Michigan

CHICAGO — Michigan would issue nearly $4 billion of tax-exempt bonds to pay off a $3.7 billion obligation to the federal government for unemployment insurance under a proposal being considered by state Treasurer Andy Dillon.

CHICAGO — The Michigan treasurer this week will launch a new training program for would-be municipal emergency financial managers as the state braces for a rise in the number of fiscally stressed local governments.

CHICAGO — Pontiac, Mich., became Fitch Ratings’ lowest-rated U.S. city Tuesday after the agency downgraded the city’s general obligation debt to CCC.

CHICAGO — Michigan Gov. Rick Snyder, in his first state of the state address, revived a controversial proposal to create a public-private partnership to build and operate a bridge connecting Detroit and Canada — the nation’s busiest trade crossing.

CHICAGO — Detroit, Flint, Pontiac and other urban areas in Michigan have their share of problems, but failing special-assessment debt is not one of them.

CHICAGO — In a surprise move, the Detroit City Council effectively rejected a $60 million plan to rehab a vacant casino into a new police headquarters Friday — just three days before construction was set to begin and a month after the city sold bonds to finance the project.

CHICAGO — Sylvan Township, Mich., will likely need to impose a steep property-tax hike on its residents to cover payments on bonds that were issued to support a now-failed special assessment district.

CHICAGO — Veteran Michigan public finance official Gary Olson has left his longtime position as head of the Senate Fiscal Agency, and his counterpart in the House Fiscal Agency is considering retirement after helping lawmakers navigate what promises to be a rough budget-crafting session.

CHICAGO — The new owners of the Detroit Medical Center kicked off the first phase of an $850 million capital program Tuesday afternoon, four days after closing the long-anticipated acquisition.

Standard & Poor's said Wednesday it raised its long-term and underlying rating to AA-minus from A on the Chelsea District Library's outstanding general obligation bonds as a result of the Michigan library's recent strong financial performance.

Michigan will allow local governments struggling with debt to refinance it at a net present-value loss under a new law passed by legislators and signed by outgoing Gov. Jennifer Granholm last week.

A Wayne County Circuit Court judge will rule in January on the latest legal wrangle that is part of a larger, years-long dispute over dueling plans for a new bridge serving the busy trade route between Detroit and Canada.

The Lansing Board of Water and Light, which provides electric service to 97,000 customers in Lansing, Lansing Township, and Delta Township, plans to issue about $250 million of tax-exempt bonds to finance construction of a new $182 million electric and steam-generating plant.

Moody's Investor's Service has downgraded $4.6 billion of Detroit sewer and water system revenue bonds citing a decline in debt service coverage, looming capital needs, and the risks associated with derivatives.

Detroit Mayor Dave Bing said the city early next year will begin offering residents "non-financial" incentives to relocate to certain areas under a plan to shrink its boundaries.

CHICAGO — Pre-subsidy interest rates ranged from 5.1% to 8.4% on $100 million of recovery zone economic development bonds that Detroit sold last week through a Michigan conduit.

CHICAGO — Fitch Ratings and Moody’s Investors Service hit Wayne County, Mich., with dual downgrades to the low single-A category last week as it prepares to sell $200 million of recovery zone economic development bonds Wednesday.

The junk-rated city of Detroit will access the market through a Michigan conduit Thursday as it seeks to raise $100 million to finance a new police headquarters in a vacant MGM casino.

Gov. Jennifer Granholm next week is expected to sign into law a $383 million capital budget that would fund dozens of projects at universities and community colleges across Michigan.

CHICAGO — Officials in Hamtramck met with the current and incoming state treasurers this week to continue to press their case for the cash-strapped city to become the first Michigan municipality to file for Chapter 9 bankruptcy.