Tagged: budget cuts

The war of words between Wayne County Prosecutor Kym Worthy and County Executive Robert Ficano is intensifying.

Worthy held a press conference Wednesday to blast Ficano. She spoke in front of a televised slideshow with media clips detailing the Ficano administration’s ongoing corruption issues.

With President Obama and Congress failing to come to a budget deal, automatic spending cuts have gone into effect. There have been dire warnings about the impact of those cuts though the effects won’t be felt immediately. But Michigan gets over half its budget from the federal government which means the state will have to face the impact of the cuts if impasse isn't resolved soon. We speak with Budget Director John Nixon.

The following is a summary of a previously recorded interview. To hear the complete segment, click the audio above.

The term "sequester" is being tossed around all over the news and in Washington D.C. this week, but what does that mean for Michigan?

Michigan could loose $140 million if federal budget cuts happen Friday

"The White House says Michigan faces about $140 million in losses if an automatic federal budget cut takes effect Friday, and U.S. Sen. Carl Levin says he's hopeful the deadline pressure will prompt Congress to raise money by closing some tax loopholes. The cuts include $67.7 million in gross pay to 10,000 civilian Defense Department employees in Michigan and $42.2 million to K-12 and disability education programs in the state," the Associated Press reports.

Bankruptcy planning for Detroit

"It appears that officials are laying the groundwork for a so-called 'managed bankruptcy' in Detroit—though they hope that won’t actually happen. A process for going through chapter nine municipal bankruptcy is laid out in the state’s new emergency manager law that kicks in next month. Governor Snyder acknowledges that bankruptcy might be the only way to reduce Detroit’s long-term debt—estimated at more than $14 billion," Sarah Cwiek reports.

Taxes impact low and moderate earners this year

"Changes to Michigan's tax structure are hitting low and moderate earners hard this year. Lawmakers approved changes in 20-11 that cut 1-point-6 billion dollars in business taxes, but raised taxes on individuals. Low-income families could be the hardest hit, with the elimination of the child tax deduction, and a reduction in the Earned Income Tax Credit," Vincent Duffy reports.

For art teachers in Michigan, it may be hard to even remember what “good news” feels like.

Between budget cuts, pink slips and declining enrollment, more than 108,000 Michigan kids don’t have any art access in their schools. That’s according to a 2012 statewide survey.

But for some 20,000 students, that’s about to change. They’re getting…a free bus ride.

"The money is just not there."

The city of Lansing faces an $11 million budget deficit in the coming fiscal year.

City officials say the shortfall is due largely to a steep decline in property tax revenues. Rising pension, health care, and salaries are also to blame. The numbers take into account the extra money the city is taking in from a new tax levy voters approved a year ago, but the city has almost reached its constitutional limit on how much money it can raise in new taxes.  In a press release, Mayor Virg Bernero says the funding model for Michigan cities is "broken."