Preliminary Review Finds "Probable Financial Stress" In Detroit

Michigan Treasurer Andy Dillon announced Wednesday that the Department’s preliminary review of the city of Detroit finances resulted in findings of “probable financial stress,” one of the thresholds in Public Act 4 that results in the appointment of a full review team by Governor Rick Snyder.

Among the findings of the preliminary review team were that the city is experiencing cash-flow problems and is projected to run out of cash in April of 2012. Additionally, Mr. Dillon stated that the city has violated the Uniform Budgeting and Accounting rules by failing to account for falling revenue by adjusting budgets.

Members of the review team have not yet been appointed. Sources have indicated that Detroit residents will be included as the Snyder Administration continues to work with Detroit Mayor Dave Bing and the Detroit City Council in the hope that the city officials will be able to come to an agreement with unions representing city employees.

Once appointed, the review team will have 60 days to report their findings. The statute provides for a 30-day extension if necessary. In addition to the Treasurer or his designee, the State Budget Director John Nixon, CPA, or his designee, is part of the review team as well as a member appointed by Senate Majority Leader Randy Richardville (R-Monroe) and House Speaker Jase Bolger (R-Marshall).

posted by PAA Online , Thursday, December 22, 2011 10:32 AM
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Governor Signs Charter School Cap Phase Out

Michigan Governor Rick Snyder signed legislation Tuesday eliminating the cap on university-authorized charter schools. Senate Bill 618, sponsored by Senator Phil Pavlov (R-St. Clair) is now Public Act 277 of 2011.

As reported by PAAdvisory last week, the new statute phases out the cap elimination over four years, rather than completely eliminating the current 150 charter school cap immediately. The cap will increase to 300 by the end of 2012, 500 at the end of 2014 and be completely gone by the beginning of 2015.

The legislation was not given immediate effect so it will take effect 90 days following the Legislature’s late December sine die adjournment. In addition to Senator Pavlov, new House Education Committee Chairman Representative Tom McMillin (R-Rochester), Representative Deb Shaughnessy (R-Charlotte) and Lt. Governor Brian Calley were present at the bill signing.

posted by PAA Online , 10:31 AM
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Business Groups Applaud Approval Of Unemployment Benefit Reform

Two packages of legislation approved by Governor Rick Snyder received considerable support from business groups.

Senate Bills 483 and 484, now Public Acts 267 and 268 of 2011, respectively, provide the State the ability to issue bonds in order to pay off the $3.2 billion unemployment debt to the federal government. In doing so, the State is considerably reducing the burden on Michigan business, which fund the unemployment insurance system, by eliminating the penalties and high federal interest rate on the loan.

Senate Bill 806, sponsored by Senator Jack Brandenburg (R-Harrison Township), is now Public Act 269 of 2011. Under this new statute, businesses are able to increase the wage base they use for figuring unemployment taxes as well as shorten the experience window from five years to three. Additionally, unemployed workers will be required to take a job after 10 weeks if the job pays at least 120 percent of their assistance amount or is equal to or greater than the area’s prevailing wage – even if the position is outside of their field of experience or skill.

posted by PAA Online , 10:30 AM
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MPSC Implements Home Heating Assistance Replacement

With the Governor’s approval of Senate Bills 364 and 864 and House Bill 5190, a fix, albeit temporary, was provided to ensure Michigan’s poor have resources to pay for home heating this Winter.

The compromise on the legislation reached last week calls for the return of the roughly $48 million previously collected from customers and a continuation of the surcharge customers have been paying for another nine months to restore the $48 million. This will be combined with a $10 million general fund appropriation to equal the $58 million that was appropriated last year. The Michigan Public Service Commission (MPSC) waited no time in implementing the structure for the support, partially through the awarding of grants totaling $23 million. The grants are headed to eight charitable organizations statewide as follows:

The Heat and Warmth Fund: $9.7 million

The Salvation Army: $6.7 million

TrueNorth Community Services: $2.6 million

Michigan Community Action Association: $2.1 million

Downriver Community Conference: $852,000

The Society of St. Vincent de Paul of the Archdiocese of Detroit: $681,000

Lighthouse Emergency Services: $256,000

Barry County United Way: $128,000

posted by PAA Online , 10:29 AM
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PAAdvisory Briefs

Snyder Signs Film Incentive Measure

Michigan Governor Rick Snyder signed Senate Bill 569 into Public Act 291 of 2011, establishing the new structure for Michigan’s film incentive program. $25 million had been appropriated by the Legislature for fiscal year 2011-2012 to provide for between 25 and 32 percent incentives for the costs of activities and personnel for film, television and video production in Michigan.

State Population Drops Again – But Only Slightly

The 2011 census estimates released Wednesday by the U.S. Census Bureau have Michigan at roughly 7,500 fewer citizens than the official 2010 census. With 9,876,187 residents, Michigan was not alone in losing population as it was in 2010. This year Maine and Rhode Island also experienced population drops.

Contentious Oakland County Redistricting Reform Signed

House Bill 5187 became Public Act 280 of 2011 on Tuesday when Governor Snyder approved the bill sponsored by Representative Brad Jacobsen (R-Lake Orion). The bill provides the Oakland County Board of Commissioners with the authority to draw district lines for the Commission rather than the reappointment panel previously in statute (comprised of the county prosecutor, county treasurer, county clerk and the chairs of the two county political parties). The maps already drawn in 2011 by the previous panel had been approved by the Court of Appeals; however, were the first ever drawn by a panel with a Democratic majority.

Lindsey to Wayne State

Wayne State University has announced the addition of Patrick Lindsey as the University’s Vice President of Government and Community Affairs. Mr. Lindsey was most recently the Director of External Relations and Development for Focus: HOPE, the Detroit-based not-for-profit.

posted by PAA Online , 10:25 AM
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