Tagged: emergency financial manager

The election may have settled some things, but it has left the state of Michigan with an overwhelming problem that we have to solve soon, or suffer devastating consequences. Consequences that will affect us all, whether we live in Monroe or Marquette.

And that problem is the City of Detroit. Once again, the troubled and impoverished city is fast running out of cash.

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.

The emergency financial manager of Muskegon Heights Public Schools is asking voters to renew an operating millage for the next 16 years.

“The outcome of this millage will change the future of Muskegon Heights forever,” says a letter the school district’s emergency financial manager Don Weatherspoon sent home to parents this week.

Weatherspoon privatized the school district so he could focus on paying off its $16 million debt. That debt is mostly owed to the State of Michigan.

Schuette cautious about Blue Cross-Blue Shield overhaul

"Hearings continue at the state Capitol on the future of Blue Cross-Blue Shield of Michigan. Attorney General Bill Schuette showed up to urge a cautious approach to overhauling the state’s largest health insurer. The attorney general would give up a considerable amount of oversight under the plan proposed by Governor Rick Snyder. It would convert Blue Cross from a tax-exempt charity to a member-owned not-for-profit company. Bill Schuette says he wants Blue Cross and its assets audited to make sure this is a fair deal for Michiganders. Schuette says he’s not out to stop the changes. Governor Snyder and Blue Cross executives want the switch done by the end of the year. They say the changes are needed because the new federal health care law will change the mission of the Blues," Rick Pluta reports.

More on the EM saga

The debate over emergency managers and emergency financial managers has been heating up. The Michigan Supreme Court last month ruled a union-backed referendum to repeal the law could go on the ballot. "The leader of the Michigan Senate says he and fellow Republican colleagues are armed with a proposal to replace the state law that lets emergency managers take over local governments in case voters strike it down in November. Senate Majority Leader Randy Richardville told The Associated Press yesterday that a draft is under legal review. The behind-the-scenes effort aims to keep a form of the contentious law on the books. Richardville says it acknowledges some concerns by critics, who say it takes too much power from local leaders struggling with budget deficits," the AP reports.

Trying to uncover death of former Teamsters boss

The Department of Environment Equality work to uncover the death of a former Teamsters boss.  "Soil samples will be taken from beneath a Detroit-area driveway in the search for the body of former Teamsters boss Jimmy Hoffa. The Department of Environmental Equality plans to start its work this morning in Roseville. Authorities are investigating a man's claim that he saw a body buried under the driveway 35 years ago," the AP reports.

A state appointee has run the cash-strapped city for more than two years. Former Governor Jennifer Granholm appointed Joe Harris the city’s emergency financial manager in March 2010.

Now elected leaders have set a goal for him to leave by December 2013. They hope to get a $7 million emergency loan from the state to help get Benton Harbor out of its “financial emergency”.

Mayor James Hightower says the loan would be “a game changer”.

The first two weeks of class have presented some obstacles for Michigan’s first fully privatized public school district.

Muskegon Heights schools' emergency financial manager hired Mosaica Education, a charter school company, in July to run the K-12 system while he focuses on paying off the district’s debt. Highland Park schools’ EFM took the same option later that month.

Alena Zachery-Ross is the top administrator at the new Muskegon Height Public School Academy System. She’s very positive, but admits the first two weeks didn’t go “as smoothly” as she expected.

“There are all these things that you don’t think of. There are small details that we want to ensure are taken care of immediately but they take time,” Zachery-Ross said. She says these 'day-to-day' details are important but she must stick to a priority list.

Every Wednesday Morning Edition host Christina Shockley and Michigan Radio's political analyst Jack Lessenberry talk about the latest in Michigan politics. This week they talk about updates to emergency financial managers in Allen Park and Flint, the future of Belle Isle and the proposed overhaul to Blue Cross Blue Shield of Michigan.