Detroit could leave state's financial oversight by 2017. Detroit Mayor Mike Duggan told the City Council today that the city’s 2016-17 financial plan would mark the third straight year of balanced budgets, clearing the way for Detroit to come out of state oversight in 2017 — even with a $490-million hole in pension funding the city must begin to address.
Detroit will end the current fiscal year with a surplus of at least $30 million on its $1.077-billion general fund budget, Duggan and the city’s chief financial officer, John Hill, told the council this morning in the administration’s presentation of the budget. “We are running this city in a responsible manner,” Duggan said, cautioning the council that it is critical that the city stay within its next budget so Detroit will be positioned to move out of state oversight as early as December 2017.
Free tuition for Detroiters to add 4-year universities. A program that provides two years of free college tuition for Detroit residents has been expanded to cover four years of education for students with good grades.
Officials said today that the Detroit Promise program has grown to make the city the largest in the U.S. to give all its students a chance to earn a college degree tuition-free. “The Detroit Promise is changing lives,” Mayor Mike Duggan said in a news release. “This program is one of the most significant ways we are removing barriers to opportunity for young Detroiters so they can realize their full potential in life without the burden of student debt.” Helping more Detroit kids gain four-year college degrees - Michigan Future Inc. We at Michigan Future believe state leaders should raise living standards for all Michiganders with policies that boost educational attainment, strengthen cities that have potential to attract talented workers and create a stronger social safety net.
Got job skills? Michigan needs you. As baby boomers retire in ever increasing numbers, employers throughout Michigan are facing a growing problem finding workers with the education, training and skills needed to fill their jobs. Industries in Michigan from construction to health care are facing shortages of competent workers. Those shortages are growing more acute as Michigan's unemployment rate continues to decline toward the 5% mark and the pool of available talent shrinks. Shortages of qualified workers — known as the "skills gap" — presents a drag on Michigan's future economic growth. One area where it is felt most acutely is in the state's construction industry, which is facing shortages of carpenters, electricians and other skilled trades.
For an industry still recovering from a catastrophic decline during the Great Recession, this skills gap isn't some distant possibility. Detroit and unions teaming up to expand jobs. Ferndale — The state’s largest skilled trades union on Wednesday announced a new agreement with Detroit designed to expand career opportunities in the field for city residents.
The Michigan Regional Council of Carpenters and Millwrights has pledged that 25 percent of all first-year apprentices in the training program will be Detroit residents. “With the amount of work we see coming into Detroit, the numbers are doable,” Mike Jackson, executive secretary-treasurer of the carpenters union, said during a news conference inside the Detroit Area Carpentry Apprentice Training School in Ferndale. “If you want to be a real carpenter today, you need real training. Fixing Detroit’s Broken School System: Improve accountability and oversight for district and charter schools. 40315399. Toyota's per-car profits lap Detroit's Big 3 automakers.
Despite the boom in the U.S. automotive industry, Toyota Motor Corp. earns more in a year than Detroit's Big Three automakers combined.
That doesn't tell the full story: When average earnings per vehicle are calculated, the Japanese automaker makes more than four times per car than General Motors Co. Detroit auto companies are arguably the healthiest they've been in decades. GM, Ford Motor Co. and Fiat Chrysler Automobiles NV are profitable, adding jobs and creating the most advanced cars in history. But they trail Toyota significantly in overall financial performance. Even though they all reported strong 2014 earnings — $6.5 billion for GM, $6.3 billion for Ford, $3.9 billion for Fiat Chrysler before interest and taxes — Toyota this month raised its outlook to 2.92 trillion yen (about $24.5 billion) for the fiscal year ending March 31. Then there's average earnings per vehicle: Toyota is expected to come in at $2,726 for its current fiscal year. The decline of Detroit. Globalisation has been a powerful force that has accelerated change in the world economy over the past half-century.
It has affected the fate of companies as much as countries. And nowhere has been the change more dramatic than in the US car industry. Fifty years ago, American car companies dominated the world, especially the mighty GM, the world's biggest industrial company, many of whose factories were based in Flint, Michigan, 40 miles north of Detroit. Detroit in bankruptcy: How did it happen? - Crain's Detroit Business. The city of Detroit, which for years paid its bills with borrowed money, is the largest city in U.S. history to file for bankruptcy protection.
Here's a look at how the city spiraled into financial ruin and why it's in so much trouble: For decades, Detroit paid its bills by borrowing money while struggling to provide the most basic of services for its residents. The city, which was about to default on a good chunk of its $14 billion-plus debt, now will get a second chance in a federal bankruptcy court-led restructuring. Detroit's budget deficit this year alone is estimated at $380 million, and Kevyn Orr, its state-appointed emergency manager, chose bankruptcy over diverting money from police, fire and other services to make debt payments.
How Detroit Went Bottom-Up. In the spring of 2005, David Stockman at last reaped the reward of the monopolist.
Stockman, who once served as Ronald Reagan's budget director, spent two decades on Wall Street preparing for this moment. After stints at Salomon Brothers and the Blackstone Group, Stockman in 1999 set up his own private investment fund, Heartland Industrial Partners. He then used Heartland to shape a set of companies -- mainly in the automotive sector -- each dedicated to dominating a particular group of production activities. Of all Stockman's efforts, his most audacious centered on a firm named Collins & Aikman. Stockman used C&A as a vehicle to buy up small producers of interior components like dashboards and seats, and he swiftly captured a position supplying parts to more than 90 percent of all cars built in America.
When the time came to choose his first target, Stockman took aim at Chrysler. Unfortunately for Stockman, he appears to have mis-timed his play for a big payday. Cookies are Not Accepted - New York Times. The numbers behind Detroit's jobs crisis. Detroit has made great progress toward addressing the needs of its residents in the last few years.
However, one of the city’s most important challenges remains: rebuilding the city’s workforce. The crux of this challenge is that there are too few jobs in the city for its residents and too many barriers to employment. Improving economic conditions have led to a net gain of over 7,900 residents employed since January 2014. But many Detroiters continue to struggle to access meaningful employment that allows them to support their families and their communities.
What will it take to help Detroiters overcome these barriers? To help answer these questions, JPMorgan Chase initiated research to provide context for the challenges facing workers and employers in Detroit. Anatomy of Detroit’s Decline - Interactive Feature. Mayor Coleman A. Young of Detroit at an event in 1980. Richard Sheinwald/Associated Press The financial crisis facing Detroit was decades in the making, caused in part by a trail of missteps, suspected corruption and inaction. Here is a sampling of some city leaders who trimmed too little, too late and, rather than tackling problems head on, hoped that deep-rooted structural problems would turn out to be cyclical downturns. The Long Lost City of Detroit: The Economic and Financial Pain of Motor City. How Detroit went from 1.8 Million to 912,000 Residents. 28.9 Percent Unemployment.
Low jobless rate, so where are the jobs? By some measures, Michigan's economy hums along nicely.
The state's unemployment rate dropped to 4.9% in January, the lowest rate since 2001. So what explains the veil of anxiety, even pessimism, that hangs over the state and its economic outlook? Why did so many Michiganders turn out in record numbers last week to vote for outsider candidates Donald Trump and Sen. Bernie Sanders and a message of economic revolution? Even Gov. This fretting over the Michigan economy stems from many things, factors that blend truth and fiction, hard data and fancied hobgoblins. First, some hard data.
Michigan's workforce still remains at least 300,000 jobs short of 2001 employment levels. Detroit retirees' effort to restore pension fails. A federal appeals court on Monday rejected a challenge to cuts in Detroit pensions, saying a plan that helped bring the city out of the largest municipal bankruptcy in U.S. history must not be disturbed. “This is not a close call,” said Judge Alice Batchelder at the 6th U.S. Circuit Court of Appeals. Some retirees sued, saying they deserve the pension that was promised before Detroit filed for bankruptcy in 2013. Trump plan slashes funding for Detroit, Great Lakes and much more. The budget proposal contains far deeper cuts than anticipated. President Trump said it fulfills his campaign promises “to re-prioritize federal spending so that it advances the safety and security of the American people.” Detroit’s depopulation: How immigrants are helping Detroit’s recovery.