Michigan

Michigan lawmakers passed a new law for distressed communities that gives them the option of choosing a Chapter 9 bankruptcy, which has never happened there.

The Detroit City Council Tuesday reversed an earlier vote and narrowly approved a controversial three-year legal contract with public finance firm Miller, Canfield that state officials said is necessary for the release of bond proceeds.

The owners of the Detroit Red Wings announced plans to build a new downtown hockey arena to would anchor a $650 million mixed-use development.

Moody's Investors Service downgraded to A2 from A1 its rating on the Detroit-based Henry Ford Health System.

Michigan is expected to launch a fresh review into Detroit's finances next week, paving the way for the possible appointment of state takeover of the nearly bankrupt city.

The Detroit City Council will meet in two special sessions over the next several days to vote on key measures needed to win release of state-controlled bond proceeds and revenue aid that the city needs to make it through both the calendar and fiscal years.

Moody's Investors Service for the third time this year downgraded Detroit Wednesday, warning that a razor-thin cash cushion, political instability, and the recent overturn of the state's emergency management are pushing the city closer to bankruptcy or default.

Michigan senators Tuesday approved a bill that is part of a larger legislative package to create a bond-issuing regional transit system for the Detroit metro area.

Michigan Gov. Rick Snyder last week said the state has still not made a final decision about whether to create its own health insurance exchange or let the federal government run one as part of the new federal health care law.

After cancelling a special session Monday, the Detroit City Council could meet as early as Tuesday to reconsider last week's 8-1 rejection of a contract that would make Miller, Canfield, Paddock and Stone PLC the city's special counsel.

A day after the Detroit City Council rejected a key condition of the state's release of $30 million of badly needed bond proceeds, the city's CFO said that unpaid furlough days and other cuts could offset the loss and that "bankruptcy is not an option."

Moody's Investors Service said Tuesday that it is maintaining its negative outlook on Michigan's local school districts, nearly a quarter of which have been downgraded since 2009.

After three hours of angry public comment, Detroit City Council Tuesday rejected a legal contract with public finance firm Miller Canfield that the state said is needed to win release of badly needed bond proceeds from a state-controlled escrow account.

The Michigan Supreme Court may consider a lawsuit that seeks to remove the emergency manager of Detroit Public Schools after voters overturned the state’s emergency management law Nov. 6.

Triple-A rated Oakland County wants to take advantage of a new state law and issue GO bonds to refinance roughly $500 million of outstanding certificates of participation it issued in 2007 to cover its retiree health care liability.

Detroit Mayor Dave Bing and the Michigan treasurer Thursday signed a new agreement outlining 10 key reforms the city must implement over the next several weeks to access dollars from a bond-funded escrow account controlled by the state.

A week after voters overturned Michigan's controversial emergency management law, two of the state's six emergency managers are planning their exits and officials say the repeal could set the stage for the state's first municipal bankruptcy.

Detroit Medical Center CEO Mike Duggan announced last week he will step down by the end of the year, a move largely seen as clearing the way for a run for Detroit mayor.

Detroit Chief Operating Officer Chris Brown, key aide to Mayor Dave Bing, is leaving to take a job at Vestas Americas, a wind power provider.

Voters Tuesday repealed Michigan's controversial new law for fiscally stressed local governments, a move that Gov. Rick Snyder warned could lead to some municipalities declaring bankruptcy.