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. The budget projects an increase of less than 1% in annual revenues. Duggan said the additional pension payments aren’t a crisis, but a problem the city can manage. 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.” Detroit Promise pays for tuition costs not covered by grants and other scholarships students receive. Duggan, Gov. ►Related: Could this 12-year, unconditional mentors program help Detroit's kids? How it works ►Related: What 1 thing would kids growing up in Detroit change?
Four-year scholarships began this fall and will continue at least through next fall — and likely beyond. 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.
The Detroit Promise Zone has the potential to accomplish two of these three critical policy objectives by making Detroit a more attractive city for middle class families and boosting the number of Detroit students who receive a post-college educational credential. Staffed by the Detroit Regional Chamber, the Detroit Promise Zone Authority pays community college tuition for up to three years for any high school graduate who lives in Detroit and has attended a Detroit high school – traditional public, private or charter. But while the Detroit Promise’s easier path to a two-year degree is a great start, it’s not enough to prepare Detroit’s workforce for 21st century careers.
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. “We’re already in trouble. "One of the things that we find is that in high school there’s not a lot of career counseling," she said. 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. You need a four-year program if you are going to do the job,” he said. “It’s a perfect time to come back to the trade.
We want to be a positive part of that turnaround.” Today, the union’s locals have 283 members who are Detroit residents. The new partnership is part of the Detroit Skilled Trades Employment Program. Fixing Detroit’s Broken School System: Improve accountability and oversight for district and charter schools. Detroit is a classic story of a once-thriving city that has lost its employment base, its upper and middle classes, and much of its hope for the future. The city has been on a long, slow decline for decades. It’s difficult to convey the postapocalyptic nature of Detroit. Miles upon miles of abandoned houses are in piles of rot and ashes. Unemployment, violent crime, and decades of underinvestment have led to a near-complete breakdown of civic infrastructure: the roads are terrible, the police are understaffed, and there is a deeply insufficient social safety net.
There are new federal funds and private investment being directed to Detroit’s renewal. In January 2014, as part of a multicity study, researchers from the Center on Reinventing Public Education (CRPE) met with a dozen parents in Detroit to learn about their experiences with education in the city. Ms. Today, Detroit is a “high-choice” city. School Choice with Few Options The dearth of high-quality options is evident to parents. 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. Then there's average earnings per vehicle: Toyota is expected to come in at $2,726 for its current fiscal year. Currency, labor rates and legacy costs are all factors in the gap between Detroit automakers and Toyota, according to analysts and industry experts. "There's lots of moving parts to profitability," said IHS Automotive analyst Michael Robinet. Rep. Japan has denied manipulating its rates. Labor costs Legacy costs. Business | 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.
GM in decline For the grandparents of Claire McClinton, who made the journey from the poverty of the rural south to Michigan just after World War II, it was like arriving in another world. "None of their children ever went hungry, we all had a good education, we had good jobs, and owned our own home. Claire's whole family followed in their footsteps and became "Flintsones," working for GM - and so did Claire. "We respected the union then," she said.
Toyota rising For Laura Wilshire, from Ashland, Kentucky , life is good. Dominance to decline. 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. The move conserves cash so the city can operate, but it will hurt Detroit's image for years. It took decades of decay to bring down the once-mighty industrial giant that put the world on wheels. It's a big factor. Maybe. 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. Advertisement PinIt. 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? What actions can government and private enterprise take to equip workers in Detroit with the tools they need to find and keep jobs? Where should scarce resources be spent to improve the workforce development system and match jobs to those seeking them? First, the report confirms that there are more job seekers in the city than available jobs.
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.
Charles E. Bowles, backed by the Ku Klux Klan, was in office for seven months in 1930 before people demanded his removal. Edward Jeffries, who served as mayor from 1940 to 1948, developed the Detroit Plan, which involved razing 100 blighted acres and preparing the land for redevelopment. Albert Cobo was considered a candidate of the wealthy and of the white during his tenure from 1950 to 1957. Coleman A. Kwame M. Dave Bing, a former professional basketball star, took office in 2009 pledging to solve Detroit’s fiscal problems, which by then were already overwhelming. 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. There is no other city in the United States that highlights the Achilles Heel of the current financial crisis like Detroit Michigan.
Detroit Michigan had a booming population from 1870 to 1950. In 1870 Detroit had 79,577 residents and in 1950 Detroit had a stunning 1.8 million. The massive boom came with the growth of the U.S. auto industry. The nickname Motor City was aptly deserved as Detroit became a powerhouse of economic growth. It is rare to see such a large out migration from the once powerful Detroit but visualizing this on a chart is simply amazing: From the 1950s onward, Detroit has slowly lost residents. What is fascinating with the data above is that Detroit housing values have been under inflationary trends for nearly two decades. The unemployment rate however for Detroit is off the charts.
If that is the headline number, we can only estimate that the actual unemployment and underemployment must be nearing 40 percent. Yet the current reality is more like this: Source: Time. 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. Rick Snyder's comments on last week's upbeat unemployment report carried a subdued tone. 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. Even now, with auto production again running at record rates, a quarter-million fewer people work in Michigan's factories than in 2001. The damage done by that unprecedented string of bad years has left lasting scars. Ballard agreed. 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. Thousands saw their pension cut by 4.5%; annual cost-of-living increases were eliminated. ►Related:Detroit reaches milestone in bankruptcy recovery The court noted that Detroit’s exit from bankruptcy in 2014 was the result of a series of major deals between the city and creditors, including people who receive a pension or qualify for one. In dissent, Judge Karen Nelson Moore said retirees at least deserve their day in court.
Jamie Fields, an attorney for about 160 retirees, said he wanted the court to consider the merits of his argument. Trump plan slashes funding for Detroit, Great Lakes and much more. Detroit’s depopulation: How immigrants are helping Detroit’s recovery.