The Michigan Daily - michigandaily.com
Thursday, April 16, 2009 - 5A
MICHIGAN BRIEFS
TRAVERSE CITY, Mich.
Granholm says
stimulus plan is
good for Michigan
Gov. Jennifer Granholm says the
Obama administration's econom-
ic recovery plan will be good for
Michigan, despite running up the
federal budget deficit.
Granholm discussed the plan's
likely effects on Michigan during
a town hall meeting Wednesday
in Traverse City. She is visiting a
number of cities to answer ques-
tions about the initiative.
The governor said about $18 bil-
lion in federal money would come
to Michigan, including $11 billion
in tax cuts and the rest in higher
spending on education, road con-
struction, law enforcement and
other areas.
She acknowledged it would
boost the national debt, but said
the top priority for now must be
stimulating the economy and put-
ting people back to work.
DETROIT
Delphi shareholders
Eight Midwest
states seek funds
for high-speed rail
MARK LENNIHAN/AP
Jim Press, president and vice chairman of Chrysler, steps out of a Fiat 500 at the New York International Auto Show yesterday.
F iat COtells Crys ler:e
Labor changes or no deal
Plan would include
fix-ups to three lines
allowing trains to
travel up to 110 mph
CHICAGO (AP) - Eight Mid-
western states hope to secure fed-
eral stimulus money for a network
of faster passenger trains with
Chicago as its hub - joining forces
to boost their chances of getting a
cut of $8 billion set aside for high-
speed rail.
The governors, including Illi-
nois Gov. Pat Quinn, said yesterday
they have sent a joint letter to U.S.
Department of Transportation
Secretary Ray LaHood asking him
to support the initiative.
Longtime proponents of high-
speed rail welcomed the show of
unity, sayingitshould help inwhat's
sure to be stiff competition among
states for the federal stimulus dol-
lars. California and New York are
among those vying for the funds.
"Getting eight governors to
agree where to go to lunch is a
challenge, so them agreeing on pri-
ority corridors is very good news,"
said Kevin Brubaker, of the Envi-
ronmental Law & Policy Center in
Chicago. "We'll still be competing
with other states, but at least we're
competing on the same team rath-
er than against each other."
A spokesman for Missouri Gov.
Jay Nixon, who also signed the let-
ter, agreed.
"If there's a unified presenta-
tion, it will present a stronger case
for us using some of these funds,"
said Scott Holste.
The multistate appeal comes
days before the White House is
expected to release further details
about the kinds of projects that
would qualify for the billions
marked for high-speed trains.
The governors' proposal,
dubbed the Midwest Regional
Rail Initiative and first conceived
a decade ago, focuses on upgrad-
ing three existing routes by 2014
- one between Chicago and St.
Louis, another between Chicago
and Madison, Wis., via Milwaukee
and a third between Chicago and
Pontiac, Mich., through Detroit.
Improvements to tracks and
equipment on those routes should
enable trains to reach speeds of 110
miles per hour, according to the
governors' letter. Currently, the top
speed of trains on the Chicago-St.
Louis corridor is just under80 mph.
Later phases of the project
would improve other lines, includ-
ing a route between St. Louis and
Kansas City, Mo.
Neither the letter nor a state-
ment from Nixon's office specifies
how much of the $8 billion the
states want, though they do esti-
mate that the project's first and
most critical phase would cost
around $3.5 billion.
Other governors who signed the
letter are: Indiana's Mitch Daniels,
Iowa's Chet Culver, Michigan's
Jennifer Granholm, Tim Pawlenty
of Minnesota, Ted Strickland of
Ohio and Wisconsin's Jim Doyle.
Chicago Mayor Richard Daley also
signed.
likely to get nothing In agreement, Italian
Bankrupt auto supplier Delphi
Corp. says its current shareholders
likely won't get any money for their
shares as the company's value con-
tinues plunging.
Troy, Mich.-based Delphi in
October revised its reorganization
plan to lower the value of its stock
to $108 million, down from about
$350 million in an earlier version.
But in court papers filed this
week, Delphi says "there is no sub-
stantial likelihood of a meaningful
distribution" to shareholders.
The Detroit News says in online
editions Wednesday that Delphi
shares are now valued at $36 mil-
lion. That's less than the loans ithas
received to stay in business since
filing for Chapter 11 bankruptcy
protection in October 2005.
DETROIT
Detroit plans $52M
summer school
expansion
Help for students who have
fallen behind and training for
teachers, principals and parents
are the major components of an
ambitious summer school pro-
gram planned by the Detroit Pub-
lic Schools.
District officials say the $52 mil-
lion Emergency Student Achieve-
ment Summer School Academies
will include classes for students
needing extra credits to stay on
track for graduation, and ACT
preparation and Advanced Place-
ment classes.
The Detroit News says a key to
the program is a Parent University
to help their children learn state-
mandated coursework.
- Compiled from
Daily wire reports
automaker would
get 20% stake in
troubled Chrysler
DETROIT (AP) - With just 15
days left before the U.S. govern-
ment pulls the plug on Chrysler,
the only man who appears able to
save the struggling automaker is
casting doubt 11
on whether
a deal can be
worked out.
Fiat CEO
Sergio Mar-
chionne, in
an interview
published MARCHIONNE
Wednesday,
said the Ital-
ian automaker will walk away
from a nonbinding agreement
to take a 20 percent stake in
Chrysler and share its small car
technology unless the U.S. auto-
maker's unions agree to major
cost cuts.
A Fiat spokesman confirmed
Marchionne's statements.
Chrysler, which is living on $4
billion in loans from the U.S. gov-
ernment, has to take on a partner
and gain concessions from unions
and debtholders by April 30, or
the Obama administration will
stop lending it money. No other
suitors have emerged, and it's
likely that no bankruptcy financ-
ing will be available, so Chrysler
would have little choice but to be
auctioned off in pieces.
Marchionne's comments,
made in an interview with the
Toronto Globe and Mail, could
be designed to pressure unions
to give further concessions. The
United Auto Workers union
already has agreed to cost reduc-
tions, but the Obama adminis-
tration has said it must agree to
further cuts to make Chrysler
more competitive with foreign
automakers.
The Canadian Auto Workers
union reached a deal with Gener-
al Motors Corp., but Chrysler says
the pact doesn't go far enough,
and the company has threatened
to pul out of Canada without
further cuts from the union.
The uncertainty adds to wor-
ries for Chrysler's 54,000 employ-
ees as well as thousands more
who work for parts suppliers and
dealers across North America.
"There's definitely some worry
and concern about what's going
on," said Brett Ward, 35, a 15-year
Chrysler worker who drives a
forklift at an assembly plant in the
Detroitsuburb of Sterling Heights.
"We haven't been asked to vote on
the contract changes yet."
Ward, who is far too young
to retire, just started classes to
become a nurse in case Chrysler
goes under. His factory, which
makes the midsize Chrysler
Sebring and Dodge Avenger, is
in the third week of a four-week
shutdown due to slow sales.
No one is entirely sure just how
much the unions have to give to
satisfy the U.S. government,
which said only that unions must
make concessions that are deeper
than those the Bush administra-
tion outlined when it approved
government loans last year.
Shortly after Marchionne's
comments were published, CAW
President Ken Lewenza said the
union would return to the bar-
gaining table with Chrysler on
Monday after a two-week hiatus.
But he later said the union won't
stray from the GM deal. The UAW
declined comment.
I I
4,000 attend Lansing Tea Party
Joe the Plumber
leads anti-tax,
anti-bailout rally
LANSING,Mich.(AP)-Cheered
along by "Joe the Plumber," 4,000
people from across Michigan pro-
tested againstfinancial bailouts and
taxes Tuesday at the state Capitol in
a mock rendition of the Boston Tea
Party revolt.
They waived signs exclaiming
"Stop the Fiscal Madness," "Read
My Lipstick! No More Bailouts"
and "The Pirates Are in D.C."
Children held banners objecting
to the rising national debt being
passed along to them.
"I'm really opposed to spending
the way out of our problem," said
Deborah Mourray, a 56-year-old
business administrator from the
Detroit suburb of Troy who partic-
ipated in her first demonstration.
Her friend Patty Fish, a49-year-
old executive recruiter from Troy,
said it was her first protest, too.
"I'm tired of sitting back and
watching this happen. I needed
to do something," said Fish, who
fears higher taxes.
President Barack Obama and
Gov. Jennifer Granholm, both
Democrats, drew the ire of many
protesters, though others vented
anger at both major political par-
ties. One sign declared "It's Tea
Time! Fire All Politicians." Others
simply carried American flags.
"How I run my home is I don't
spend more money so my situation
improves," Mourray said. "Save
and conserve."
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