Detroit Review Team Appointed

Michigan Governor Rick Snyder took a step closer to invoking Public Act 4 and naming an Emergency Manager for the City of Detroit when he named the 10-member financial review team Tuesday.

State Treasurer Andy Dillon was appointed to chair the team that will also include:

Frederick Headen, Department of Treasury Local Government Services Bureau Director
Conrad Mallett, former Michigan Supreme Court Chief Justice
Jack Martin, CPA, founder and Chair of Martin, Arrington, Desai & Meyers, PC
Isaiah McKinnon, former Detroit Police Chief
Glenda Price, former Marygrove College President
Irvin Reid, former Wayne State University President
Doug Ringler, Department of Technology, Management and Budget Director Internal Audit Services Director
Shirley Stancato, President of New Detroit
Brom Stibitz, Department of Treasury Senior Policy Advisor

The review team will have 60 days to report their findings. Statute provides for a 30-day extension if necessary.

posted by PAA Online , Thursday, December 29, 2011 10:33 AM
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$3.3 Billion In Bond Sales Eliminates Federal Unemployment Debt

The Michigan Finance Authority issued $3.3 billion in bonds, $3.2 billion of which was used to pay of the state’s debt to the federal government for unemployment benefits. The bonds were issued at a .24 percent interest rate and were underwritten by Citigroup Global Markets.

The bonds have an initial maturity date of July 2014, but will convert to a 10-year bond in 2012. While businesses will remain on the hook for paying off the bonds, by paying off the federal debt, the bonding eliminates interest and penalty payments.

The funds remaining following the payment to the federal government will reimburse the state’s general fund for the $38.25 million it paid in interest to the feds in September.

posted by PAA Online , 10:33 AM
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Snyder Appointees Control Transportation Commission

Michigan Governor Rick Snyder made two more appointments to the state’s Transportation Commission, bringing his total appointments to four of the six members since taking office.

Sharon Rothwell, Vice President of Corporate Affairs for Masco Corporation was appointed to replace James Scalici, a 2006 Granholm appointee. Ms. Rothwell served as former Governor Engler’s Chief of Staff.

Michael Hayes, President & CEO of the Midland Center for the Arts, was appointed to replace Ted Wahby, a 1997 Engler appointee. Mr. Hayes has served in multiple capacities with the Dow Chemical Company as well as a member of the House of Representatives from 1981 – 1988.

posted by PAA Online , 10:32 AM
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PAAdvisory Briefs

alley Signs Final Bills of 2011

While Governor Rick Snyder was traveling out of state, Lt. Governor Brian Calley signed the last 20 bills of 2011 into law. Many of the remaining bills were clean-up measures for the new corporate income tax (CIT) effective January 1, 2012. Also included were measures to protect income tax credits for taxpayers living in Renaissance Zones and a package to clarify that turbines cannot be claimed as industrial property by utility companies.

Closing of State’s Books Bumped Back

The Department of Technology, Management & Budget has announced that the books on the state’s finances will not be closed until a couple of weeks later than predicted – closer to mid-January. State law requires the unaudited financials to be completed by the end of January. The Revenue Estimating Conference is scheduled for January 13, 2012.

Michigan Legislature Adjourns Sine Die

The Michigan Legislature closed out business for the year with the uneventful Sine Die session. A handful of lawmakers were present as the Legislature wrapped up the year by noon on Wednesday.

Please Note: PAA will be closed Friday December 30, 2011 and Monday January 2, 2012. We wish you a prosperous and happy New Year.

posted by PAA Online , 10:31 AM
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