Original Story: detroitnews.com
Several Michigan-based companies posted second-quarter earnings Thursday.
Dow Chemical Co. reported second-quarter profit of $1.22 billion.
On a per-share basis, the Midland-based company said it had net income of 97 cents. Earnings, adjusted for non-recurring gains, came to 91 cents per share. A Los Angeles investment lawyer is following this story closely.
The results topped Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 81 cents per share.
The specialty chemicals maker posted revenue of $12.91 billion in the period, which did not meet Street forecasts. Five analysts surveyed by Zacks expected $13.11 billion.
Dow Chemical shares have risen almost 10 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed almost 3 percent. The stock has decreased roughly 5 percent in the last 12 months.
CMS Energy Corp. disclosed a second-quarter net income of $67 million. A Boston investment lawyer provides assistance to clients in investment matters.
On a per-share basis, the Jackson-based company said it had profit of 25 cents.
The results did not meet Wall Street expectations. The average estimate of three analysts surveyed by Zacks was for earnings of 33 cents per share.
The energy company posted revenue of $1.35 billion in the period.
Automotive manufacturer Gentex Corp. reported second-quarter net income of $74.6 million.
The Zeeland-based company said it had net income of 25 cents per share.
The results matched Wall Street expectations.
The maker of automatic-dimming rearview mirrors posted revenue of $379.3 million in the period, exceeding Street forecasts. A Dearborn corporate lawyer advises clients on financial and tax implications.
Gentex shares have fallen 9 percent since the beginning of the year. The stock has climbed 14 percent in the last 12 months.
Syntel Inc., an information technology outsourcing company based in Troy, announced second-quarter earnings of $60.6 million.
On a per-share basis, the company said it had net income of 72 cents.
The results exceeded Wall Street expectations.
30 July 2015
28 July 2015
MARKETING FIRM HEADING TO SOUTHFIELD, ADDING 50 JOBS
Original Story: freep.com
Digital marketing firm, HelloWorld, is moving its headquarters from Pleasant Ridge to Southfield in October -- and plans to hire about 50 new workers.
“We're looking forward to HelloWorld's new office space in Southfield,” Jen Gray, senior vice president of brand, marketing and creative Services at HelloWorld, said today. “The ever-growing technology sector in metro Detroit is well served by the amenities on and near the Town Center campus.” Trade show displays allow your company brand and marketing message to stand out from the competition.
It is set to move to 43,500 square feet that is now vacant on the 19th-21st floors of 3000 Town Center.
The firm, formerly known as ePrize, creates promotional campaigns and loyalty programs. It also has offices in Detroit, New York, Chicago, Los Angeles, Nashville, Phoenix and Seattle. Brands it works with include: Coca-Cola, Microsoft, Gap and Procter & Gamble. A San Francisco business lawyer provides professional legal counsel and extensive experience in many aspects of business law.
The company said it will relocate about 300 workers, and add about 50 new full-time positions.
Founded in 1999 in Bloomfield Hills, the company had a 10-year lease in Pleasant Ridge that expires this year.
As part of its deal, the company said, it plans to invest nearly $6.5 million into the space, about $6 million of which will be in information technology, furniture and fixtures.
CEO Peter DeNunzio had said earlier this year that the firm was attracted to the center's amenities. It has restaurants and retailers and is next to a Westin hotel. A Rochester small business lawyer offers legal consulting specifically designed to stop legal problems from developing before they start.
To entice the business to move to Southfield, the city offered a property abatement for the next 10 years.
“The city of Southfield continues to attract new businesses because we offer competitive advantages that other cities don’t,” said Rochelle Freeman, Southfield's business and economic development director . “From our central location to our solid infrastructure and diverse mix of industries -- Southfield remains the business hub in Michigan."
Digital marketing firm, HelloWorld, is moving its headquarters from Pleasant Ridge to Southfield in October -- and plans to hire about 50 new workers.
“We're looking forward to HelloWorld's new office space in Southfield,” Jen Gray, senior vice president of brand, marketing and creative Services at HelloWorld, said today. “The ever-growing technology sector in metro Detroit is well served by the amenities on and near the Town Center campus.” Trade show displays allow your company brand and marketing message to stand out from the competition.
It is set to move to 43,500 square feet that is now vacant on the 19th-21st floors of 3000 Town Center.
The firm, formerly known as ePrize, creates promotional campaigns and loyalty programs. It also has offices in Detroit, New York, Chicago, Los Angeles, Nashville, Phoenix and Seattle. Brands it works with include: Coca-Cola, Microsoft, Gap and Procter & Gamble. A San Francisco business lawyer provides professional legal counsel and extensive experience in many aspects of business law.
The company said it will relocate about 300 workers, and add about 50 new full-time positions.
Founded in 1999 in Bloomfield Hills, the company had a 10-year lease in Pleasant Ridge that expires this year.
As part of its deal, the company said, it plans to invest nearly $6.5 million into the space, about $6 million of which will be in information technology, furniture and fixtures.
CEO Peter DeNunzio had said earlier this year that the firm was attracted to the center's amenities. It has restaurants and retailers and is next to a Westin hotel. A Rochester small business lawyer offers legal consulting specifically designed to stop legal problems from developing before they start.
To entice the business to move to Southfield, the city offered a property abatement for the next 10 years.
“The city of Southfield continues to attract new businesses because we offer competitive advantages that other cities don’t,” said Rochelle Freeman, Southfield's business and economic development director . “From our central location to our solid infrastructure and diverse mix of industries -- Southfield remains the business hub in Michigan."
DOCTORS HOSPITAL IN PONTIAC FILES FOR BANKRUPTCY AGAIN
Original Story: freep.com
One of the region's last independent hospitals has filed for bankruptcy but plans to stay open.
The physician-owned Doctors Hospital of Michigan in Pontiac listed debts between $10 million and $50 million in its Chapter 11 petition filed this week in U.S. Bankruptcy Court in Detroit. A Detroit business bankruptcy attorney is reviewing the details of this case.
It is the second bankruptcy declaration in a decade for the struggling 105-year-old hospital, which was known as North Oakland Medical Centers during its last bankruptcy in 2008. Years earlier, it was called Pontiac General Hospital.
Hospital officials said Friday that their hospital is losing money and weighed down by debt that the business inherited as part of the hospital's 2008 sale to a private physicians' group. Flint-based McLaren Health Care system was a minority partner in that deal; McLaren's stake was bought out three years later by a group of 42 doctors.
The hospital's single off-site location, Waterford Ambulatory Care Center, closed earlier this month due to "cash-flow constraints" but could reopen in the future, said attorney Max Newman of Butzel Long, who is representing Doctors Hospital.
Doctors Hospital itself remains open and there are no plans to close, said hospital CEO John Ponczocha,
Hospital officials say they hope to reorganize the business's finances in bankruptcy so that it can potentially continue as an independent hospital. The hospital has about 200 full-time-equivalent employees.
"There's a number of potentials here," Newman said. "It could be purchased, it could merge with somebody. But at this point, the effort is going to be primarily to keep it running as a standalone entity."
The bankruptcy filing lists Wisconsin Physicians Service Insurance Co. as the hospital's largest creditor with about $6.4 million. Long said there are also significant loans from hospital insiders which are outstanding but not on the list. A Detroit hospital litigation attorney is following this story closely.
There are few independent hospitals left in southeast Michigan. Several formerly independent hospitals have been absorbed into larger systems, including Garden City Hospital (now a part of for-profit Prime Healthcare Services) and Mercy Memorial Hospital in Monroe (now part of the nonprofit ProMedica Health System).
Another independent hospital, Crittenton Hospital in Rochester, has a pending deal to join the St. Louis-based Ascension Health system.
Doctors Hospital of Michigan
• Original hospital dates to 1910
• Formerly known as North Oakland Medical Centers and Pontiac General Hospital
• Currently owned by a physicians group and is for-profit.
• Has about 200 full-time-equivalent employees
• Last filed for bankruptcy in 2008
One of the region's last independent hospitals has filed for bankruptcy but plans to stay open.
The physician-owned Doctors Hospital of Michigan in Pontiac listed debts between $10 million and $50 million in its Chapter 11 petition filed this week in U.S. Bankruptcy Court in Detroit. A Detroit business bankruptcy attorney is reviewing the details of this case.
It is the second bankruptcy declaration in a decade for the struggling 105-year-old hospital, which was known as North Oakland Medical Centers during its last bankruptcy in 2008. Years earlier, it was called Pontiac General Hospital.
Hospital officials said Friday that their hospital is losing money and weighed down by debt that the business inherited as part of the hospital's 2008 sale to a private physicians' group. Flint-based McLaren Health Care system was a minority partner in that deal; McLaren's stake was bought out three years later by a group of 42 doctors.
The hospital's single off-site location, Waterford Ambulatory Care Center, closed earlier this month due to "cash-flow constraints" but could reopen in the future, said attorney Max Newman of Butzel Long, who is representing Doctors Hospital.
Doctors Hospital itself remains open and there are no plans to close, said hospital CEO John Ponczocha,
Hospital officials say they hope to reorganize the business's finances in bankruptcy so that it can potentially continue as an independent hospital. The hospital has about 200 full-time-equivalent employees.
"There's a number of potentials here," Newman said. "It could be purchased, it could merge with somebody. But at this point, the effort is going to be primarily to keep it running as a standalone entity."
The bankruptcy filing lists Wisconsin Physicians Service Insurance Co. as the hospital's largest creditor with about $6.4 million. Long said there are also significant loans from hospital insiders which are outstanding but not on the list. A Detroit hospital litigation attorney is following this story closely.
There are few independent hospitals left in southeast Michigan. Several formerly independent hospitals have been absorbed into larger systems, including Garden City Hospital (now a part of for-profit Prime Healthcare Services) and Mercy Memorial Hospital in Monroe (now part of the nonprofit ProMedica Health System).
Another independent hospital, Crittenton Hospital in Rochester, has a pending deal to join the St. Louis-based Ascension Health system.
Doctors Hospital of Michigan
• Original hospital dates to 1910
• Formerly known as North Oakland Medical Centers and Pontiac General Hospital
• Currently owned by a physicians group and is for-profit.
• Has about 200 full-time-equivalent employees
• Last filed for bankruptcy in 2008
13 July 2015
UNIVERSITIES SAY FUNDING SYSTEM BROKE, LAWMAKERS DISAGREE
Original Story: freep.com
It's a simple fact — $12 million is much bigger than $1.2 million.
That's why Oakland University President George Hynd and the Board of Trustees didn't have to really think about the rationale for increasing tuition by 8.48% last week and exceeding a state tuition cap. The Rochester school declined $1.2 million from the state in incentive money in exchange for getting $12 million in tuition revenue. An Atlanta university litigation attorney advises clients of the education issues involved in funding disparities and lack of educational resources.
Eastern Michigan University made the same calculation in June — $1 million is much smaller than $10 million.
The simple math is a why university presidents across Michigan are coming to a similar conclusion: The incentive money attached to a state tuition cap and other performance measures put in place by Gov. Rick Snyder isn't a big enough carrot to keep tuition down.
If OU would have forfeited more money — like $6 million — for going over the cap, a different decision might have been made, Hynd admits.
University presidents said they think more schools will go with bigger increases in coming years unless a new funding system is put in place.
A completely new funding system isn't likely, but lawmakers say there will be talks this fall about tweaks, including increasing the penalty for exceeding the tuition cap. An Atlanta education lawyer understands the context surrounding education issues at the local, state, and federal level.
"I think we've got to come back with some response to a tuition hike that is five times inflation," said state Rep. Al Pscholka, R-Stevensville, the chairman of the House appropriations committee and former chairman of the House higher education subcommittee. "I don't want us to overreact, but we need some response. We do need to put some teeth into it. I think we need to look at base funding and if they are going to increase tuition by X percent over cap, then we need to reduce the base funding. That's an option."
Snyder is taking a wait-and-see approach.
"The governor's office is always analyzing the impact of its initiatives and we will continue to monitor the role performance funding has played in holding down the cost of a college education for both new and returning students," spokesman Dave Murray said.
Hynd — and other university presidents — said they would like to see the funding formula looked at as well. They say they need more funding and blame state cuts — including a 15% cut in 2011 — for making these hikes necessary. A Cleveland education attorney is following this story closely.
State Rep. Sam Singh, D-East Lansing, agrees more state funding is needed.
"I'm always disappointed by these increases, because you know they will impact students," said Singh, who serves on the state House's higher education subcommittee. "I'm not surprised though. There isn't enough resources dedicated by the state to higher education.
"I hope my colleagues won't overreact and hurt those institutions because it just hurts students."
OU's decision
Last Monday and Tuesday, Hynd and other OU officials spent the day on the phone, talking with lawmakers, trying to make the case for why they were about to exceed the state-imposed tuition cap.
The argument boiled down to numbers. The amount of money needed to do the things Oakland wanted to do — add faculty, increase staff, upgrade technology, improve facilities — was much greater than the $1.2 million being offered by the state under performance funding. An 8.48% tuition hike would raise $12 million, enough to get a good start on what a new strategic plan told them they needed to be doing.
"From a pure dollar point, it makes all the sense to go over the cap," Hynd said. "We're getting squeezed from both ends. The state, over a number of years, has disinvested in higher education, and even though they have added money back recently, still are underfunding us. Parents and students want us to keep costs low.
"I think there needs to be a much larger conversation about how the public wants to fund higher education."
Michigan has two ways of dividing up its pot of money headed to the 15 public universities.
The bulk of the money comes through what is known as the "base," which is money coming to the universities the same way it has been coming for decades. There's no formula for how the money is divided. The amounts were set decades ago in political deals and the differences between the universities have stayed mostly the same. A Charleston education lawyer is reviewing the details of this case.
The amounts range from the $295 million headed to the University of Michigan to the $12 million earmarked for Lake Superior State University.
Then, additional money slated for the universities is divided up based on a formula that looks at performance measures like graduation rates, percentage of students getting Pell Grants and percent of budget spent on instruction, along with several other items. In order to qualify for that pot of money, universities have to stay under a tuition cap, set this year at 3.2%.
This year, $20 million — or a 1.5% increase in total higher education funding — was divided up using the performance funding
Under the formula, Grand Valley State University gets the biggest percentage hike — 3%; while Wayne State University gets the smallest — 0.4%. Two years ago, Wayne State gave up its performance funding in favor of an 8.9% tuition increase and received an additional $7 million in tuition revenue. This year, Wayne State settled for a 3.2% hike.
Snyder introduced the cap and the performance funding in 2012.
"The tuition cap was included because the governor wants to keep a college education in reach for all students," Snyder spokesman Murray said. "We know that many students are leaving college with significant debt. Michigan needs to attract more students to post-secondary education, and cost is unquestionably an obstacle for many families."
Eastern's decision
Like Oakland, Eastern's decision to go over the cap was also a simple numbers game.
The university could stay under the cap and get about $1 million in performance funding. Or it could raise tuition 7.8% and get $10 million.
President Susan Martin, who stepped down earlier this month, said the extra money is needed after years of keeping tuition increases down, including no increase five years ago.
"We have a very tight balance sheet," Martin said. "Our balance sheet is too thin. We need to improve our reserves and use the money to help with needed capital improvements. We never have enough money for what we need to do. We've tried to manage as best as we can, but this step was needed."
Eastern is a rare state public university to see a dip in its unrestricted net assets in the past couple of years, financial statements show. Unrestricted net assets are money that the university can spend however it wishes to spend. In many cases, university administrators and boards have targeted the money toward specific projects, but can change where that money is being spent if they wish.
At Eastern, unrestricted net assets dropped from $24.7 million at the end of the 2012-13 school year to $20.9 million at the end of the 2013-14 school year, the latest data available.
Oakland, on the other hand, saw its unrestricted net assets increase during the same time period, from $147 million to $154 million.
"Unspent investment income in the endowment fund was the primary funding source which increased OU's unrestricted net assets in FY2014," Vice President for Finance and Administration John Beaghan told the Free Press in a June e-mail. "Investment income can not be counted on annually to fund base expenditures, therefore, it is not a source of funding that can offset tuition increases."
Change the system?
No Michigan public university president will admit right now that they will raise tuition over whatever the cap is next year. Several, however, said they won't be surprised if there are a couple more universities that go over the cap for the same reasons as OU.
"The university board has the right to react to (the cap)," said Grand Valley President Thomas Haas. "They have the fiduciary responsibility to set the tuition rate and have to determine what is best for their university."
Haas likes the performance funding — "it brings accountability," he said. Grand Valley has done well under the funding formula, ranking first this year, with a 3% increase under performance funding.
But, he pointed out, the bulk of the money is still tied up in the base. And, Haas adds, that base has been cut over the last decade, making tuition the largest revenue source for universities, not state aid.
That's echoed by Daniel Hurley, the CEO of the Presidents Council, State Universities of Michigan.
"If states begin reinvesting, tuition caps are unnecessary," Hurley said.
So how should Michigan fund its universities?
That depends on who you ask.
Central Michigan President George Ross has been the leading advocate to switching to a system much like K-12 funding in Michigan that assigns a dollar figure to each student. Universities then get state aid in a simple formula — number of students enrolled times dollar amount attached to each student equals funding.
"Our funding levels were set decades ago by political decisions," he said. "Dollars should follow students."
Central last year got $3,787 per student in state aid, according to figures from the nonpartisan House Fiscal Agency. That's below the state average of $4,775.
If Central got the average, it would have $31 million more in state aid.
The five lowest per-student schools – U-M-Dearborn, U-M-Flint, Saginaw Valley State University, Grand Valley and OU are the five newest universities in the state. OU has the lowest per-pupil state funding at $2,870. Wayne State has the highest, at $8,414.
Lake Superior State University President Thomas Pleger said the state funding should make sure to fund universities according to missions, including those who keep tuition low.
"Long-term, Michigan needs to have a series of access universities," Pelger said. "The state should invest so they can keep tuition low."
Convincing state lawmakers to change the system will be hard.
"The formula, for the most part, is working," said state Rep. Mike McCready, R-Bloomfield Hills, who is the chairman of the House higher education appropriations subcommittee. "When you create a formula, you need to stick with it.
"At the end of the day, each student will make their choice on where to go to school."
Tuition in Michigan
Michigan's public universities have set tuition for next year. Here's the increase and the average sticker cost for an in-state freshmen for a full year.
It's a simple fact — $12 million is much bigger than $1.2 million.
That's why Oakland University President George Hynd and the Board of Trustees didn't have to really think about the rationale for increasing tuition by 8.48% last week and exceeding a state tuition cap. The Rochester school declined $1.2 million from the state in incentive money in exchange for getting $12 million in tuition revenue. An Atlanta university litigation attorney advises clients of the education issues involved in funding disparities and lack of educational resources.
Eastern Michigan University made the same calculation in June — $1 million is much smaller than $10 million.
The simple math is a why university presidents across Michigan are coming to a similar conclusion: The incentive money attached to a state tuition cap and other performance measures put in place by Gov. Rick Snyder isn't a big enough carrot to keep tuition down.
If OU would have forfeited more money — like $6 million — for going over the cap, a different decision might have been made, Hynd admits.
University presidents said they think more schools will go with bigger increases in coming years unless a new funding system is put in place.
A completely new funding system isn't likely, but lawmakers say there will be talks this fall about tweaks, including increasing the penalty for exceeding the tuition cap. An Atlanta education lawyer understands the context surrounding education issues at the local, state, and federal level.
"I think we've got to come back with some response to a tuition hike that is five times inflation," said state Rep. Al Pscholka, R-Stevensville, the chairman of the House appropriations committee and former chairman of the House higher education subcommittee. "I don't want us to overreact, but we need some response. We do need to put some teeth into it. I think we need to look at base funding and if they are going to increase tuition by X percent over cap, then we need to reduce the base funding. That's an option."
Snyder is taking a wait-and-see approach.
"The governor's office is always analyzing the impact of its initiatives and we will continue to monitor the role performance funding has played in holding down the cost of a college education for both new and returning students," spokesman Dave Murray said.
Hynd — and other university presidents — said they would like to see the funding formula looked at as well. They say they need more funding and blame state cuts — including a 15% cut in 2011 — for making these hikes necessary. A Cleveland education attorney is following this story closely.
State Rep. Sam Singh, D-East Lansing, agrees more state funding is needed.
"I'm always disappointed by these increases, because you know they will impact students," said Singh, who serves on the state House's higher education subcommittee. "I'm not surprised though. There isn't enough resources dedicated by the state to higher education.
"I hope my colleagues won't overreact and hurt those institutions because it just hurts students."
OU's decision
Last Monday and Tuesday, Hynd and other OU officials spent the day on the phone, talking with lawmakers, trying to make the case for why they were about to exceed the state-imposed tuition cap.
The argument boiled down to numbers. The amount of money needed to do the things Oakland wanted to do — add faculty, increase staff, upgrade technology, improve facilities — was much greater than the $1.2 million being offered by the state under performance funding. An 8.48% tuition hike would raise $12 million, enough to get a good start on what a new strategic plan told them they needed to be doing.
"From a pure dollar point, it makes all the sense to go over the cap," Hynd said. "We're getting squeezed from both ends. The state, over a number of years, has disinvested in higher education, and even though they have added money back recently, still are underfunding us. Parents and students want us to keep costs low.
"I think there needs to be a much larger conversation about how the public wants to fund higher education."
Michigan has two ways of dividing up its pot of money headed to the 15 public universities.
The bulk of the money comes through what is known as the "base," which is money coming to the universities the same way it has been coming for decades. There's no formula for how the money is divided. The amounts were set decades ago in political deals and the differences between the universities have stayed mostly the same. A Charleston education lawyer is reviewing the details of this case.
The amounts range from the $295 million headed to the University of Michigan to the $12 million earmarked for Lake Superior State University.
Then, additional money slated for the universities is divided up based on a formula that looks at performance measures like graduation rates, percentage of students getting Pell Grants and percent of budget spent on instruction, along with several other items. In order to qualify for that pot of money, universities have to stay under a tuition cap, set this year at 3.2%.
This year, $20 million — or a 1.5% increase in total higher education funding — was divided up using the performance funding
Under the formula, Grand Valley State University gets the biggest percentage hike — 3%; while Wayne State University gets the smallest — 0.4%. Two years ago, Wayne State gave up its performance funding in favor of an 8.9% tuition increase and received an additional $7 million in tuition revenue. This year, Wayne State settled for a 3.2% hike.
Snyder introduced the cap and the performance funding in 2012.
"The tuition cap was included because the governor wants to keep a college education in reach for all students," Snyder spokesman Murray said. "We know that many students are leaving college with significant debt. Michigan needs to attract more students to post-secondary education, and cost is unquestionably an obstacle for many families."
Eastern's decision
Like Oakland, Eastern's decision to go over the cap was also a simple numbers game.
The university could stay under the cap and get about $1 million in performance funding. Or it could raise tuition 7.8% and get $10 million.
President Susan Martin, who stepped down earlier this month, said the extra money is needed after years of keeping tuition increases down, including no increase five years ago.
"We have a very tight balance sheet," Martin said. "Our balance sheet is too thin. We need to improve our reserves and use the money to help with needed capital improvements. We never have enough money for what we need to do. We've tried to manage as best as we can, but this step was needed."
Eastern is a rare state public university to see a dip in its unrestricted net assets in the past couple of years, financial statements show. Unrestricted net assets are money that the university can spend however it wishes to spend. In many cases, university administrators and boards have targeted the money toward specific projects, but can change where that money is being spent if they wish.
At Eastern, unrestricted net assets dropped from $24.7 million at the end of the 2012-13 school year to $20.9 million at the end of the 2013-14 school year, the latest data available.
Oakland, on the other hand, saw its unrestricted net assets increase during the same time period, from $147 million to $154 million.
"Unspent investment income in the endowment fund was the primary funding source which increased OU's unrestricted net assets in FY2014," Vice President for Finance and Administration John Beaghan told the Free Press in a June e-mail. "Investment income can not be counted on annually to fund base expenditures, therefore, it is not a source of funding that can offset tuition increases."
Change the system?
No Michigan public university president will admit right now that they will raise tuition over whatever the cap is next year. Several, however, said they won't be surprised if there are a couple more universities that go over the cap for the same reasons as OU.
"The university board has the right to react to (the cap)," said Grand Valley President Thomas Haas. "They have the fiduciary responsibility to set the tuition rate and have to determine what is best for their university."
Haas likes the performance funding — "it brings accountability," he said. Grand Valley has done well under the funding formula, ranking first this year, with a 3% increase under performance funding.
But, he pointed out, the bulk of the money is still tied up in the base. And, Haas adds, that base has been cut over the last decade, making tuition the largest revenue source for universities, not state aid.
That's echoed by Daniel Hurley, the CEO of the Presidents Council, State Universities of Michigan.
"If states begin reinvesting, tuition caps are unnecessary," Hurley said.
So how should Michigan fund its universities?
That depends on who you ask.
Central Michigan President George Ross has been the leading advocate to switching to a system much like K-12 funding in Michigan that assigns a dollar figure to each student. Universities then get state aid in a simple formula — number of students enrolled times dollar amount attached to each student equals funding.
"Our funding levels were set decades ago by political decisions," he said. "Dollars should follow students."
Central last year got $3,787 per student in state aid, according to figures from the nonpartisan House Fiscal Agency. That's below the state average of $4,775.
If Central got the average, it would have $31 million more in state aid.
The five lowest per-student schools – U-M-Dearborn, U-M-Flint, Saginaw Valley State University, Grand Valley and OU are the five newest universities in the state. OU has the lowest per-pupil state funding at $2,870. Wayne State has the highest, at $8,414.
Lake Superior State University President Thomas Pleger said the state funding should make sure to fund universities according to missions, including those who keep tuition low.
"Long-term, Michigan needs to have a series of access universities," Pelger said. "The state should invest so they can keep tuition low."
Convincing state lawmakers to change the system will be hard.
"The formula, for the most part, is working," said state Rep. Mike McCready, R-Bloomfield Hills, who is the chairman of the House higher education appropriations subcommittee. "When you create a formula, you need to stick with it.
"At the end of the day, each student will make their choice on where to go to school."
Tuition in Michigan
Michigan's public universities have set tuition for next year. Here's the increase and the average sticker cost for an in-state freshmen for a full year.
SCHOOL
|
% INCREASE
|
AVERAGE TUITION COST
|
Oakland University
|
8.48
|
$12,491
|
Eastern Michigan University
|
7.8
|
$10,417
|
University of Michigan - Flint
|
3.2
|
$11,562
|
University of Michigan - Dearborn
|
3.2
|
$11,458
|
Wayne State University
|
3.2
|
$10,416
|
Northern Michigan University
|
3.2
|
$9,680
|
Western Michigan University
|
3.2
|
$11,029
|
Saginaw Valley State University
|
3.2
|
$8,691
|
Michigan Technological University
|
3.1
|
$14,165
|
Grand Valley State University
|
3
|
$11,078
|
University of Michigan - Ann Arbor
|
2.7
|
$13,486
|
Michigan State University
|
2.7
|
$13,560
|
Lake Superior State University
|
2.67
|
$10,522
|
Ferris State University
|
2.65
|
$10,696
|
Central Michigan University
|
2.6
|
$11,800
|
06 July 2015
FORMER DMC CHIEF DIES IN PANAMA AMID KICKBACK PROBE
Original Story: freep.com
A former head of the Detroit Medical Center who was later charged in one of the largest fraud and corruption investigations in Canadian history has died in custody in Panama.
Dr. Arthur Porter, 59, CEO of DMC from 1999 through 2003, died Wednesday of cancer while under armed guard in a Panama City hospital. The death was announced by Porter's biographer, Jeff Todd, who said the cause was lung cancer that had spread to the bone and liver.
Before his transfer to the hospital this spring, Porter had been in Panama's La Joya Prison following his 2013 arrest in that country on fraud, conspiracy and money laundering charges related to the construction of a $1.3 billion so-called super hospital in Montreal. A Birmingham criminal lawyer is following this story closely.
Porter, who left the DMC to head McGill University's hospital network, was accused of taking as much as $22.5 million in bribes in a kickback scheme for the super hospital's construction contract.
At least seven other individuals also faced criminal charges for the kickback allegations, according to the Montreal Gazette.
The newspaper reported that Porter's extradition to Quebec had been put on hold earlier this year as his lawyer challenged his detention in prison. It does not appear that Porter ever faced trial for the allegations.
A spokeswoman for the Canadian Department of Foreign Affairs would not comment Wednesday night on any specifics of Porter's case. A Harrisonburg white collar crime lawyer is experienced in the effective resolution of white collar crime lawsuits as related to business related crimes.
A native of Sierra Leone, Porter was a radiation oncology specialist who became CEO of DMC in May 1999, when the then-struggling hospital system was burning through nearly $100 million a year. Although he slashed thousands of jobs, consolidated hospitals and sold off clinics, DMC was still a money-loser by September 2003, when Porter resigned under pressure.
In a memoir released last year that he wrote while in prison, Porter claimed that in 2001, he received a phone call from President George W. Bush offering him the job of U.S. Surgeon General, according to the Montreal Gazette. Porter declined Bush's offer.
Porter left the U.S. in 2004 to become executive director of McGill University's hospital network. In 2008, he was named to a seat on Canada's spy agency watchdog committee, gaining access to Canadian state secrets.
At the time of Porter's arrest in 2013, DMC officials told the Free Press that he was never suspected or accused of any wrongdoing during his years in Detroit. He arrived in Detroit in 1991 as a member of the radiation oncology department at the DMC-affiliated Wayne State University School of Medicine.
"We certainly didn't see any behavior that would have caused us to believe he was involved in improper activities," a former DMC board member, Stephen D'Arcy, said at the time. "It's almost bizarre the kinds of things he was involved in apparently in Canada."
A DMC spokesperson could not be reached for comment late Wednesday.
According to Porter's biographer, Porter was forced to smuggle chemotherapy drugs into prison to keep himself alive and, despite repeated letters to the Canadian embassy in Panama for better medical care, wasn't granted access to cancer treatment until this year.
He spent his final days on high doses of morphine for the pain, his biographer wrote in a statement posted online.
The Montreal Gazette reported that Porter's wife pleaded guilty in December to money laundering and was sentenced to two years in prison. A San Francisco corporate lawyer represents clients in corporate criminal charges and corporate finance cases.
In attempts to recover $17.5 million of the $22.5 million that was allegedly defrauded, Quebec authorities have seized properties belonging to Porter and his family in Michigan, Florida and the Caribbean and bank accounts in the U.S. and other countries, the newspaper said.
A former head of the Detroit Medical Center who was later charged in one of the largest fraud and corruption investigations in Canadian history has died in custody in Panama.
Dr. Arthur Porter, 59, CEO of DMC from 1999 through 2003, died Wednesday of cancer while under armed guard in a Panama City hospital. The death was announced by Porter's biographer, Jeff Todd, who said the cause was lung cancer that had spread to the bone and liver.
Before his transfer to the hospital this spring, Porter had been in Panama's La Joya Prison following his 2013 arrest in that country on fraud, conspiracy and money laundering charges related to the construction of a $1.3 billion so-called super hospital in Montreal. A Birmingham criminal lawyer is following this story closely.
Porter, who left the DMC to head McGill University's hospital network, was accused of taking as much as $22.5 million in bribes in a kickback scheme for the super hospital's construction contract.
At least seven other individuals also faced criminal charges for the kickback allegations, according to the Montreal Gazette.
The newspaper reported that Porter's extradition to Quebec had been put on hold earlier this year as his lawyer challenged his detention in prison. It does not appear that Porter ever faced trial for the allegations.
A spokeswoman for the Canadian Department of Foreign Affairs would not comment Wednesday night on any specifics of Porter's case. A Harrisonburg white collar crime lawyer is experienced in the effective resolution of white collar crime lawsuits as related to business related crimes.
A native of Sierra Leone, Porter was a radiation oncology specialist who became CEO of DMC in May 1999, when the then-struggling hospital system was burning through nearly $100 million a year. Although he slashed thousands of jobs, consolidated hospitals and sold off clinics, DMC was still a money-loser by September 2003, when Porter resigned under pressure.
In a memoir released last year that he wrote while in prison, Porter claimed that in 2001, he received a phone call from President George W. Bush offering him the job of U.S. Surgeon General, according to the Montreal Gazette. Porter declined Bush's offer.
Porter left the U.S. in 2004 to become executive director of McGill University's hospital network. In 2008, he was named to a seat on Canada's spy agency watchdog committee, gaining access to Canadian state secrets.
At the time of Porter's arrest in 2013, DMC officials told the Free Press that he was never suspected or accused of any wrongdoing during his years in Detroit. He arrived in Detroit in 1991 as a member of the radiation oncology department at the DMC-affiliated Wayne State University School of Medicine.
"We certainly didn't see any behavior that would have caused us to believe he was involved in improper activities," a former DMC board member, Stephen D'Arcy, said at the time. "It's almost bizarre the kinds of things he was involved in apparently in Canada."
A DMC spokesperson could not be reached for comment late Wednesday.
According to Porter's biographer, Porter was forced to smuggle chemotherapy drugs into prison to keep himself alive and, despite repeated letters to the Canadian embassy in Panama for better medical care, wasn't granted access to cancer treatment until this year.
He spent his final days on high doses of morphine for the pain, his biographer wrote in a statement posted online.
The Montreal Gazette reported that Porter's wife pleaded guilty in December to money laundering and was sentenced to two years in prison. A San Francisco corporate lawyer represents clients in corporate criminal charges and corporate finance cases.
In attempts to recover $17.5 million of the $22.5 million that was allegedly defrauded, Quebec authorities have seized properties belonging to Porter and his family in Michigan, Florida and the Caribbean and bank accounts in the U.S. and other countries, the newspaper said.
LAWYERS WANT LIMIT ON VICTIM STATEMENTS AGAINST FATA
Original Story: detroitnews.com
Federal officials are challenging a request to limit how many victims can offer impact statements at the sentencing next week of a Metro Detroit oncologist who unnecessarily treated patients who were told they had cancer.
Lawyers for Dr. Farid Fata on Wednesday filed a brief in which they sought to quash the government’s attempt to include more than 100 victim impact statements, some of whom, they said, do not qualify as victims. A Detroit health care lawyer has experience with multiple industry types and implication of detrimental health care practices or incidents in the state of Michigan.
“Defendant ... move(s) this honorable court to strike all written and/or oral statements of ‘alleged’ victims who do not qualify as a victim” in part, the attorneys said, because only 10 patients have been identified in an indictment.
In their filing Thursday, federal officials argued the court is not required to find that “the relatives of patients and/or the patients are indeed victims” under the Crime Victims’ Rights Act. “All of the individuals who have submitted letters to the Court are former patients or family members of former patients of Dr. Farid Fata. ... As such they are individuals with knowledge of the defendant’s background, character and conduct.” A Detroit health care lawyer is reviewing the details of this case.
Sentencing for Fata is scheduled to start Monday. It’s expected to last at least a week in Detroit federal court before Judge Paul Borman.
Fata pleaded guilty in federal court in September to 16 counts of health care fraud, money laundering and conspiracy to give or receive kickbacks. His plea covered 10 cases.
The once-popular oncologist with offices in Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park faces up to 175 years in prison, a $250,000 fine on the fraud counts and up to 20 years as well as a $500,000 fine for money laundering.
In an 86-page memorandum filed in U.S. District Court in May, prosecutors cited $34.7 million in fraudulent health care billings and Fata’s indifference for the well-being of his patients in demanding a lengthy sentence. A Cleveland medical malpractice lawyer specializes in medical malpractice and medical negligence claims.
In a court filing Wednesday, Fata’s attorneys claim that although the government had received some 150 victim impact letters “involving another 100 or so patients or their relatives who were suffering from “solid” tumor cancers … two medical experts for defendant have verified that many of the solid tumor patients are not truly ‘victims’ ” as defined by law. The attorneys also say they’re “providing unreliable or inaccurate information to the Court,” according to the motion.
As a result, the court filing said, Fata is “requesting that in the absence of a finding that each of the patients identified in the 150 victim impact letters or who will speak in Court, are in fact ‘victims’… or that their information is reliable and accurate, that this Court should strike those written statements, and not permit those relatives to speak in open Court.”
According to the response U.S. Attorney Barbara McQuade submitted, while “information in some of the victims’ letters may not be perfectly accurate in every respect — memories fade, emotion colors interactions, grief overwhelms many of the family members. … this is true of virtually any statement submitted to the court by persons touched by a crime.”
Federal officials also said “given the scope of Fata’s indiscriminate mistreatment,” not every victim will be officially identified through the government’s investigation.
Additionally, the solid tumor patients’ statements should be considered since “the government’s two experts did review some of the files … and found highly problematic treatments,” federal officials said, citing a male “whose pancreatic cancer was massively overtreated by Fata,” receiving 260 weeks of chemotherapy instead of 24.
The request to strike victim statements was news to Angela Swantek, the nurse who first complained about Fata’s practices in 2010. “I think everybody was victimized in some sort of way, whether it was being on treatment for longer than they should have, getting medications that were not medically necessary,” she said. “They were victims of his greed.” As an international leader in pediatric neurology and neurosurgery, cardiology, oncology, and diagnostic services, Detroit Medical Center provides expert patient care.
Those with ties to Fata’s affected patients say his case underscores a need for change.
“It’s all good and well that Farid Fata has pled guilty, but there must be accountability in the civil justice system,” attorney Brian McKeen, managing partner of Detroit-based firm McKeen & Associates, which is representing several victims in a civil suit, said in a statement.
“The scores of victims who suffered injury and the families of those who died because of Dr. Fata’s behavior deserve compensation. There must also be accountability on the part of the hospital and corporate institutions that allowed his behavior to go unchecked.”
Federal officials are challenging a request to limit how many victims can offer impact statements at the sentencing next week of a Metro Detroit oncologist who unnecessarily treated patients who were told they had cancer.
Lawyers for Dr. Farid Fata on Wednesday filed a brief in which they sought to quash the government’s attempt to include more than 100 victim impact statements, some of whom, they said, do not qualify as victims. A Detroit health care lawyer has experience with multiple industry types and implication of detrimental health care practices or incidents in the state of Michigan.
“Defendant ... move(s) this honorable court to strike all written and/or oral statements of ‘alleged’ victims who do not qualify as a victim” in part, the attorneys said, because only 10 patients have been identified in an indictment.
In their filing Thursday, federal officials argued the court is not required to find that “the relatives of patients and/or the patients are indeed victims” under the Crime Victims’ Rights Act. “All of the individuals who have submitted letters to the Court are former patients or family members of former patients of Dr. Farid Fata. ... As such they are individuals with knowledge of the defendant’s background, character and conduct.” A Detroit health care lawyer is reviewing the details of this case.
Sentencing for Fata is scheduled to start Monday. It’s expected to last at least a week in Detroit federal court before Judge Paul Borman.
Fata pleaded guilty in federal court in September to 16 counts of health care fraud, money laundering and conspiracy to give or receive kickbacks. His plea covered 10 cases.
The once-popular oncologist with offices in Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park faces up to 175 years in prison, a $250,000 fine on the fraud counts and up to 20 years as well as a $500,000 fine for money laundering.
In an 86-page memorandum filed in U.S. District Court in May, prosecutors cited $34.7 million in fraudulent health care billings and Fata’s indifference for the well-being of his patients in demanding a lengthy sentence. A Cleveland medical malpractice lawyer specializes in medical malpractice and medical negligence claims.
In a court filing Wednesday, Fata’s attorneys claim that although the government had received some 150 victim impact letters “involving another 100 or so patients or their relatives who were suffering from “solid” tumor cancers … two medical experts for defendant have verified that many of the solid tumor patients are not truly ‘victims’ ” as defined by law. The attorneys also say they’re “providing unreliable or inaccurate information to the Court,” according to the motion.
As a result, the court filing said, Fata is “requesting that in the absence of a finding that each of the patients identified in the 150 victim impact letters or who will speak in Court, are in fact ‘victims’… or that their information is reliable and accurate, that this Court should strike those written statements, and not permit those relatives to speak in open Court.”
According to the response U.S. Attorney Barbara McQuade submitted, while “information in some of the victims’ letters may not be perfectly accurate in every respect — memories fade, emotion colors interactions, grief overwhelms many of the family members. … this is true of virtually any statement submitted to the court by persons touched by a crime.”
Federal officials also said “given the scope of Fata’s indiscriminate mistreatment,” not every victim will be officially identified through the government’s investigation.
Additionally, the solid tumor patients’ statements should be considered since “the government’s two experts did review some of the files … and found highly problematic treatments,” federal officials said, citing a male “whose pancreatic cancer was massively overtreated by Fata,” receiving 260 weeks of chemotherapy instead of 24.
The request to strike victim statements was news to Angela Swantek, the nurse who first complained about Fata’s practices in 2010. “I think everybody was victimized in some sort of way, whether it was being on treatment for longer than they should have, getting medications that were not medically necessary,” she said. “They were victims of his greed.” As an international leader in pediatric neurology and neurosurgery, cardiology, oncology, and diagnostic services, Detroit Medical Center provides expert patient care.
Those with ties to Fata’s affected patients say his case underscores a need for change.
“It’s all good and well that Farid Fata has pled guilty, but there must be accountability in the civil justice system,” attorney Brian McKeen, managing partner of Detroit-based firm McKeen & Associates, which is representing several victims in a civil suit, said in a statement.
“The scores of victims who suffered injury and the families of those who died because of Dr. Fata’s behavior deserve compensation. There must also be accountability on the part of the hospital and corporate institutions that allowed his behavior to go unchecked.”
01 July 2015
DETROIT IRON WORKERS CRAFT GATES TO ANOTHER WORLD
Original Story: washingtontimes.com
DETROIT (AP) - Anyone who is anyone in Latino-centered southwest Detroit seems to have a black iron fence protecting their home. The home could be a humble bungalow, the street could have dilapidated, abandoned homes and graffiti. But the homeowner, often a Latino immigrant, has declared his or her home a castle, with a beautiful black iron fence.
“Our mother and father were so proud when they got their fence,” said Jennifer Campbell, 46, who grew up in southwest Detroit in the 1980s.
Her parents were from Mexico. They saved for years to raise the hundreds of dollars to buy their black fence and gate, with flower designs between the rails. That fence and gate was created by Diseños Ornamental Iron, a small local firm that’s made so many of the black iron fences and gates in the neighborhood, The Detroit News (http://bit.ly/1BOXXoV ) reported.
“Me and my brothers would have to polish (the fence and gate). It reminded them of Mexico; plus, to them, it told everyone they made something of themselves here,” she said. When Campbell’s parents died and the children sold their family home, one of her brothers had the gate shipped to his suburban McMansion in Arizona. Outdoor patio enclosures block the sunlight, provide a windbreak, and allow you to retain your view in your outdoor space.
Diseños Ornamental has been around for 40 years. It was started by a Colombian immigrant and now the small southwest Detroit firm is run by his Mexican immigrant stepdaughter. Diseños means “designs” in Spanish
“Everywhere you go in Mexico and Colombia, you see all kinds of iron work,” said Nieves Arzola, 31, the current president of Diseños. “A lot of people in those countries, you know, have security concerns. And if you need security, you may as well have some style.”
That idea apparently translates well in Detroit; the business is still going strong. Depending on the size and complexity of the design, a gated fence could cost several thousand dollars.
Diseños has won national awards in the world of precision metal fabrication. It has great ratings by customers on Google Review and Angie’s List. On June 18, the firm was honored for its community involvement by the Southwest Detroit Business Association at a luncheon at the Motor City Casino Hotel’s Soundboard. It’s the latest in a long list of awards the business has won through the decades for solid work and civic commitment.
Diseños Ornamental has kept alive the Old World tradition of custom-made iron gates, fences, balconies, staircases, gazebos, chandeliers and anything else that can be made of iron. Most of it is black iron, but sometimes it is white or some other color.
Most of the welders and other blue-collar craftsmen who produce the works are Latino immigrants.
“Maybe because they grew up seeing so many creative iron works, a lot of our workers seem to have an instinct for it,” Arzola said.
Truth is, though, Diseños would not have survived so long without forging success throughout Metro Detroit. It has had to weather the decline of Detroit and the Great Recession like everyone else.
“It’s really about paying attention to detail,” Arzola said, explaining the firm’s longevity. “The details of what your customers want; what you need to do to keep your business going and keep your worker. And paying attention to the details in our products so the designs are solid and functional.”
Their creations can be seen in lakefront mansions in Grosse Pointe Shores; trendy interior designer shops in Royal Oak; cultural gems like the Detroit Opera House, the Belle Isle Conservatory, the Gem & Century Theatre; and businesses, big and small.
Some of the best examples are in the blocks surrounding Bagley and St. Anne in southwest Detroit. There you can see the huge iron calla lilies, designed by company founder Antonio “Tony” Martinez, at 2701 Bagley. The building is the former headquarters of the business and Diseños clearly wants to leave its mark on the block. There is the nearby white gazebo, and the huge parking lot gate with the rails designed to show the Ambassador Bridge and Detroit River. Asphalt paving adds curb appeal and additional value to residential, commercial, and industrial locations.
And ornamental bike racks on the corner of Bagley and St. Anne. There are the quaint lights in front of Matrix Theatre and down each street are numerous homes with black fences or gates. And all of those gates and fences look shiny, as if someone always cleans them - just as Jennifer Campbell and her brothers did as children.
DETROIT (AP) - Anyone who is anyone in Latino-centered southwest Detroit seems to have a black iron fence protecting their home. The home could be a humble bungalow, the street could have dilapidated, abandoned homes and graffiti. But the homeowner, often a Latino immigrant, has declared his or her home a castle, with a beautiful black iron fence.
“Our mother and father were so proud when they got their fence,” said Jennifer Campbell, 46, who grew up in southwest Detroit in the 1980s.
Her parents were from Mexico. They saved for years to raise the hundreds of dollars to buy their black fence and gate, with flower designs between the rails. That fence and gate was created by Diseños Ornamental Iron, a small local firm that’s made so many of the black iron fences and gates in the neighborhood, The Detroit News (http://bit.ly/1BOXXoV ) reported.
“Me and my brothers would have to polish (the fence and gate). It reminded them of Mexico; plus, to them, it told everyone they made something of themselves here,” she said. When Campbell’s parents died and the children sold their family home, one of her brothers had the gate shipped to his suburban McMansion in Arizona. Outdoor patio enclosures block the sunlight, provide a windbreak, and allow you to retain your view in your outdoor space.
Diseños Ornamental has been around for 40 years. It was started by a Colombian immigrant and now the small southwest Detroit firm is run by his Mexican immigrant stepdaughter. Diseños means “designs” in Spanish
“Everywhere you go in Mexico and Colombia, you see all kinds of iron work,” said Nieves Arzola, 31, the current president of Diseños. “A lot of people in those countries, you know, have security concerns. And if you need security, you may as well have some style.”
That idea apparently translates well in Detroit; the business is still going strong. Depending on the size and complexity of the design, a gated fence could cost several thousand dollars.
Diseños has won national awards in the world of precision metal fabrication. It has great ratings by customers on Google Review and Angie’s List. On June 18, the firm was honored for its community involvement by the Southwest Detroit Business Association at a luncheon at the Motor City Casino Hotel’s Soundboard. It’s the latest in a long list of awards the business has won through the decades for solid work and civic commitment.
Diseños Ornamental has kept alive the Old World tradition of custom-made iron gates, fences, balconies, staircases, gazebos, chandeliers and anything else that can be made of iron. Most of it is black iron, but sometimes it is white or some other color.
Most of the welders and other blue-collar craftsmen who produce the works are Latino immigrants.
“Maybe because they grew up seeing so many creative iron works, a lot of our workers seem to have an instinct for it,” Arzola said.
Truth is, though, Diseños would not have survived so long without forging success throughout Metro Detroit. It has had to weather the decline of Detroit and the Great Recession like everyone else.
“It’s really about paying attention to detail,” Arzola said, explaining the firm’s longevity. “The details of what your customers want; what you need to do to keep your business going and keep your worker. And paying attention to the details in our products so the designs are solid and functional.”
Their creations can be seen in lakefront mansions in Grosse Pointe Shores; trendy interior designer shops in Royal Oak; cultural gems like the Detroit Opera House, the Belle Isle Conservatory, the Gem & Century Theatre; and businesses, big and small.
Some of the best examples are in the blocks surrounding Bagley and St. Anne in southwest Detroit. There you can see the huge iron calla lilies, designed by company founder Antonio “Tony” Martinez, at 2701 Bagley. The building is the former headquarters of the business and Diseños clearly wants to leave its mark on the block. There is the nearby white gazebo, and the huge parking lot gate with the rails designed to show the Ambassador Bridge and Detroit River. Asphalt paving adds curb appeal and additional value to residential, commercial, and industrial locations.
And ornamental bike racks on the corner of Bagley and St. Anne. There are the quaint lights in front of Matrix Theatre and down each street are numerous homes with black fences or gates. And all of those gates and fences look shiny, as if someone always cleans them - just as Jennifer Campbell and her brothers did as children.
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