Detroit Public Schools will see a
lion’s share of the School Aid budget for fiscal year 2017. DPS will see a
total of $720 million to cover its outstanding costs and provide startup money
to divide the district.
Governor Rick Snyder’s current plan
for the district is to create a new district in Detroit to perform existing
operations but leave the debt with the current district. The debt will
partially be paid with current local tax revenue, but will see some additional
funds to cover lost revenue with tobacco settlement funds. The Governor has
recommended $72 million a year in tobacco funds into the School Aid Fund.
House Republicans introduced a package
of bills on Thursday to reach a solution for DPS, which was met with some
criticism. HB 5382-5387 draws out limits to collective bargaining and avoids a
fully-elected school board for eight years in the district. Reforms included
altering the grading system to an A-F and third grade reading initiatives. Senate
Majority Leader Arlan Meekhof (R-West Olive) has not commented on the House’s
plan, but has been supportive of the Senate’s efforts with SB
710 and SB
711.
Currently, there are no similar
reforms placed in the Senate plan, something Speaker Kevin Cotter (R-Mount
Pleasant) said would be necessary for him to hold a vote. Speaker Cotter
commented he has not ruled out bankruptcy as an option for the district.
Senate Majority Floor Leader Mike
Kowall (R-White Lake Township) commented the Senate Government Operations
Committee is unlikely to see quick movement on the plan in the future, but is
hoping to have some progress before Easter break.