incentives to get neighboring cities, townships and counties to work together in new ways.

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Government
4:16 pm
Fri August 24, 2012

Using emergency loans to pay off other loans; some Michigan school districts are doing it

The recession has made it harder for local governments and school districts to balance their budgets. This summer the governor signed a new law creating a board that will help those hardest hit cope with short term cash flow problems.

Earlier this month the emergency financial managers of both Muskegon Heights Public Schools and Highland Park schools got emergency loans to pay off other state loans. MHPS borrowed $7.65 million while Highland Park schools borrowed $4.4 million.

“It’s not a handout; it’s a loan in order to help get people on their feet, in order to make the changes that are necessary going forward,” said Caleb Buhs, a spokesman for Michigan’s Department of Treasury. The school districts have 30 years to pay the state back.

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Offbeat
4:01 pm
Sun April 15, 2012

Tax Time

(photo by Steve Carmody/Michigan Radio)

The clock is ticking if you haven’t filed your state and federal income tax returns.   But there’s still time.

April 15th is usually the day taxpayers must file their income tax forms by.

But since April 15th fell on a Sunday this year, and because of a Washington D.C.  holiday (Emancipation Day) falls on April 16th, the Internal Revenue Service decided to make April 17th the deadline for this year.

Caleb Buhs is with the Michigan Treasury Department.     He says most of the returns filed this year have received refunds.

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Politics
9:13 pm
Tue January 31, 2012

Michigan movie studio defaults on bond payment, state pension funds to cover costs

user mconnors morgueFile

A Michigan movie studio that opened just ten months ago is in default on an $18 million state-issued bond.           

Raleigh  Studios made a big splash when it opened in Pontiac last March, with its seven sound stages and state of the art facilities. But now the movie studio can no longer meet its debt obligations, and will not make a $420,000 payment due Feb. 1.

"The movie studio is in default of that payment," explains Terry Stanton, communications director for the Michigan Department of Treasury. "But the bonds will not be in default, since the State of Michigan Retirement Systems is obligated to make those payments."

The money will come out of the retirement funds of public school and state employees, police and judges. 

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Education
1:01 am
Mon December 12, 2011

Flint school board sending deficit elimination plan to state today

The Flint School District will deliver its deficit elimination plan to the state today. But a long-time critic doubts the district’s administration will be able to make the plan work.     

State law requires local units of government that finish their fiscal year with a deficit to send a ‘deficit elimination plan’ to the Treasury Department. 

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Flint
3:29 pm
Mon October 31, 2011

Review of Flint's city finances gets 30 day extension

Downtown Flint, Michigan
Steve Carmody Michigan Radio

A state team is getting more time to analyze Flint’s city finances.   

The panel’s findings could lead the governor to appoint an emergency manager to run the city.   

The panel’s report was due by the final day of October. But Treasury Department spokesman Terry Stanton says the 8 member team appointed by the governor needed more time to review a few more matters. The governor has granted the review team an additional 30 days. 

Earlier this year, the Treasury Department determined that Flint was in “probable financial stress."  

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Economy
1:01 am
Wed August 10, 2011

Treasury Dept: state retirement funds sound, despite stock market decline

(photo by Steve Carmody/Michigan Radio)

The people who manage more than 50 billion dollars in state retirement funds say the recent stock market drop should not be a serious long term problem.    More than 400 thousand former state employees, teachers, state troopers and  judges receive checks from the state managed retirement funds. 

Terry Stanton is with the State Treasury Department.   He says the retirement fund  is managed to absorb the changes in the financial world. 

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Economy
6:53 am
Thu April 28, 2011

U.S. Treasury Secretary to visit Southeast Michigan

U.S. Treasury Secretary Timothy Geithner will visit the Detroit Economic Club today.
Center for American Progress Flickr

U.S. Treasury Secretary Timothy Geithner will visit Michigan today. He'll make an appearance at the Detroit Economic Club. Geithner will speak with Detroit's political, business and community leaders about the economy, the Associated Press reports. From the AP:

Geithner's appearance Thursday afternoon is part of the Detroit Economic Club's 2010-11 meeting season.

President Barack Obama swore Geithner in as the 75th treasury secretary in January 2009. He was deeply involved in the negotiations that led to billions of dollars in government loans being given to General Motors and Chrysler.

Detroit and Michigan have suffered as much as any city or state economically over the past few years. Thousands of workers have been laid off as businesses have been forced to close or downsize.

Auto/Economy
7:22 am
Thu January 27, 2011

Treasury Department hopes to sell off remaining GM stock within 2 years

U.S. Treasury Department, Washington, D.C.
Wally G Flickr

The head of the government's bailout program says the U.S. Treasury Department hopes to sell its remaining shares of General Motors stock over the next two years.

The Associated Press reports:

Timothy Massad, the senior Treasury official managing the government bailout fund, told a congressional hearing that there is now a path forward for Treasury to sell its remaining shares in GM over the next two years if market conditions permit. The Treasury Department trimmed its stake in GM to 26.5 percent of the company, down from 61 percent, when it sold $23.1 billion of GM stock at an initial public offering in November.