Michigan Finance Authority revenue notes rates SP-1 -S&P

LSU Finance professor’s hybrid vehicle study published

The schools’ management said it ended fiscal 2013 with a $6 million deficit but expects to report a surplus of approximately $6 million in 2014 due to school closures and possible midyear budget cuts, S&P said. “The rating reflects a pledge of all state aid to be appropriated by the state of Michigan to the Detroit Public Schools starting with fiscal 2014,” the rating company said. The Detroit Public Schools enrollment could fall by as much as 33 percent, and state aid will be sufficient to cover debt service, according to S&P.

With gas prices steadily climbing, many consumers consider the advantages to driving hybrid vehicle, Chance stated. He added, however, that the fuel economy is only financially beneficial to a minute class of drivers, including taxis, delivery services and other commercial vehicles. Even high mileage consumers such as commuters, however, would rarely benefit, because they typically spend more of their time on the highway, in which case the combustion engine does most of the work, Chance said. Thus, the only high mileage situations that can be justified are businesses that put in most of their miles in cities. Additionally, the authors found that the financial advantage of large SUVs, even at low gas prices and average mileage use, is not due to energy savings but to the relatively smaller markups on the hybrid versions of those vehicles.

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