DPS Transition Manager Places Two Week Deadline

Retired bankruptcy Judge and now Detroit Public School transition manager Steven Rhodes said mid-week that the School District will not be able to pay staff after April 8^th and called on the Legislature to pass either a supplemental appropriation or a full solution prior to their departure for Spring Break.

Judge Rhodes told the House Appropriations Committee that the District will not be able to pay its teachers for the pay period beginning after April 8, 2016 and because he would not ask staff to work without pay, the District would not be able to stay open. The Legislature is scheduled to depart on a two-week recess following session on March 24, which leaves two weeks (or 6 scheduled session days) since the Legislature won’t be returning to Lansing for session until April 12.

House Speaker Kevin Cotter (R – Mt. Pleasant) was optimistic that something might be concluded by March 24, whether that is a full solution or enough progress on education reforms to warrant passing additional financial resources.

Mr. Rhodes also explained why bankruptcy is not a viable option for the School District, as the debt that a bankruptcy can resolve is not the type of debt the district has. If not for the $13 million Michigan Public School Employees Retirement System (MPSERS) payment, the District would be operating in a surplus according to Mr. Rhodes.

In related news, Detroit Mayor Mike Duggan testified before the same committee earlier in the week to advocate for a Detroit Education Commission charged with opening and closing both public and charter schools in the city. The Mayor is pushing for a seven-member commission, all appointed by the Mayor, stating that returning to local control of the district as soon as possible is a key component for any future success. His plan would also include electing a school board in August of 2016.

Governor Snyder’s plan for DPS also includes the appointment of a commission; however, with the Governor having the majority of the appointments.

posted by PAA Online , Friday, March 11, 2016 10:28 AM
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Michigan Charter Operations Praised In

The National Alliance for Public Charter Schools issued its second ranking of charter school programs nationally this week and Michigan is ranked third among the states.

The report praised Michigan for the quality of the charter school law, for the percentage of students attending charter schools, and for having charter schools in areas where need exists. Further, the report stated, “In Michigan, charter public schools serve a higher percentage of racial and ethnic minority students and free and reduced-price lunch students than traditional public schools, showing that charters are serving those students who most need a better public school option.”

The report ranked Washington, DC first, well ahead of any other state. The report noted that half of Washington, DC schools are charters and 44 percent of students attend those schools. Indiana ranked second, just ahead of Michigan. Conversely, Oregon ranked at the bottom of the list. Only 5 percent of the state’s students attend charter schools and those charters serve a very small percentage of minority and low-income students.

posted by PAA Online , 10:28 AM
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Flint Water Billing Suspended by Mayor

Although the Legislature passed (and the Governor signed) legislation appropriating $30 million to credit Flint residents’ water bills between April 2014 and now, these are technicalities that city employees are still working on to ensure the proper credits are awarded to the proper citizens. In the meantime, Flint Mayor Karen Weaver suspended the mailing of water bills effective Wednesday. The bills are expected to be sent out in April and the estimated credit that will appear on each customer account statement is roughly $600.

According to statements released by the Mayor’s office, the technicalities yet to be addressed include adjustments to some accounts to reflect a judge’s ruling in January on rates. Further, another adjustment is needed on some accounts related to delinquent totals that were placed on property tax bills. The water portion of the property tax bills were returned to the customer water accounts so the appropriate credit could be calculated.

posted by PAA Online , 10:27 AM
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Outcome of House Special Elections as Expected

The Michigan House of Representatives will shortly be back to a near full chamber of 109 members after Tuesday’s special elections in three districts delivered the expected results. A fourth district remains vacant as former State Representative Derek Miller of Warren just recently resigned to accept the appointment as Macomb County Treasurer.

Representative-elect Mary Whiteford, a Republican from Casco Township, was victorious in the special election to replace expelled Representative Cindy Gamrat in the 80^th House District. Ms. Whiteford is a pediatric nurse who came just short of beating Ms. Gamrat in the 2014 Republican Primary. She defeated Democrat David Gernant of Plainwell by a wide margin in the significantly Republican seat.

In the 82^nd House District, vacant due to the resignation of former Rep. Todd Courser before he could be expelled, Representative-elect Gary Howell of North Branch defeated Democrat Margaret Guerrero DeLuca of Imlay City. Mr. Howell has led the Lapeer Intermediate School Board and the Lapeer County Road Commission and first ran for the House in 2008, losing to former Rep. Kevin Daley (R-Lum) in the Republican Primary.

Finally, in the 75^th House District, Democrat David LaGrand of Grand Rapids defeated Republican Blake Edmonds by more than 3 to 1 in the heavily Democratic seat. The 75^th District had been vacant due to former Rep. Brandon Dillon’s resignation to become head of the Michigan Democratic Party.

The three new members are likely to be sworn in next week after elections are certified.

posted by PAA Online , 10:27 AM
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PAAdvisory Briefs

Governor’s Popularity Takes Hit

Michigan Governor Rick Snyder’s favorable rating has dipped to its lowest point ever according to a new Market Resource Group poll. Wednesday’s poll has Governor Snyder’s unfavorable rating at 51% and his favorable at 34%. Further, the same 51% have the state on the wrong track while only 30% believe Michigan to be on the right track. Both are all-time lows during the current administration.

Unemployment Rate Hits New Low

Michigan’s seasonally adjusted unemployment fell another 0.2 percentage points in January, down to 4.9 – marking the first time since 2001 that the rate fell below 5 percent. The workforce rose by 27,000 and total employment was up by 33,000 according to the Department of Management and Budget report issued this week. Detroit’s largest statistical area, the Detroit-Warren-Dearborn area, realized a 0.2 percentage point drop as well, from 6.1 percent to 5.9 percent.

posted by PAA Online , 10:25 AM
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