(Reuters, 10/14/08.)

AUTOMAKERS COULD RETURN TO CONGRESS FOR HELP

U.S. automakers could turn to Congress after the November election to try to expedite $25 billion in government-bakced loans which Detroit manufacturers consider crucial to reversing their steep downward spiral.

The prospect of an economic stimulus bill moving before year’s end or in early January could provide an opening for General Motors Corp, Ford Motor Co., and Chrysler LLC and their allies on Capitol Hill to get the money moving faster than is now expected as financial pressures grow more acute, especially at GM.

“A stimulus package could be a vehicle for further steps.  i think people will take another look at whether there is a need for more clarity,” Alan Reuther, legislative director for the United Auto Workers, said.

Auto lobbyists do not discount the possibility of again working with sympathetic lawmakers on the loan issue, but note the chances of a stiumulus package clearing the House of Representatives and Senate within the next few months are uncertain.

Democratic leaders in the House pushed the idea forcefully on Monday as a way to hlep stave off a recession many fear is near.  President George W. Bush has so far resisted calls for a second stimulus plan.

A new Congress will be seated in early January and a new president will be sworn in weeks later.

Democratic presidential candidate Barack Obama, in Toledo, Ohio, where Chrysler has a plant, urged the Bush Administration on Monday to “fast track” the loans.  They cannot be issued until the Energy Department completes the necessary regulatory framework and other hurdles are cleared.

But the sinking American auto industry is urgently seeking certainty for its flow of capital as the global credit squeeze chokes its mainline and financing operations as well as suppliers and dealers.  Weak sales fell further recently because consumers could not obtain financing.  And GM was forced to beat back bankruptcy speculation last week over mounting liquidity concerns.

“General Motors, Ford, Chrysler need help right now,” John Engler, a former Michigan governor and president of the National Association of Manufacturers, told the Detroit Economic Club on Monday.

Engler called on the White House to intervene with the Energy Department on the loan program.  The $25 billion in credit assistance was approved by Congress last month to help Detroit meet a new federal mandate for producing more fuel efficient cars and trucks.

Other lobbyists said they were working “to move the process along” but did not go as far as Engler.

Shares of GM, which plummeted last week, rose sharply on Monday on prospects of accelerated government aid or a merger to help it survive.  Ford shares ended 20 percent higher after emerging from the weekend as the healthiest of the three distressed Detroit manufacturers.  Chrysler is privately held and controlled by Cerberus Capital management.

Energy Department officials said they expect to have loan criteria in place by Dece4mber as Congress ordered.  But additional environmental and other hurdles associated with the types of advanced technology projects likely to be proposed for funding will lengthen the time for approving financing.

The agency said Congress could have streamlined the process by waiving one or more requirements but chose not to.

“We are following the law and addressing realistic expectations,” said Healy Baumgardner, spokeswoman for Energy Secretary Sam Bodman.

GM, especially, is keeping its options open for possibly borrowing directly from the U.S. Federal Reserve.  The automaker did not discount a report over the weekend that this move might be in its playbook.

Fed and U.S. Treasury officials, focused on shoring up the creaky banking system, offered no comment on prospects for making available direct longer-term loans to manufacturers.

Peter Morici, an economist and industrial policy expert at the University of Maryland, said Fed lending is ideally geared for banking neds, not providing direct loans to other businesses.

“It’s not designed to be a general lending window,” Morici said.  “It’s really Washington’s job to break the log jam at the banks so that banks can start loaning money again.”

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(TV 9&10 News, 10/14/08.)

EAST JORDAN IRON WORKS MAKES SECOND ROUND OF CUTS

A northern Michigan manufacturer announced more cuts less than a week after its first round of layoffs.

East Jordan Iron Works is one of Charlevoix County’s biggest employers.  The company has now cut 41 workers in a one week span.

The Executive Vice President of the company cites a lower demand for its products, gas prices, and a slumping economy.

The company makes break-drums in heavy duty trucks, along with fire hydrants, water valves and other castings.

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(AP, 10/14/08.)

MICH. VOTERS TO DECIDE STEM CELL RESEARCH MEASURE

Michigan voters will be thrust into the crossroads of science, ethics and religion next month when they decide whether to loosen the state’s restrictions on embyonic stem cell research.

Supporters of the ballot measure say it could put Michigan researchers at the forefront of an emerging science that might discover cures for spinal cord injuries, diabetes, Alzheimer’s and a host of other illnesses.

Opponents say the research is unethical because it involves the use and destruction of human embryos.  Michigan Catholic Conference and Right to Life of Michigan are among the proposal’s opponents.

Many scientists believe embryonic stem cell research holds more promise for medical breakthroughs than less controversial adult stem or umbilical cord blood research.  Embryonic stem cells are more versatile.

“Maybe not in my lifetime, but eventually, the majority of therapies and cures will be coming from genetic therapy,” said Joe Schwarz, 70, a doctor and former Republican congressman from Michigan who chairs the pro-ballot CureMichigan campaign.

Michigan’s current stem cell laws are among the nations’s most restrictive.  Some embryonic stem cell research is allowed in Michigan, but only on stem cell lines already established by researchers in other states.

The stem cell measure, on the ballot as Proposal 2, would change state law to allow people to donate embryos left over from fertility treatments.  Thsoe embryos, not suitable for implantation, would otherwise bethrown away as medical waste.

An opposition gorup says the proposal would take away Michigan lawmakers’ ability to regulate the emerging discipline.

“There are a lot of reasons to vote ‘no’ on this, and one is that it would lead to unregulated research,” said David Doyle, a spokesman for an opposition group called Michigan Citizens Agaisnt Unrestricted Science and Experimentation.

Supporters counter that research using human embryos is regulated by federal law.  And the proposal spells out some other limitations that would be specific to Michigan.

The embryos would have to be donated.  Buying or selling human embryos for the research would be illegal.  Stem cells couldn’t be taken from embryos more than 14 days after cell division begins.

The measure takes on added significance because of possible upcoming changes to federal law.

president Bush restricted the use of federal money going to embryonic stem cell research.  But both Republican John McCain and Democrat Barack Obama have said they support relaxing federal restrictions.

That could result in more grant money and life sciences jobs in states prepared to capitalize on the changes.  California, for example, already plans to invest $3 billion on the research.

A study done for the Michigan Prospect, a Lansing-area think tank with several Democratic directors, suggest that even a 1 percent boost in biotech employment from stem cell research would lead to more than 400 new biotech jobs, not counting potential spinoff jobs.  it estimates a 5 percent boost in biotech employment would bring more than 2,000 jobs.

Stem cell ballot battles are relatively rare in other states.

In 2006, Missouri voters approved an amendment protecting stem cell research by a narrow margin, 51 percent to 49 percent.  Efforts to undo the proposal began almost immediately, although the counter proposals did not make the 2008 ballot.

In Florida, two competing stem cell proposals failed to make the ballot this year. One proposal would have baned state funding of embryonic stem cell research, while the other would have required the state to provide $20 million a year for such research.

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(WPBN TV 7&4 News, 10/15/08.)

IT’S THE FIRST OF ITS KIND IN DICKINSON COUNTY

IRON MOUNTAIN  –  Cheryl O’Neil suffered from domestic violence for years before finally getting out on her own.

“So many times you’re fearful that, you know, you’re going to be homeless,” said O’Neil.  “You’re going to be living on the street.”

Now O’Neil is helping other victims find permanent housing. Thanks to a $200,000 state housing grant, she and other members of the Dickinson County Collaborative Board have established a duplex for victims of domestic violence with special needs.

“Some have mental health issues, some hav esubstance abuse issues,” said organizer jeff Heino,  “and when you couple those with domestic violence, landlords aren’t very comfortable renting to individuals with those issues.”

Starting December 1, two families, each with one mother and two children, will be living in the home. They’ll be responsible for paying for their own utilities, but rent and couseling services will be taken care of.

But the free rent doesn’t mean residents won’t be busy.  Not only will all residents attend several counseling sessions a week, adults will also be required tosearch for permanet employment, if sufficiently mentally and emotionally stable.

“Many times in an abusive relationship, a victim doesn’t have the oppourtunityfor employment,” O’Neill said. “And many just don’t have many marketable skills, and that’s why this project gives hope to victims.”

Residents will also receive police security from violent partners as needed.

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(TV 9&10 News, 10/16/08.)

ECONOMY IN CRISIS:  HOMELESS STUDENTS ON THE RISE IN NORTHERN MICHIGAN

School districts across Northern Michigan tell 9 & 10 News that they are seeing an alarming rise in the number of homeless students.

Districts in a 7-county region had 600 students considered homeless in 2006-2007,  700 students in 2007-2008 and the counties are on pace to set a record this school year.  (Counties are: Grand Traverse, Emmet, Antrim, Kalkaska, Leelanau, Benzie, and Charlevoix.)

Traverse City Area Public Schools had 500 students considered homeless last year, and already has 200 this year…on a record pace.

Cadillac Area Public Schools [Wexford County] had 78 students considred homeless last year, and has more than 55 this year…a record pace.

To be considered homeless, students must live at a friend or relative’s home due to not being able to afford a shelter.  Reasons include foreclosures, lay-offs, evictions and more.  Some parents are looking for jobs in other states, but leave their children behind to get an education.

The federal McKinney-Vento Act requires that districts have liaisons to help homeless students get a good education.  Services include transportation help, tutoring, food assistance, shelter, couseling, school supplies, clothing and more.

Budgets for helping these students are wearing thin. Joan Abbot, the Student in Transition Program Coordinator for TCAPS, said the federal funding for programs only began to catch up in the past couple years–even though it was enacted about 20 years ago.

The economic crisis, coupled with inadequate funding, means many districts are stuggling to help their homeless students.

TO HELP STUDENTS:

  • TRAVERSE CITY AREA PUBLIC SCHOOLS: TCAPS has a fund set up for homeless students.  Makes checks out to “TCAPS”, and write “STEP Program” on the memo line.  There is also a food pantry at Traverse City High School.
  • CADILLAC AREA PUBLIC SCHOOLS:  CAPS is accepting food, clothing, and school supplies.

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(TV 7&4 News, 10/16/08.)

EXTRA FUNDING KEEPS NEW JOBS IN NORTHERN MICHIGAN

A multi-million dollar deal is at the center of an expansion project in northern Michigan that’s expected to bring in more jobs.

And it’s for that very reason that states have been competing for thier business.  Hagerty Insurance is planning to expand its business and was looking at options out of state to help make it happen.  But thanks more than two million dollars in a state tax credit the company is staying in Traverse City.

it’s an expansion that will cost millions and create hundreds of new jobs, but that’s why different states werre competing to bring Traverse City[’s hagerty Insurance to their area, in fact the company nearly turned out of state.

‘Particularly in Arizona where we looked at the possibility of expanding there, but that was not our preference,”  said hagerty Insurance Community Relations Manager Carmen Stevens.

But since the Michigan Economic Growth Authority awared the company a 2.2 million dollar tax credit Hagerty is keeping it’s business in Traverse City,  but the tax credit comes with two conditions.

“Hagerty will not be receiving any of the tax credits until they actually employ the people they’ve indicated they’ll be employing and on the private investment side building at least one new facility,”   said Tino Breithaupt, Senio9r Vice President of Economic Development at the Traverse City Area Chamber of Commerce.

The company is expected to bring in an extra 386 new jobs and has agreed to a seven million dollar building expansion for the tax credit.

The state has also jumped on board to fund a separate multi-million dollar deal for parking that would help Hagerty to expand and provide extra spaces for downtown businesses.

“That means there will be no impact to the general public on increased taxes.   This will be funded by the taxes that are generated by the new development,” said Jean derenzy Grand Traverse County Brownfield Redevelopment Coordinator.

A total of more than 3.9 million in state and local tax capture has also been awarded for the old town parking plan.  Officials say the next step is to ask for a one million dollar grant to lock in the plans and get the parking project moving.

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(TV 7&4 News, AP,  10/17/08.)

RESTORING GREAT LAKES:  A CAMPAIGN ISSUE

Both candidates promise to support restoration and cleanup.

GREAT LAKES REGION   –  Scientists warn that the Great Lakes are on the verge of ecological ruin from big-city sewage and invasive species.

Presidential candidates John McCain and Barack Obama promise to support restoration and cleanup.  But the nation’s financial crisis calls into question how those efforts will be funded.

Great Lakes advocates are begging the next president to fund a rescue plan expected to cost more than $20 billion.  The McCain and Obama campaigns both agree that the lakes need  help but argue over the approach.

Obama has released a five-point plan including $5 billion for restoring the great lakes’ health.  The McCain campaign says the fiscal crisis makes any specific funding pledge at this point an empty gesture.