Tagged: news roundup

Lawmakers to Dig into Budget Proposal

Michigan lawmakers will be in Lansing today pouring over Governor Rick Snyder’s budget proposal. Legislative committees are scheduled to hear details about Snyder's tax restructuring plan and proposed cuts to higher education, the Associated Press reports. The state faces a projected $1.4 billion budget deficit for the fiscal year that begins October 1st. Meanwhile, the Governor spent yesterday defending some of the more controversial proposals in his budget including the taxing of public and private pensions.

Auto Sales Increase

Auto sales rose by 27 percent last month. General Motors and Toyota had the strongest sales. GM saw gains for several reasons, Tracy Samilton reports:

• Last February GM’s sales were weak, so this February looks much better in comparison
• The company increased incentives in February
• It’s easier for GM customers to get financing now that GM has its own finance arm, GM Financial

Detroit Symphony Orchestra

Detroit Symphony Orchestra musicians, who’ve been on strike since last Fall, say they are willing to return to work without a contract. The musicians say they’ll go back on stage “immediately and unconditionally” if Orchestra management agrees to binding arbitration, Sarah Cwiek reports. DSO officials did not immediately respond to the offer. But they issued a statement saying they “welcome receiving the union’s proposal.”

The end of Borders

Borders Book Group Inc. can't pay its bills.

Several reports say the company is expected to file for bankruptcy sometime this week. From Reuters:

Bookseller Borders Group Inc is reviewing bids from liquidators to close hundreds of stores as it works out the final details of its impending bankruptcy filing, according to people close to the talks. The review is part of its plan to close about 200 of its 650 stores, which are a mix of Borders superstores and smaller Waldenbooks shops, these people said. The store closings will remove weak stores that have bled the retail chain's cash in recent years and provide immediate funds from the sale of inventory.

A Border's spokesman is quoted in the report saying, "Borders will not comment or speculate upon Borders' future course. If and when the company has something to disclose, it will do so."

President's Obama's Budget proposal and Michigan

President Obama released his budget proposal to Congress yesterday saying "Even as we cut out things that we can afford to do without, we have a responsibility to invest in those areas that will have the biggest impact in our future."

The Detroit Free Press says the President's budget is a "mixed bag" for Michigan. On the up side, the budget continues to invest in advanced vehicle technology research, it asks that a $7,500 rebate be put in place to encourage electric vehicle purchases (instead of a tax credit), and it would help the state avoid a big payment it owes the federal government for borrowing money to cover unemployment benefits.

And the down side? From the Freep: 

...it cuts in half a program to help poor people pay energy bills, cuts community block grants and Great Lakes restoration funding and ends plans to build an amphibious Marine Corps vehicle that could have created hundreds of Michigan jobs. 

A big day for Flint

The city of Flint will likely find out today whether it can go to the bond market to cover it's $17 million budget deficit.

The State Administrative Board is meeting today at 11 a.m. to decide the city's fate.

If the plan is not approved, the State of Michigan may eventually have to take over the city's finances.

City Administrator Greg Eason told WJRT: 

"This stabilization bond is critical to the survival of the city over the next three to five years."

Government Releases Report on Toyota

A government investigation into safety problems with Toyota vehicles found there were no electronic flaws that would account for sudden, unintentional acceleration. As the Associated Press reports:

Transportation officials and engineers with NASA say two mechanical safety defects previously identified by the government - sticking accelerator pedals and gas pedals that can become trapped in floor mats - are the only known causes for the reports of runaway Toyotas. Toyota has recalled more than 12 million vehicles globally since fall 2009 for a series of safety issues.

Bill to Eliminate EITC Introduced

A bill that would eliminate a tax credit for low-income workers in Michigan has been introduced in the state Senate. Republican state Senator Roger Kahn introduced the measure yesterday that would end the state’s Earned Income Tax Credit. Many Republicans in the state House support eliminating the tax credit. Opponents say an elimination of the credit would be the same as a tax increase on the state’s working poor.

Bobb to Testify at Capitol

Robert Bobb, the Detroit Public Schools financial manager, will in Lansing today. Bobb will testify before a joint session of the state House and Senate education committees. It’s expected he’ll talk about the districts educational and financial turnaround plans. Bobb has been the financial manager of the district since 2009.

Count Day

Today is ‘Count Day’ for public school districts across the state. Count days are important to every school district’s bottom line because the total number of students on the days helps determine how much state money the district gets year-round, Lindsay Smith reports.

Police in Detroit

Detroit Mayor Dave Bing is expected to reveal his plan for getting police officials to live in Detroit this morning. As Michigan Radio's Sarah Hulett reports:

Detroit had a residency requirement until 1999, when the state Legislature outlawed it. Now more than half the officers on the police force live outside the city limits. Mayor Bing has said he believes neighborhoods are safer when the cops who patrol them live there too.

Not all police officials agree with Mayor Bing and say they can live outside city limits and still be effective for the residents of Detroit.

Michigan Radio's Sarah Cwiek will have more Mayor Bing's proposal later today.

A replacement for the Michigan State Fair?

The Michigan State Fair was canceled in 2009 after budget cuts and declining attendance. Now the Associated Press is reporting that another cast aside in Michigan might fill the gap.

The AP reports that the "Great Lakes Agricultural Fair" would be held in and around the Pontiac Silverdome and would be run without any state funding. From the AP:

Oakland County Executive L. Brooks Patterson and U.S. Rep. Gary Peters are expected to be among those on hand Monday to unveil plans for the Great Lakes Agricultural Fair…The annual festival would feature a farm market, live animals and musical performances.

Ford to increase production

If the amount of Super Bowl ads from car makers didn't clue you in, here's another sign that automakers are expecting much better sales this year. The Detroit Free Press reports that Ford Motor Company plans to boost factory production in the U.S.:

Ford Motor Co. says it will increase U.S. factory production by 13% in the first quarter due to higher sales. Ken Czubay, vice president of U.S. sales, says Ford is studying additional shifts at plants that are now running on overtime. The Dearborn-based automaker said retail sales to individual buyers rose 27% in January. Global marketing chief Jim Farley said to expect further increases through the year.

NMU Classes Resume

Northern Michigan University is open today, following yesterday’s closure of the university due to what was being called a, “serious threat.” The threat came from a blog post, but in a statement released last night, school officials said an investigation, “revealed no evidence that the anonymous blog post originated on campus. It was discovered tonight that similarly worded messages have been directed at several other U.S. universities, recently and in a previous year.”

Weather Continues to Keep Schools (and State Legislature) Closed

The massive winter storm that hit much of Michigan this week might be long-gone, but the remnants of the storm remain. Snow, ice, and cold-temperatures have led many school districts to remain closed for a second day in a row, including Grand Rapids Public Schools, Kalamazoo Public Schools and Detroit Public Schools. Meanwhile, state lawmakers aren’t ones to be left out: sessions in both the state House and Senate have been canceled today due to the weather.

Michigan Students Return from Egypt

Students from universities across the state are returning to the U.S. from Egypt as unrest in that country continues. Michigan universities have canceled their study abroad programs in Egypt and have been coordinating with the State department to bring students back to the U.S., Bridget Bodnar reports.