After receiving the report of the 10-member financial review team last week, Michigan Governor Rick Snyder declared the Highland Park School District in a state of financial emergency Thursday. Under Public Act 4, the next step is the appointment of an emergency manager.
PAAdvisory reported last week that a balanced budget had only been achieved for the district in one of the last six years. The budget deficit grew from $6.6 million to $11.3 million from the 2009-2010 to the 2010-2011 fiscal year. Additionally, the review team noted that the District, as of mid-November, had $1.7 million in unpaid bills – some as late as six months delinquent.
The situation was compounded this week when Treasury officials made the trip to Highland Park to determine the exact amount necessary to make payroll for the District this week. $188,000 was determined to be the number and the District will receive their January state aid payment in advance to meet their obligations.
A January 17th meeting is schedule with District officials to discuss next steps. The district is expected to appeal the declaration.