FSU implements FAST program to promote financial literacy

BY ANTHONY RIZZO

One of the stresses a typical college student faces is money.

Earlier this year, a study from the Institute of College Access and Success showed that Ferris State University averaged the highest student debt load among public universities in Michigan.

Now, Ferris is launching a new initiative to educate students about financial literacy.

This fall, FSU launched FAST, which stands for the Financial Awareness Student Team.

Sara Dew, Director of Financial Aid at FSU, said it’s a student-to-student initiative, designed to emphasize the importance of making financially sound decisions.

“What we want to do is use these students for outreach on campus,” Dew said. “We want to actually learn from them on how we can get this important message out about: budgeting your money, borrowing money and how decisions you make now affect you in the future, and just trying to take a few moments to have students stop and think about the decisions they’re making.”

Dew said they are starting off the program by hiring two students.

FSU will train the students this semester to begin presenting to prospective and current students in January.

Federal shutdown forces state to take steps toward public worker layoffs

BY JAKE NEHER
Michigan Public Radio Network

With the federal shutdown in its third week, the state is taking its first step toward laying off thousands of public employees.

Michigan budget officials are asking state departments to determine which programs need to be shut down if federal funding isn’t restored before November.

“We really didn’t think we would be at this point,” said Kurt Weiss, a spokesperson for the state budget office. “And neither did the rest of the states. They’re all in the same boat we are, across the country, which is putting together contingency plans to start shutting programs down, which is certainly not something that I would call commonplace.”

Weiss estimates 15,000 to 20,000 state workers would probably be affected.

“We do anticipate a pretty widespread impact across all state agencies that are going to have some employees that are either partially or fully federally funded,” said Weiss. “So these contingency plans are going to tell us which of those folks need to stay home come November 1st.”

Weiss said programs and workers that help Michigan’s poorest residents receive a disproportionate amount of federal dollars. He said agencies such as the state Department of Human Services and the Michigan Department of Transportation will be hardest hit if the shutdown lasts much longer.

Copyright 2013, MPRN

Grant announced for grant toward I-69 Corridor

BY ANTHONY RIZZO

The state has received federal funding that will support the creation of an economic development roadmap for the I-69 corridor in Genesee, Lapeer and Shiawassee counties.

The Economic Development Administration’s $70,000 investment will be used to develop a regional recovery strategy and cluster analysis for the corridor.

Janice Karcher is the Vice President of Economic Development at the Flint and Genesee Chamber of Commerce.

She said the plan will help bring together key players to work on a plan to grow the economy along the corridor and benefit the entire region. “The partnership really benefits from this announcements of funds from the EDA in helping us put together a broader reaching and more robust economic development strategy for the corridor,” Karcher said.

Karcher said the state is contemplating funding for more regional planning all over the state.

She also said this reward for the I-69 corridor is indicative of what could be done in other regions in the near future.

 

Clare to receive grant for new industrial park

BY ANTHONY RIZZO

The City of Clare is set to receive a federal grant to develop a new industrial park. The hope is that it will lead to the creation of new, high-paying jobs.

The competitive grant of over $2.5-million is expected to cover roughly half of the project.

Officials said the grant is a critical investment to help grow the economy and make Clare a better place to expand business.

Ken Hibl is the City Manager of Clare.

He said the grant is not yet a done deal; it’s still preliminary.

“We do have a number of steps to go through the process. Formal notification will be the first of those and the secondarily, and most importantly, is that we have to demonstrate to the city commission that we can afford the local match and how we’re going to fund the money that we need to provide to make this happen,” Hibl said.

Hibl said he is optimistic to gather the remaining funds to complete the project.

He said he expects to fund the rest of the project through the city’s water and sewer funds and other loans and bonds.

Niche businesses doing well in Michigan

BY MARCY MISNER

If niche businesses rely on a large population center and active buy-in from a customer base, then surely those in Northern Michigan must be one step behind. With smaller towns meaning fewer people to visit any specialized store, tourism can give a boost in the summer months. to small town shops.

But that doesn’t mean success is hard to achieve, even in small towns. Just look at a Traverse City-based businessman who’s providing an up-and-coming U.S. appetite for high quality olive oils and vinegars, and a Cedarville-based wooden boatbuilding school that’s riding a swelling wave of success.

People raised eyebrows in 2008 when Jim Milligan opened Fustini’s. The business sells just two things: flavored vinegars and flavored olive oils.

In the past five-years, Milligan has opened 5 stores, with two more planned in Maui.

Joan Perez from Kent County was in the Mackinaw City store recently.

“I wanted to get a really good balsamic vinegar and I thought I’d give it a shot. And I found it. My husband’s going to be thrilled. I’m Italian and we make a lot of salads. I live on salads and this is going to be with tomatoes, I’m just excited,” Perez said.

With the economy struggling to find its feet, it may seem like a hard time for niche businesses, but that may be the very thing working in their favor. While specialty shops don’t have a huge customer base, those consumers are loyal. and even when budgets are tight, and people may forgo expensive vacations, they still making room in their budgets for some of the things they love.
Of course, niche businesses can also get a leg up by tapping into a cultural trend, and perhaps no ‘trend ‘ is as strong right now as health and wellness. Health-conscious consumers, like our shopper Joan, seem to love the the pure olive oils and natural balsamic vinegars that Fustini’s carries

“I plan on making it to 95. I think you could live as long as you want if you eat correctly and exercise every day. I absolutely believe that. So I have a goal to do that,” Perez said.

So, it seems some niche businesses succeed by making their customers healthier and happier. For others, success comes from making their communities healthier.

This group of entrepreneurs wanted success for their town of Cedarville, and used that as their launching-off point for The Great Lakes Boatbuilding School. It is one of just 5 major boatbuilding schools around the US, and the only inland school on the Great Lakes.

“It was founded in 2006,” McIntire said.

That’s Bud McIntire, a 2011 graduate and now director of student services for the school.

“That’s when a group of local citizens, both permanent residents and a number of people that are summer visitors and have been for over 100 years, their families, got together and decided they wanted to start a new enterprise. In the beginning it wasn’t necessarily a boatbuilding school, they just thought that they would like to do something to sort of jumpstart the economy. To build a new enterprise because nothing had been built here in quite a while,” McIntire said.

During a tour of the facility McIntire told me that a nucleus of residents wanted a year-round business that reflected the area’s culture and that locals would rally behind. The community goals came first.

“The more they thought about it, there was such a heritage of wooden boatbuilding in this immediate area, I mean there were wooden boat shops all over this area that they decided that would be a great tie-in. It’s a worthwhile enterprise, it matches up with the heritage of the area. There are jobs available when you graduate, so all of those things made sense,” McIntire said.

A boatbuilding school isn’t going to bring in a lot of foot traffic like a retail store, but it will bring in educated men and women, some of whom will stay in the area. The school and its students spend money in the community. Cedarville is seeing the financial benefit of the school and the cultural benefit is also gaining ground.

Boat shops across the nation are depending on craftsmen who are in their 60s and 70s. There aren’t enough young skilled workers to take their place.

McIntire said this school is working with boat shops to fill that deficit.

We’re also filling in as the older craftsmen retire, so we’re maintaining a tradition that’s been in place for well over a hundred years in the Great Lakes area.

The boatbuilding school is continuing to anchor itself in the community and in the culture of boatbuilding with an increasing number of graduates and new collaborations with master boatbuilders downstate.

In the meantime, Forty five minutes to the west, Fustini’s is finding that adding flavor to the community has proved to be its recipe for success.

Even small businesses can survive in small towns.

From boats to vinegar, both ideas show how handpicking the untapped desires of an area can make for successful endings.

Report: Michigan workers have less spending power now than 30 years ago

BY JAKE NEHER
Michigan Public Radio Network

A new report shows some troubling trends for wages in Michigan.

The study shows most workers in the state have less spending power now than they did three decades ago.

When adjusted for inflation, the median wage in Michigan is seven percent lower than in 1982. That’s according to the report from the left-leaning Michigan League for Public Policy.

Spokesperson Judy Putnam said an increasing amount of people have had a tough time earning enough to support their families.

“We have a growing share of what we call ‘poverty wage;’ you can work full time, but you can’t get your family out of poverty,” Putnam said.

The report also shows that while white workers saw their spending power drop one percent over three decades, African American workers suffered a 24-percent decrease during the same time.

The Michigan League for Public Policy said better access to post-secondary education and a higher state minimum wage would help address the issue.

Copyright 2013, MPRN

Study: Investing in education attracts businesses

BY ROB SOUTH

Michigan’s economy would be stronger with more investment in education, according to a recent study.

Gilda Jacobs is president of the Michigan League for Public Policy, and said rebuilding Michigan’s economy following the implosion of the manufacturing sector will require more skilled and educated employees.

“Even the new manufacturing jobs require a much greater skill set and require people to go to college or to have post college degrees, just in the manufacturing part of this. Let alone other types of businesses we want to attract,” Jacobs said.

Jacobs said investing more in education would have a greater impact on growing the economy than economic policies which cut taxes to attract businesses.

The EPI study also points out that higher paid employees also pay high taxes and would be good for state budgets.

Detroit’s bankruptcy affects the sale of local municipal bonds

BY JENNIFER WEINGART
In the wake of Detroit’s bankruptcy filing last month, other Michigan communities are having difficulty escaping the shadow cast by the state’s largest city.
Saginaw and Genesee Counties have both recently postponed putting their municipal bonds on the market, a large portion of how both counties fund their operations.  
Now investors are being cautious about the Michigan municipal bonds, fearing other places might go the same way as Detroit.
Charles Walmsley, a Certified financial planner in Mt.Pleasant, said the full impact of Detroit’s bankruptcy is not clear.
“When we see a major city that attempts to go into bankruptcy and defaults on their debt, that will make investors be very very careful about investing in new issue and existing municipal debt, so that absolutely will have an impact, what impact that will have, we’ll have to wait and see,” Walmsley said.
According to the Wall Street Journal, the City of Battle Creek and Macomb County are also reviewing their municipal bond offerings.
For the purpose of full disclosure we note that Charles Walmsley is an underwriter of CMU Public Radio.

Michigan gas prices match national average

BY JENNIFER WEINGART
As the summer travel season pushes into its final month, Michigan motorists may have one more reason to hit the road.
Gas prices have fallen over the last week in Michigan, bringing Michigan’s average price in line with the national average.
Nancy Cain with AAA Michigan said gas prices could have an effect on travel numbers, but they may not.
“It could have an effect, pushing more people last minute to thinking about taking a trip. Certainly would help people who are thinking about going but we did a survey at the beginning of the summer and people told us they would still travel even when prices went up,” Cain
Travel numbers for this summer have, so far, been about the same as they were last year, Cain said, but the summer still has one good month of travel left before we hit fall.
Michigan’s gas price average, and that of the nation, is at $3.63 per gallon. This is the first time Michigan has matched the national average since early this year.

State approves incentives for arena project in Detroit

BY RICK PLUTA
Michigan Public Radio Network
While the first bankruptcy hearing for Detroit was underway, state economic development officials approved big incentives for developers to build a new sports complex in the city. The project includes a new hockey arena for the Detroit Red Wings. It would be within walking distance of the city’s football and baseball stadiums.  
Michael Finney is the president of the Michigan Economic Development Corporation.
“Our job is to find every opportunity that we think will allow for more and better jobs and a future for our kids in this state, and this is one of those projects and it has every potential for a positive impact in Detroit,” Finney said.
The city’s downtown development authority would capture a share of local property taxes to help with public financing for the project. 
Copyright 2013, MPRN