Transportation Refund Bonds
The state has
gone to the market with a $607 million bond refunding issue to pay off
transportation bonds and provide for potential improvements. The state anticipates
$600 million in new revenues for road and transportation projects from the
bonds. Coupled with transfers out of the General Fund and gas and registration
tax increases, there is an expected $1.2 billion in revenues when fully
implemented. The bonds do not carry the full faith and credit of the state, and
are slated for numerous maturity dates, beginning March 2018 and ending March
2027.
Employment and Unemployment Rates Fall
Michigan’s
unemployment rate fell by 0.1 percent in June to 4.6 percent due to a shrinking
labor force. The Department of Technology, Management and Budget released data
showing the total employment for the month of June fell by 25,000. There was a
5,000 drop in unemployment as well, creating the 0.1 percent decline in rate.
DNC Speakers
The
Democratic National Convention is being held next week in Philadelphia and
several local figures are expected to be present. Hillary Clinton’s campaign
has confirmed that Detroit Mayor Mike Duggan, former Governor Jennifer
Granholm, and Flint Mayor Karen Weaver are expected to speak at the convention.
Details surrounding the dates and topics of the speeches have not been
released.
Tobacco Tax Decision
The Court of
Appeals ruled on Friday that Michigan’s tobacco tax act is not vague,
officially overturning a Wayne County Circuit Court decision. In the case, Fady
Assy was found not having proper documentation for tobacco at a hookah shop he
managed and was charged with manufacturing tobacco products without a license
and possession exceeding $250 without proper invoices. The trial court rejected
the case stating the law was too vague, to which Judge Michael Riordan, Judge
Henry Saad and Judge Michael Kelly concurred there was nothing vague regarding
the law, rejecting the trial court’s claim.