Debt Rising in Detroit Public Schools

With the state of Detroit Public Schools (DPS) today, it will take the state over ten years and $715 million, plus a new governance structure, to remove public education in Detroit from the debt it has piled up, according to Governor Rick Snyder. In response, the Governor has unveiled a revised plan to his April proposal regarding Detroit Public Schools.

Two key differences in this proposal are a voluntary common enrollment system for charter and traditional public schools, and bigger finance from the Legislature. DPS debt is currently at $515 million, with additionally $100 million for investments and working capital to take over running DPS classrooms, and $100 million to cover operating losses once the 2016-17 fiscal year begins. The total $715 million debt would stay with the old district under Snyder’s plan and the 18-mill tax on all property outside principle district residents would go toward paying the debt. The millage raises $70 million a year. The 18 mills go to the School Aid Fund, which creates a problem because the state would have to make up those funds.

A Detroit Education Commission will also be established to hire a chief education officer. The officer would operate the common enrollment system encompassing DPS schools, charter schools, and the Educational Achievement Authority schools. The chief education officer also has the authority to close any schools due to low performance. A new school board will be initially created by Governor Snyder and the mayor, but eventually be fully elected by voters in 2021. The city’s Financial Review Commission will oversee the district’s finances until the debt is repaid.

The American Federation of Teachers-Michigan felt this plan has too much state control. There were equally mixed feelings among the charter school groups as well.

The proposal is expected to be sent to the Senate K-12, School Aid and Education Appropriations Subcommittee sometime next week. There are mixed opinions from the Legislators, but Chairman Senator Goeff Hansen (R-Hart) looks forward to reviewing the material. The Governor hopes this plan will pass before the end of the year, allowing Detroit Public Schools to see its effect in July.

posted by PAA Online , Friday, October 23, 2015 10:46 AM
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