Michigan

A state investigation into the Allen Park, Mich. finances revealed a myriad of financial and political problems, including a bond debt the city can barely pay.

Detroit on Thursday will offer $123 million of state aid-backed bonds that the city's chief financial officer says will help generate enough of a cash cushion to carry the city through the fiscal year.

Michigan officials on Wednesday took steps to ensure that emergency financial managers remain in place at three school districts and four cities after the election board formally approved putting a measure asking voters to repeal the management law on the November ballot.

A repeal of Michigan's controversial emergency management law would likely further challenge already fiscally troubled municipalities, Fitch Ratings said last week.

Michigan Treasurer Andy Dillon said Friday that legislators should consider crafting a new law for troubled municipalities after a state Supreme Court ruling allowed an effort to overturn the existing law on the November ballot.

For the second time this year, the Michigan retirement systems has made the debt-service payment for a struggling film studio. The state offered a unconditional guarantee as a back-up pledge when the project was financed in 2010.

Voters in the tri-county area that surrounds Detroit will face several millage increases - and only a few bond proposals -- in addition to filling political seats on next week's primary ballot.

The Michigan-appointed emergency manager of Highland Park Schools has converted the troubled suburban Detroit district into a charter-operated one, and hired a private firm to run the schools starting in the fall.

An Ann Arbor-based company announced last week it will help develop zoning for Detroit Mayor Dave Bing's plan to shrink the city's urban footprint to reflect its diminished population.

Michigan's top court Wednesday heard arguments over the font size on petitions for a ballot referendum to overturn the state's controversial emergency management law.

Moody's Investors Service last week affirmed its B1 rating and negative outlook on Detroit Public Schools, saying the district has seen improved financial results in 2011 and 2012, but still faces serious challenges.

Detroit officials this week announced the city won a $30 million federal grant to help buy and upgrade city buses among other capital upgrades.

City officials say the $102 million of cuts - made without union or city council approval - are needed to avoid "chaos" as the city is on track to go broke by Oct. 15.

Moody's Investors Service last week affirmed its Baa2 rating on Wayne County, Mich., but revised the outlook to negative from stable.

The powerful nine-member financial advisory board that oversees Detroit's consent decree with Michigan undertook its first major action last week, approving $102 million of cuts proposed by Mayor Dave Bing.

The Michigan Supreme Court agreed last week to hear a simmering dispute over a ballot referendum to overturn the state's emergency manager law. The court set a date of July 25 for the hearing.

An Ingham County judge shot down the Detroit Corporation Counsel's motion to reconsider the dismissal of a lawsuit that challenging the city's consent decree with the state. The decision removes one hurdle from the path of a badly needed bond transaction for the city.

Michigan Gov. Rick Snyder last week signed into law legislation that will set aside a portion of sales tax revenues for the cash-strapped transportation fund.

Detroit faces two new lawsuits challenging the city's recent consent decree with the state about its finances.

Michigan and city officials reached an agreement with Bank of America Merrill Lynch that pushes back by two weeks the payment date on $80 million of privately placed notes. The extension gives the city more time to resolve a dispute with its top attorney, who is challenging the city's consent decree with the state.