DETROIT BUSINESS MAIN 01-15-07 A 1 CDB 1/12/2007 6:38 PM Page 1
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http://www.crainsdetroit.com Vol. 23, No. 3 JANUARY 15 – 21, 2007 $2 a copy; $59 a year
©Entire contents copyright 2007 by Crain Communications Inc. All rights reserved THIS JUST IN Delphi gets OK to take DEQ may delay $3.4B Cerberus-led offer Troy-based Delphi Corp. received approval Friday from U.S. Bankruptcy Judge Robert Drain to move forward with a $3.4 billion investment package from a group of investors rules about ships led by New York City- based Cerberus Capital Man- discharge ballast water into the Great Lakes are also agement L.P. PHOTO COURTESY OF FAURECIA required to install systems to treat the water to elim- Cerberus’ offer provides Ballast water wouldn’t Arvin Paschal secures components to inate the foreign pests that have hurt native species the capital necessary for a front-end bumper module at Faurecia in the Great Lakes and caused Delphi to exit bankruptcy North America's Sterling Heights have to be treated economic and environmental and is preferred by Delphi assembly plant, which began damage. over a competing $4.7 bil- production in August for Daimler- BY AMY LANE Some 100 oceangoing vessels lion offer proposed in De- ChryslerAG. CAPITOL CORRESPONDENT docked at Michigan ports in 2006, cember by Dallas based but the majority did not discharge Highland Capital Manage- LANSING — Michigan may modify new environ- ballast water. The DEQ estimates ment L.P., said Claudia Pic- mental rules aimed at reducing foreign invaders Faurecia may that only four ships would be like- cinin, Delphi’s financial like zebra mussels and gobies in the Great Lakes. ly to fall under the treatment re- communications manager. Some cargo companies had argued that the rules, quirement. Piccinin said Delphi which took effect Jan. 1, would force them to bypass But John Jamian, president of evaluated Highland’s offer Jamian buy to grow, Michigan ports this shipping season. the Seaway Great Lakes Trade Asso- and was concerned about All oceangoing vessels are now required to apply ciation, a Birmingham-based group representing several issues and said it for a Michigan Department of Environmental Quality per- may re-evaluate its view of mit before they can use Michigan ports. Ships that See Ballast, Page 29 the Highland offer if those but only if it issues are addressed. She declined to say what the is- sues are. Cerberus can either fits plan walk away or provide more time for its offer if Delphi does not reach a contract BY BRENT SNAVELY agreement with the United CRAIN’S DETROIT BUSINESS Jazzing things up Auto Workers and its other unions and its biggest cus- James Orchard, president of tomer, General Motors Corp., Faurecia North America, said the New Music Hall director by Jan. 30, Piccinin said. French interiors supplier may Delphi filed for Chapter consider acqui- 11 bankruptcy in October sitions as it in- acts quickly to rejuvenate 2005 and is trying to exit creases its mar- bankruptcy by midyear. ket share, but — Brent Snavely the company ticket sales, endowment will be selective and plans to BY SHERRI BEGIN Covansys says it will file grow mostly by CRAIN’S DETROIT BUSINESS 3Q report from 2006 soon winning addi- tional contracts It’s taken Vincent Paul only six months to Farmington Hills-based Orchard with the Big shake things up at Music Hall Center for the Per- Covansys Corp. (Nasdaq: Three. forming Arts Inc. CVNS) said Friday that it “Because of a But then, he’s been planning how he’d run a had completed its reassess- AUTO SHOW lot of the distress theater for more than two decades. ment of revenue-recogni- Highlights from in the supplier Until his family moved to Farmington Hills tion policies and would the 2007 North market — partic- when he was 9, Paul lived near Hitsville USA soon file its 10-Q earnings American ularly in this re- in Detroit. After earning his degree in theater report for the third quarter International gion — we see from Michigan State University, he headed to of 2006. Auto Show, that as advanta- New York. On Nov. 9 the company Page 24. geous for Faure- For the next 22 years, while serving as a announced it would delay cia to grow, and stage manager, tour director and executive di- the report after being ad- possibly grow inorganically,” Or- rector for various organizations, Paul toured vised by its accounting chard said. “But we are not going to nationally and internationally with perform- firm, BDO Seidman L.L.P., to do so on a stupid basis. I don’t sub- ers. At each new venue, he’d take note of how examine some accounting scribe to the Stockman model, so things were done, from marketing to sponsor- policies for fixed-price and we are not going to do that.” ships to education programs. multiple-element con- The “Stockman model” is a ref- “When I ended up becoming president of JOHN SOBCZAK erence to former Reagan adminis- Music Hall, I knew what I was going to do,” See This Just In, Page 2 Vincent Paul is in his dream job: Running the Music Hall Center See Faurecia, Page 27 for the Performing Arts. See Music Hall, Page 28
Wireless companies beef up networks, services to meet CRAIN’S LIST business demands, Largest accounting firms, NEWSPAPER Page 11 Page 16 DETROIT BUSINESS MAIN 01-15-07 A 2 CDB 1/12/2007 6:59 PM Page 1
Page 2 CRAIN’S DETROIT BUSINESS January 15, 2007
The company said that those mission staff as an intern more lion in 2005; and Greektown fin- September, is complete. THIS JUST IN shutdowns will cost it about $200 than 16 years ished 2006 with revenue of $345 Asahi Tec is investing $205 mil- million and the charges will be ago. million, compared with $335.6 mil- lion of equity in Metaldyne and ■ From Page 1 taken in the fourth quarter of The planning lion a year earlier. Metaldyne’s existing credit and 2006. The company declined to commission re- — Robert Ankeny receivables facilities are being re- tracts, most of which were divest- identify the location of the affect- views and financed with new credit of $670 ed as part of the sale of the compa- ed plant or plants. makes recom- million. ny’s state and local government — Brent Snavely mendations to Salvation Army dedication set Asahi Tec’s major shareholders business during the second quar- Detroit City Coun- The Salvation Army was expected are Belgium-based RHJ Internation- ter last year. cil on rezoning to dedicate its renovated, $24-mil- al SA, Japan-based Mitsui & Co. Ltd. The company said the reassess- Doner gets Electrolux contract and other plan- lion Southeast Michigan Adult and Chuo Mitsui Growth Capital In- ment will not result in restating Southfield-based advertising ning-related Rehabilitation Center in down- vestment Limited Partnership II as any financial statements but that Todd agency Doner is now the agency of matters. town Detroit on Sunday. well as Metaldyne’s largest stock- its third-quarter statement may record for Bloomington, Ill.-based Todd takes over from deputy di- The 355,000-square-foot center holder, Grennwich, Conn.-based differ from preliminary informa- vacuum cleaner-maker Electrolux rector Marcus Loper, who served is a short-term residential pro- Heartland Industrial Partners L.P. tion reported on Nov. 14. Home Care Products North America. as interim director since Bruhn gram for men who abuse drugs — Brent Snavely — Tom Henderson The first campaign, rolling out retired last March. Loper plans to and alcohol. Amenities at the 300- American Axle to spend about the new “Electrolux Intensity” retire effective March 26. bed center include, a 700-person Cooper-Standard to close vacuum, begins today and in- M. Rory Bolger, a 21-year veter- dining room, a computer lab and a $140M on worker buyouts cludes television, print and online an with the commission staff, was gymnasium. Ohio fluid systems plant Detroit-based American Axle & components. appointed acting deputy director Renovations began in 2004 at as of Jan. 1. the building, which was con- Novi-based Cooper-Standard Au- Manufacturing Holdings Inc. (NYSE: Doner declined to say how tomotive Inc. said Friday that it AAM) said Thursday that 1,473 much the Electrolux billing is — Robert Ankeny structed in 1918. The rehabilita- tion center, which has been at the plans to close its Archbold, Ohio, employees have accepted a buyout worth. The account includes fluid systems facility by the third offer that will eventually save the strategic planning, media and cre- site since 1963, remained open Casino revenue tops $1.3B during construction. quarter of 2008. company money, but will initially ative. Existing production and manu- Detroit’s three casinos logged — Sheena Harrison cost about $140 million. Doner has been agency of facturing equipment will be trans- their best year in 2006, passing The program was offered to all record for Electrolux’s separate ferred to other Cooper-Standard $1.3 billion in revenue, the Michi- United Auto Workers at American Eureka brand since 2005. Asahi Tec finishes acquisition operations in North America. gan Gaming Control Board reported Axle plants in Detroit and Three — Bill Shea The Archbold operation em- Friday. This topped 2005’s total Rivers, Mich., and Buffalo, of Metaldyne Corp. ploys approximately 215. Cooper- Tonawanda and Cheektowaga, all Detroit appoints new planner revenue of $1.23 billion by $75 mil- Plymouth-based Metaldyne Corp. Standard makes automotive body- in New York. lion, an increase of more than 6 said Thursday that its agreement sealing systems, fluid-handling American Axle will take Marcell Todd Jr. was appointed percent, despite Greektown Casino to be acquired by Asahi Tec Corp. systems, and noise and vibration charges to cover the cost of the director of the Detroit City Planning L.L.C. falling $9.4 million, nearly 3 for $1.2 billion, first announced in control systems. program in 2006 and said the buy- Commission, succeeding Marsha percent, behind its 2005 revenue. out program will save the compa- Bruhn who retired last year after MGM Grand Detroit L.L.C. report- ny about $100 million annually. 22 years. ed $489.6 million revenue for 2006, American Axle also said that it Todd is a graduate of Cass Tech- compared with $460.7 million for CORRECTION plans to idle a portion of its U.S. nical High School and Lawrence 2005; MotorCity Casino L.L.C.had Ⅲ A story on Page 3 of the Jan. 1 issue should have said that the Gerald production capacity dedicated to Technological University’s College of nearly $468.7 million in 2006 rev- R. Ford Presidential Library and Museum has a full-time staff of 21. midsize light trucks. Architecture. He joined the com- enue, compared with $432.2 mil-
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January 15, 2007 CRAIN’S DETROIT BUSINESS Page 3 CRAIN’S WSU mulls biz Ph.D. program INDEX
Good news: Earnings projection boosts Biz school hopes move will attract faculty HEEPSKIN SPECS BorgWarner stock. S Page 4. The degree: Ph.D. in business with BY SHERRI BEGIN gram at its Jan. The launch of the program at concentrations in financing, marketing or CRAIN’S DETROIT BUSINESS 24 meeting. WSU is long overdue, Barrett management, including 60 hours of course work If current said. “We’re one of the few busi- and 30 hours of dissertation work. Wayne State University may shortages of ness schools of our size that does Cost: About $300,000 a year by the third year of launch a doctoral program in business facul- not offer a doctoral program.” the program, primarily to fund stipends of about business this fall, a move aimed ty in the U.S. The University of Michigan and $30,000 each for 10-12 doctoral students who at making the university more will assist in teaching undergraduate classes. continue, the Michigan State University current- competitive in attracting busi- Tampa-based ly are the only two AACSB-ac- The competition: The University of Michigan and ness faculty. Association to Michigan State University are the only two credited institutions in Michigan Provost Nancy Barrett said the Advance Colle- institutions accredited by the Association to Small Business that offer doctoral programs in Ph.D. program also will help ad- Barrett giate Schools of Advance Collegiate Schools of Business in Solutions: Paycheck isn’t dress shortages by turning out Business pro- business. Michigan that offer doctoral programs in the only way to business. and compensate employees. highly qualified potential faculty. jects a U.S. shortage of 1,100 peo- However, Lawrence Technologi- Lawrence Technological University the University of Phoenix also offer doctoral Page 18. ple with doctoral degrees in busi- cal University and the University of The WSU Board of Governors is degrees in business. These organizations appear in this expected to consider the new pro- ness this year and 2,400 by 2013. See Wayne, Page 29 week’s Crain’s Detroit Business:
A123Systems...... 24 Bagley Housing Association ...... 14 BorgWarner Inc...... 4 Bridgewater Interiors L.L.C...... 27 Business Loan Express L.L.C...... 14 Business News Photos Inc...... 12 Cadence Innovation ...... 27 Campbell-Ewald ...... 13 A ‘perfect space’ Carhartt Inc...... 28 Chevron Technology Ventures L.L.C. 24 Cingular Wireless ...... 11 Cobasys ...... 24 Edag can use new home Collins & Aikman Corp...... 4 Continental Automotive Systems. . . 24 Conway MacKenzie & Dunleavy. . . . 27 Delphi Corp...... 1 to make production lines Detroit Catholic Pastoral Alliance . . 14 Detroit Lions ...... 28 Detroit Pistons ...... 28 BY BRENT SNAVELY Detroit Planning Commission . . . . . 14 Detroit Public Schools ...... 28 CRAIN’S DETROIT BUSINESS Detroit Red Wings ...... 3 Detroit Regional Chamber...... 29 After nearly three years of searching, Edag Inc. found the ideal Detroit Tigers ...... 3 place for its headquarters: A 150,000-square-foot building with of- Doner ...... 13 fice and shop-floor space in Auburn Hills. Edag Inc...... 3 Enlighten Inc...... 13 The company, which does offers engineering and design for the Faurecia North America ...... 1 automotive industry, had outgrown four other locations in Madi- Google Inc...... 13 son Heights. Grant Thornton L.L.P...... 18 Hubbell, Roth & Clark Inc...... 11 BOUT DAG Then, Warren-based MSX Internation- Huntington National Bank ...... 14 A E al Inc. decided to vacate a building it Huron Capital Partners L.L.C...... 26 Parent: Edag was leasing at 275 Rex Blvd. in Auburn Huron Fund II L.P...... 26 Engineering + Design AG Johnson Controls Inc...... 24, 27 Hills. MSX, a competitor of Edag’s, Johnson Controls-Saft Advanced Employees: 240 used the building for similar purposes. Power Solutions L.L.C...... 24 Annual sales: $53M “It is perfect space for us,” Edag Lawrence Technological University . . 3 Mack Avenue Records ...... 28 What does it do?: President Volker Amelung said. Michigan Department of Develops and tests MSX terminated its lease in October Environmental Quality...... 1 prototype vehicles, and Edag completed its move Jan. 2. Michigan Manufacturers Assoc. . . . 29 provides engineering Michigan PSC ...... 14 The lease was brokered by Southfield- Michigan State University...... 3 program management, based Signature Associates. Microsoft...... 24 designs and oversees Edag, which is owned by Fulda, Ger- Momentum ...... 13 the construction of MSX International Inc...... 3 assembly lines. many-based Edag Engineering + Design Music Hall Center ...... 1 AG, was first established in the United NAWBO ...... 14 States in 1994. Today, Edag has about Nemeth Burwell P.C...... 18 North American International 240 employees in the U.S. with about $53 million in annual sales. Auto Show ...... 24, 29 Plunkett & Cooney P.C...... 11 JOHN F. MARTIN Edag develops and tests prototype vehicles, provides engineer- ing program management, designs assembly lines and oversees Plymouth Management Co...... 26 Edag President Volker Amelung says the the space in its new Auburn Hills headquarters will Plymouth Venture Partners I L.L.C. . 26 facilitate a production line design contract with General Motors Corp. Edag already produces a their construction. Ramco-Gershenson Properties Trust 14 removable hard-top for the Pontiac Solstice and the Saturn Sky (above). See Edag, Page 29 Roush Enterprises Inc...... 29 Saga Communications Inc. 28 Seaway Great Lakes Trade Assoc. . . . 1 Semco Energy Gas Co...... 14 Sprint Nextel Corp...... 12 Total Employee Assistance & Management Inc...... 18 Tower Automotive Inc...... 4 U.S. Small Business Administration 14 University of Michigan ...... 3 University of Phoenix ...... 29 Verizon Wireless...... 11 Wayne State University ...... 3 Double play gives boost to WKRK WDFN 1130 AM ...... 28 Wind Point Partners L.L.C...... 26 Wireless Giant ...... 12 WKRK’s Southfield-based signal provides better WJR 760 AM ...... 28 Simulcasts aimed at helping WXYT fidelity and reception in some areas for a broader WKRK 97.1 FM...... 3 reach. WRCJ 90.9 FM ...... 28 BY BILL SHEA His approach was to cancel WTVS-Channel 56...... 28 “I wanted to present the most enticing picture ZenaComp Inc...... 18 CRAIN’S DETROIT BUSINESS WKRK’s 7-11 p.m. sports talk to the teams so they would want to continue their show, “Parker and the Man,” partnership with us,” Murphy said. BANKRUPTCIES ...... 28 When the general manager of WKRK 97.1 FM BRIEFLY ...... 14 and earmark that time for The result was Thursday’s announcement of struck a deal to add Detroit Tigers and Detroit Red BUSINESS DIARY ...... 24 Wings simulcasts, it wasn’t done to bolster the sta- simulcast games that originate new, multiyear deals with the baseball and hockey CALENDAR ...... 15 tion’s ratings and revenue, both of which have de- with WXYT. Simulcasting on teams, including the simulcasts. The contract is CAPITOL BRIEFINGS ...... 6 clined. WKRK improves reception be- for three years. CLASSIFIED ADS...... 22 Instead, it was done to keep the teams on their cause WXYT’s signal is spotty “It solves their coverage problem with the AM CHRISTOPHER CRAIN . . . . . 8 LETTERS ...... 8 flagship, WKRK’s CBS Radio-owned sister station, in some locations — an issue station and doesn’t interfere with the major thrust team owner Ilitch Holdings Inc. of the (WKRK) format,” said Dick Kernen, vice MARY KRAMER...... 9 WXYT 1270 AM, an all-sports station. OPINION ...... 8 “That’s the only reason I came up with the ap- Murphy wanted to resolve, said Karen president of industry relations at Southfield-based Specs Howard School of Broadcast Arts, and longtime PEOPLE ...... 20 proach that I did,” said Kevin Murphy, general man- Cullen, vice president of corporate communica- RUMBLINGS...... 30 ager and senior vice president for both stations. tions for Ilitch. See WKRK, Page 28 WEEK IN REVIEW ...... 30 DETROIT BUSINESS MAIN 01-15-07 A 4 CDB 1/12/2007 6:11 PM Page 1
Page 4 CRAIN’S DETROIT BUSINESS January 15, 2007 TAKING STOCK NEWS ABOUT DETROIT AREA PUBLIC COMPANIES Tower Automotive may have to sell assets if it can’t find financing
BY ROBERT SHEREFKIN Kirik says Tower’s three bond- Tower has much in common CRAIN NEWS SERVICE holders gave no reason for termi- with plastics and interiors suppli- nating their Dec. 19 commitment er Collins & Aikman Corp., which is After a nearly two-year struggle letter to underwrite a company selling off assets after it unsuccess- to restructure in U.S. Bankruptcy stock offering. Efforts to seek com- fully tried to emerge from bank- Court, Tower Automotive Inc. could ment from those financiers last ruptcy as an independent compa- be forced to sell its assets to the week were unsuccessful. ny last year. highest bidders. To be sure, there is no shortage Like Collins & Aikman, Tower To avoid that fate, the automo- of investors for distressed auto could face difficulty finding a buy- tive stamping giant must develop a parts-makers. But the longer a dis- er for all of its assets. Some of new financing plan to replace a tressed company struggles, the those assets are attractive, such as $250 million deal that fell apart more cash it takes to save it. And Tower’s Chicago plant where it Thursday, say sources familiar few auto suppliers have emerged supplies the Ford Five Hundred with company plans. The arrange- whole from Chapter 11. Most are and Mercury Montego. ment would have financed Tower’s plan to emerge from Chapter 11 sold outright or in parts, say bank- Other parts would be tough to this year. ruptcy experts. sell, such as Tower’s former A.O. On Friday, Tower spokesman All told, 36 U.S. auto suppliers Smith frame-making business. The Joe Kirik said the company has have filed bankruptcy since 1999. equipment there is old, and the two other offers in hand and will Tower filed in February 2005. processes are dated. evaluate them within the next two Novi-based Tower is struggling The stamping industry suffers weeks. Tower continues to pursue as industry conditions worsen. from too much capacity because its goal of emerging from bank- Ford continues to cut production. stamping is one industry that has ruptcy as an independent compa- High steel prices further burden largely escaped consolidation. ny in the first half of this year, he the capital-intensive sector. And Fitzgerald says U.S. Census data said. the professional fees and expenses list 789 motor vehicle stamping Tower (Pink Sheets: TRWAQ), needed to operate in bankruptcy businesses in 1998. Six years later, headed by CEO Kathleen Ligocki, court are significant. there were 788. makes light-truck frames, complex For automakers, Tower “is an Plante & Moran estimates that body assemblies, suspensions and expense in the propping up of an- the stamping industry is running other sophisticated stamped parts. other supplier — with many more at about 65 percent of its capacity. Its largest customer is Ford Motor on the horizon,” says Craig In general, 75 percent to 80 percent Co., which provides 30 percent of Fitzgerald, a partner with the con- is considered break-even. its revenue. sulting firm Plante & Moran P.L.L.C. From Automotive News Earnings projection boosts BorgWarner stock
BY BRENT SNAVELY to $4.10 a share. dustry. For the first nine months CRAIN’S DETROIT BUSINESS BorgWarner makes transmis- of 2006 BorgWarner reported rev- sions, of engine-timing systems, enue of $3.16 billion. BorgWarner Inc.’s stock shot up turbochargers and transmission Brent Snavely: (313) 446-0406, 10.6 percent on Thursday after the components for the automotive in- [email protected] Auburn Hills-based company post- ed 2007 earnings projections that are higher than Wall Street’s pro- jections. BorgWarner (NYSE: BWA) said STREET TALK in a statement that it expects 2007 earnings will be $4.60 a share to THIS WEEK’S STOCK TOTALS: 45 GAINERS, 28 LOSERS, 6 UNCHANGED $4.80 a share. Analysts, on aver- CDB’S TOP PERFORMERS 1/12 1/5 PERCENT age, were expecting earnings of CLOSE CLOSE CHANGE $4.58 a share, according to 14 ana- 1. Syntel Inc. $31.67 $26.59 19.11 lysts tracked by Yahoo!Finance. 2. ArvinMeritor Inc. 19.27 17.49 10.18 com. 3. Meadowbrook Insurance Group 10.03 9.15 9.62 The company’s stock closed at 4. BorgWarner Inc. 64.21 58.60 9.57 $64.21 Friday, up $5.41 from its 5. Lear Corp. 31.51 28.83 9.30 close of $59 on Wednesday. Borg- 6. Covansys Corp. 24.46 22.64 8.04 Warner said last week it expects to 7. Taubman Centers Inc. 54.15 50.33 7.59 achieve sales growth of 7 percent Universal Truckload Services Inc. 23.62 22.31 5.87 to 9 percent in 2007 despite moder- 8. ate global vehicle production 9. American Axle & Mfg. Holdings 18.98 17.93 5.86 growth. 10. Perceptron Inc. 8.87 8.40 5.60 “In 2007, our global business will 1/12 1/5 PERCENT CDB’S LOW PERFORMERS CLOSE CLOSE CHANGE face two distinct business environ- ments,” BorgWarner Chairman 1. Visteon Corp. $7.56 $8.18 -7.58 and CEO Tim Manganello said in a 2. Semco Energy Inc. 5.84 6.08 -3.95 statement. “In Europe and Asia, 3. DTE Energy Co. 45.95 47.67 -3.61 our operations are expected to 4. CMS Energy Corp. 16.00 16.47 -2.85 flourish, experiencing strong 5. Rockwell Medical Technologies 6.90 7.09 -2.68 growth across both engine and 6. Dearborn Bancorp Inc. 18.48 18.98 -2.63 drivetrain, while our North Amer- 7. Somanetics Corp. 22.32 22.71 -1.72 ican operations will remain fo- 8. Borders Group Inc. 21.51 21.88 -1.69 cused on stabilization and adapt- 9. Ramco-Gershenson Properties 37.20 37.70 -1.33 ing to the new dynamics of a 10. United Auto Group Inc. 23.35 23.66 -1.31 rapidly changing market.” Source: Bloomberg News. From a list of publicly owned companies with headquarters BorgWarner has not announced in Wayne, Oakland, Macomb, Washtenaw or Livingston counties. Note: Stocks trading 2006 year-end results yet but has at less than $5 are not included. said it expects to earn $3.95 a share DBpageAD.qxd 1/3/200711:13AMPage1
© 2007 United Parcel Service of America, Inc. UPS, the UPS brandmark, and the color brown are registered trademarks of United Parcel Service of America, Inc. All rights reserved. Avery, Marks-A-Lot, the Crown Cap Design, and all other Avery brands are trademarks of, and used here under license from, Avery Dennison Corporation. DETROIT BUSINESS MAIN 01-15-07 A 6 CDB 1/12/2007 6:10 PM Page 1
Page 6 CRAIN’S DETROIT BUSINESS January 15, 2007 Gov names bipartisan budget panel Gov. Jennifer Granholm of Michigan regent; Joe New Web site for rental housing man of the state House Appropria- Hansknecht, senior policy adviser on Wednesday announced Schwarz, former U.S. rep- tions Committee, R-DeWitt, has for the House Democratic policy of- an advisory panel, co- resentative; and Monica The Michigan State Housing Devel- been named vice president of gov- fice, has been named the education chaired by former Govs. Kostielney, president and opment Authority announced the de- ernmental affairs for the Michigan department’s legislative director. velopment Wednesday of www. William Milliken and James CEO of the Michigan Association of Insurance Agents. Ⅲ Kenneth Brooks, partner in the michiganhousinglocator.com to Blanchard, to review the Catholic Conference. Ⅲ Bruce Umpstead, former Lansing office of Honigman Miller state’s fiscal picture and provide a list of rental housing director of Michigan State University’s Schwartz and Cohn L.L.P., has been offer recommendations. available around the state. Lans- PROM/SE project, has been named named managing partner. He re- The panel will report to PSC wants input on video ing-based MSHDA is partnering director of the Michigan Department places Dan Demlow, who retired. Granholm by the end of dispute complaints with Ann Arbor-based rental hous- of Education’s new office of Amy Lane: (517) 371-5355, alane@ the month, as she pre- ing listing service Rentlinx L.L.C. to education technology. Lisa crain.com pares for her Feb. 6 State CAPITOL BRIEFINGS State utility regulators generate listings for the site. of the State address and Amy Lane are seeking input on a 2008 budget proposal. complaint process that Comings & goings The panel includes: Paul Hille- will be part of Michigan’s new gonds, senior vice president at DTE franchising law governing Ⅲ Andy Levin, former Democratic Energy Co.; Lou Anna Simon, presi- providers of video services, includ- state Senate contender and of Granholm, Patterson tiff dent of Michigan State University; ing telecommunications and cable counsel at Southfield law firm Klimist, McKnight, Sale, McClow & Frank Kelley, former Michigan at- TV companies. The Michigan Public Service Com- Canzano, P.C., has been named a torney general; Don Gilmer, Kala- mission wants public comment on deputy director in the Michigan De- mazoo County administrator and highlights Medicaid issue procedures that will allow the PSC partment of Labor & Economic former state budget director; Doug to review unresolved disputes be- Growth. Also, Deputy Director BY AMY LANE have a $41 billion Roberts, former state treasurer; tween a provider and customer, Sharon Bommarito returns to John Porter, former president of CAPITOL CORRESPONDENT budget.” between a provider and local gov- overseeing the Unemployment Insur- He added that Eastern Michigan University and for- ernments that issue franchises, ance Agency and other agencies, LANSING — Oakland County Ex- mer state superintendent for pub- Oakland County and between providers. and acting Deputy Director Doug ecutive L. Brooks Patterson blasted is the only coun- lic instruction; Dan DeGrow, super- Public Act 480, passed in Decem- Kalinowski returns to his former po- Gov. Jennifer Granholm’s veto of a ty that con- intendent of the St. Clair County ber, requires the commission to sition as director of the Michigan bonding bill primarily designed to tributes more in Regional Educational Service Agency propose a complaint process to the Occupational Safety and Health Ad- help the county save money on taxes to Lansing and former Senate majority Legislature by June 1. Public com- ministration. funding retiree health care, but the than it receives Ⅲ leader; S. Martin Taylor, University ments are due to the PSC by Feb. 8. Scott Hummel, former chair- political fight is also calling atten- in goods and ser- tion to a little-discussed impact on Patterson vices. “There’s Medicaid. about $5.5 billion that we’ve left on Here’s the issue: The federal gov- the table in Lansing, and they can’t ernment considers employer contri- credit us a crummy $3 million.” butions to pension plans and health He said Granholm “was looking and welfare funds — whether by for any excuse” to veto the bill, in private or public employers — retaliation for his petition drive count toward a state’s overall per- that contributed to the early ending capita personal income. And per- of the single-business tax, accord- sonal income helps determine the ing to published reports. %XPERIENCE .ETWORK ,EAD federal Medicaid matching rate and Patterson said the he did not hear state’s allocation of federal dollars. of the administration’s concerns “If they set up a bond, when the about the potential Medicaid im- money from the bond is actually put pact until after the House Bill 6694 into a fund, that counts as personal had cleared the Legislature and income,” said Kathy Albetski, chief about two days before Granholm’s 3INCE THE "ROAD 3CHOOL %XECUTIVE -"! of the regional economic informa- deadline to veto the bill. HAS PREPARED PROFESSIONALS FOR LEADERSHIP IN THE tion system for the U.S. Department Boyd said the bill moved quickly GLOBAL MARKETPLACE of Commerce Bureau of Economic in the Legislature’s last week of ses- Analysis. sion in December. “By the time we s A CURRICULUM FOCUSED ON ENHANCING STRATEGIC “Per-capita personal income is knew quantitatively what the po- THINKING AND DECISION MAKING SKILLS used in the formula for Medicaid. tential costs were, the bill was dis- So if your per capita goes up, the charged from committee,” she said. s A TEAM BASED LEARNING ENVIRONMENT THAT formula could go down.” Boyd said budget director Mary PROMOTES NETWORKING AND PERSONAL GROWTH And that, says the governor’s Lannoye did raise the Medicaid is- office, is important to revenue- sue at some point. s A MONTH EVENING PROGRAM AT -35S strapped Michigan. The governor’s Boyd would not state specific office expects a revenue-estimating -ANAGEMENT %DUCATION #ENTER IN 4ROY costs of the bill but said it could be conference Thursday to identify a “in the millions,” depending on lo- budget shortfall as high as $1 billion cal-government actions. 3PRING %-"! %XPLORATION 0ROGRAMS for the current and next fiscal years. In May, Granholm’s task force on “From our perspective, when #OMBINING AN INFO SESSION CLASS VISITS AND DISCUSSION local-government services and fis- we’re staring down a $1 billion cal stability recommended such leg- WITH STUDENTS ALUMNI AND FACULTY BEGINNING AT PM deficit, we cannot be signing legisla- islation as part of a wide-ranging re- tion that adds to our costs,” said Liz 4HURSDAY *ANUARY -ONDAY -ARCH port. The task force said the state Boyd, Granholm’s press secretary. should “consider policy mandates “This is not about Brooks Patter- -ONDAY &EBRUARY