treasury department

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

Steve Carmody — Tue, 02 Apr 2013 15:47:40 +0000

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.”

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

Lindsey Smith — Mon, 21 Jan 2013 12:00:00 +0000

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.

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

Lindsey Smith — Thu, 17 Jan 2013 08:50:47 +0000

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."

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.

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

Lindsey Smith — Mon, 14 Jan 2013 17:47:52 +0000

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.

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

Lindsey Smith — Wed, 19 Dec 2012 21:58:10 +0000

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.

'Government Motors' no more?

Mark Brush — Wed, 19 Dec 2012 16:50:37 +0000

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.

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

Lindsey Smith — Wed, 05 Dec 2012 03:35:51 +0000

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.

Benton Harbor faces consequences after millage rejection

Lindsey Smith — Fri, 09 Nov 2012 13:34:21 +0000

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.

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

Lindsey Smith — Thu, 25 Oct 2012 23:45:50 +0000

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.

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

Lindsey Smith — Tue, 23 Oct 2012 21:07:32 +0000

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.

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

Lindsey Smith — Fri, 24 Aug 2012 20:16:49 +0000

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.

Tax Time

Steve Carmody — Sun, 15 Apr 2012 20:01:01 +0000

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.

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

Jennifer Guerra — Wed, 01 Feb 2012 02:13:35 +0000

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.

Flint school board sending deficit elimination plan to state today

Steve Carmody — Mon, 12 Dec 2011 06:01:01 +0000

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.

Review of Flint's city finances gets 30 day extension

Steve Carmody — Mon, 31 Oct 2011 19:29:45 +0000

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.