Tagged: morning news roundup

Detroit Consent Agreement

Officials with Detroit’s law department say they expect to go to court to challenge the city’s consent agreement with the state. Sarah Cwiek reports:

Last week, Detroit’s top lawyer suggested the agreement was illegal because the state owes an outstanding debt to the city.  State officials say that premise is all wrong. Some City Council members oppose a legal challenge, calling it pointless and counterproductive. But council member Kwame Kenyatta took the opposite view. He says if city lawyers are right and the agreement violates the city charter, that’s a serious problem. Detroit Mayor Dave Bing declined to comment on the legal challenge.

Flint Teachers

The Flint school board has voted to lay off 237 teachers as part of an effort to eliminate an estimated $20 million deficit for the coming year, the Associated Press reports. From the AP:

The board voted Tuesday to lay off 108 elementary and 129 secondary school teachers. Earlier this month, the board voted to close both middle schools, along with Bunche and Summerfield elementary schools. Board documents say the district selected teachers for layoff based on recent evaluations. Statewide teacher tenure legislation last year put an end to seniority-based layoffs. The board must adopt a budget by June 30.

Kalamazoo River Update

Tests suggest household wells near the 2010 Kalamazoo River oil spill have not been contaminated. “Health officials have spent the past few years testing 150 wells in the spill zone.  Jennifer Gray is a state toxicologist. She says a draft report released this week by the Department of Community Health shows no organic oil-related chemicals have turned up in any of the water wells.  But she says a few wells have tested positive for iron and nickel. Gray says testing will continue for years to come," Steve Carmody reports. A pipeline break in July, 2010, resulted in more than 800,000 gallons of crude oil leaking into the Kalamazoo River.

Teacher Benefits

A state House committee will go to work this morning on legislation that would make some big changes to teachers’ retirement benefits. Rick Pluta reports:

The state manages the school employees’ pension fund. Governor Rick Snyder says the system is under-funded. He wants the Legislature to enact a plan to make sure it doesn't require a taxpayer bailout years down the road. Teachers’ unions say the governor is overstating the liabilities on the system. They say Republicans are using the numbers to force more costs onto school employees. One of the proposed changes would end retiree health care insurance for new hires.

Double Taxation?

Republican State Senator David Robertson wants to end what he calls a form of double taxation on new car sales. Michigan Radio’s Tracy Samilton reports:

Currently in Michigan, when you apply the trade-in value of your old car to the purchase price of a new car, you pay sales tax on the entire price of the new car.  Sen. David Robertson says that's not fair. He says most states only tax people on the difference between the value of the trade-in and the new car. Changing the tax means the state would lose $250 million in tax revenue a year, so he's proposing to phase in the tax change over six years.

Mayors Say ‘No’ to Occupy Groups

Two Michigan mayors who supported Occupy Wall Street protestors in their cities last year say they won't allow encampments on city property this year. “Lansing Mayor Virg Bernero says Michigan's capital city won't let protestors stay in a downtown park past closing time.  Ann Arbor Mayor John Hieftje agrees. ‘We wouldn't tolerate tents in our parks or people sleeping overnight.  It was a special circumstance, it was a one-time thing,’ Hieftje explains. With warm weather in full swing, Wall Street protestors are expected to make a return,” the Michigan Radio Newsroom reports.

Court of Appeals Takes Up EM Repeal

It’s now up to the Michigan Court of Appeals to determine whether voters will have a chance to approve or reject the state’s emergency manager law. Rick Pluta reports:

The court held an hour-long hearing on the question yesterday. The referendum drive wants the court to order the question onto the November ballot. That’s after a state elections panel deadlocked along party lines, effectively blocking the referendum. The board’s two Republicans said the print size on the petition was too small. Attorney Herb Sanders says if the court lets that decision stand, it would send a grim message to more than 200,000 people who signed the petitions. Opponents of the referendum say if the rules were not followed to the letter, the question should not be allowed on the ballot.

Detroit Consent Agreement Legal?

Detroit’s top lawyer says the city’s consent agreement with the state is not legally binding. “Corporation counsel Krystal Crittendon sent a letter to Governor Snyder’s office calling the agreement “void and unenforceable.” The letter cites money the state owes the city—and says Detroit’s charter forbids it from entering into agreements with debtors. State officials called Crittendon’s letter “confusing.” They say city officials must have known these things before entering into the consent agreement,” Sarah Cwiek reports.

MI “Stand Your Ground” Law

More than a dozen Democratic Michigan House members have introduced legislation to repeal the state's "stand your ground" self-defense law after the fatal shooting of Florida teen Trayvon Martin, the Associated Press reports. "The lawmakers on Thursday announced the measure to repeal 2006 laws passed by bipartisan majorities in the Legislature and signed by then-Democratic Gov. Jennifer Granholm. Backers say such laws protect innocent lives. Detractors say they can become a license to kill and are prone to misuse. Michigan is among several states with laws similar to Florida's targeted by civil rights and anti-gun violence groups," the AP reports.

MI Economic Outlook

Michigan’s unemployment rate dropped by two-tenths of a percentage point in April to 8.3 percent. Rick Pluta reports:

That news came amid predictions that Michigan’s economic recovery will continue, but at a slower pace than it has. George Fulton is a University of Michigan economist.  He says Michigan’s jobless rate remains high, but the state has been outpacing the nation in creating new jobs. “The largest job gains have been the higher wage sector and we see job growth continuing for the next few years, but not quite at the pace we saw last year,” Fulton says. Fulton says that’s largely because of an expected slowdown in car and truck sales, plus overall slow growth in the national economy. Still the mostly good economic news was enough to convince state budget officials to up their revenue projections based on expected income improvements and more consumer spending.

Balancing the State’s Checkbook

Michigan's budget will have about $300 million more this year than state economists predicted in January. “That money is the result of a combination of higher-than-expected tax payments and fewer people receiving Medicaid and other state services. The news came from today's revenue estimating conference in Lansing. State budget director John Nixon says he thinks much of the extra money may go into the state's rainy day fund. Or it may be set aside in case the state loses legal fights over collecting income taxes on public pensions or having state workers pay more of their pension costs. Officials also estimate the state will have about $100 million more to spend in the budget year that starts Oct. 1,” reporters in the Michigan Radio Newsroom explain.

MI More Optimistic

Michiganders are becoming more optimistic about the economy, according to new results out today from Michigan State University's State of the State Survey.Michigan Radio's John Wilson reports:

The survey says state residents haven't been this positive about the economy since 2005, with 54 percent of survey participants characterizing their financial situation as "good" or "excellent" and 61 percent expecting things to get even better in the year to come. MSU notes, “In the fall 2011 survey, conducted from mid-September through early November, only 46.2 percent of those answering the survey called their financial situation "excellent" or “good.”

Michigan’s Budget

A conference today at the state Capitol will determine how much money the Legislature will have to work with for the current and upcoming fiscal years. “Preliminary estimates suggest the state is in for a windfall adding up to tens of millions of dollars. State Senate Majority Leader Randy Richardville says he’s not interested in committing that money to new spending. He says the surplus is not all that big compared to the total budget… The Legislature has set a target of having the budget wrapped up by June 1st,” Rick Pluta reports.

GOP Senate Candidates

Yesterday was the deadline for candidates seeking state or federal offices to file to run in Michigan. And, it looks like the state’s Republican U.S. Senate primary will be crowded as five candidates have filed nominating petitions. They are former judge Randy Hekman, businessman Peter Konetchy, co-author of Michigan’s ban on same-sex marriage and civil unions Gary Glenn, former-congressman Pete Hoekstra and charter school CEO Clark Durant. The winner of the August 8th primary will face Democratic Senator Debbie Stabenow in November.

Anti-Fracking Ballot

People who oppose a form of oil and gas drilling known as "fracking" are officially launching a petition drive to ban the practice in the state. Tracy Samilton reports:

"Horizontal hydraulic fracturing" uses slant drilling to inject chemicals or water into rocks to fracture them, in order to extract oil or natural gas. LuAnne Kozma is the campaign's director. She says fracking uses toxic chemicals that can contaminate water. A spokesman for a company with exploratory wells in Michigan says the state has some of the most rigorous safety regulations in the nation for fracking. Petition organizers must get more than 322,000 signatures by July 9th, to get the issue on the November ballot.

The Impact of EITC Cuts

A new report says Michigan's low-income working families will pay an estimated $244 million more in state income taxes next year due to reductions in the state's earned income tax credit, the Associated Press reports. “The Michigan League for Human Services released a report yesterday that shows the state earned income tax credit in 2009 reduced taxes for low-income families by $349 million. That savings will drop to $104 million for 2012,” the AP explains. A spokeswoman with the League says the tax credits boost the economy because poor families spend the money right away.

Political Ad Buys

Five politically conservative groups appear to be pooling their money to buy political ads on Michigan TV stations. Lester Graham reports:

The public files of Michigan’s TV stations reveal four different political non-profits and a super PAC are taking turns buying ads critical of President Obama.  Rich Robinson, with the Michigan Campaign Finance Network, keeps track of this kind of political spending. Often this political money is reported nowhere else. “Millions of dollars have been spent in Michigan, characterizing the Obama administration and its policies, and there will be no accountability for who's behind that,” Robinson says. Most of the groups do not have to reveal who their donors are. Record-breaking amounts of money are expected to be spent in an attempt to influence voters this election year.

MI Budget Boost

A new report says Michigan is collecting more in tax revenues than previous guessed. Steve Carmody reports:

The state House Fiscal Agency reports that revenues in the General Fund and School Aid Fund are running nearly $200 million higher than previously estimated for this fiscal year. The agency predicts revenues will also be slightly higher in the next fiscal year. “General Fund revenues are fluctuating more than school aid. It does appear at this time that there may be more money in school aid,” says Ari Adler, the spokesman for state House Speaker Jase Bolger. Adler says legislative leaders hope to pass a budget for next year by the end of the month. The next fiscal year begins October 1st.

Individual Tax Cut?

Lt. Gov. Brian Calley says a tax rollback for individual filers could be part of an overall plan to cut taxes for manufacturers. “The state Senate has approved a proposed phase-out of the tax on most manufacturing equipment. The package now goes to the state House. House Speaker Jase Bolger says he wants to roll into it a reduction in the state income tax or some other tax on individuals. Calley says he and Gov. Snyder are open to the idea. Democrats have complained that the tax reductions enacted by Republicans in Lansing over the past year and a half have all been directed at businesses,” Rick Pluta reports.

Pure Michigan

The Obama Administration wants to step up efforts to promote the U.S. as an international tourism destination and that’s welcome news to the folks who run the “Pure Michigan” campaign. Steve Carmody reports:

Michigan tourism officials know people from foreign countries come here to vacation, but they don’t know how many. And that’s important to know when they’re planning how to spend the “Pure Michigan” campaign’s $25 million advertising budget. This year, only about one percent, or about $250,000, is being spent to promote Michigan as a tourism destination in Europe, mainly in England and Germany. Nothing is being spent in Asia. Right now, the “Pure Michigan” campaign is focusing on regional promotions with some national ads, .and “a modest effort” in Canada.

Northern MI Wildfire

Officials say two wildfires in Michigan's northern Lower Peninsula burned nearly 400 acres before being brought under control by fire crews, the Associated Press reports. “WWTV/WWUP reports the first fire started in Ogemaw County's Foster Township and burned about 125 acres on Sunday. The second fire was about four miles away and burned about 250 acres. No injuries were reported. People along a mile-long section of roadway near the first fire were evacuated Sunday but since have returned home. There's no word of structure damage.The cause of the fires is under investigation,” the AP explains.