DPS Transition Manager Places Two Week Deadline

Retired bankruptcy Judge and now Detroit Public School transition manager Steven Rhodes said mid-week that the School District will not be able to pay staff after April 8^th and called on the Legislature to pass either a supplemental appropriation or a full solution prior to their departure for Spring Break.

Judge Rhodes told the House Appropriations Committee that the District will not be able to pay its teachers for the pay period beginning after April 8, 2016 and because he would not ask staff to work without pay, the District would not be able to stay open. The Legislature is scheduled to depart on a two-week recess following session on March 24, which leaves two weeks (or 6 scheduled session days) since the Legislature won’t be returning to Lansing for session until April 12.

House Speaker Kevin Cotter (R – Mt. Pleasant) was optimistic that something might be concluded by March 24, whether that is a full solution or enough progress on education reforms to warrant passing additional financial resources.

Mr. Rhodes also explained why bankruptcy is not a viable option for the School District, as the debt that a bankruptcy can resolve is not the type of debt the district has. If not for the $13 million Michigan Public School Employees Retirement System (MPSERS) payment, the District would be operating in a surplus according to Mr. Rhodes.

In related news, Detroit Mayor Mike Duggan testified before the same committee earlier in the week to advocate for a Detroit Education Commission charged with opening and closing both public and charter schools in the city. The Mayor is pushing for a seven-member commission, all appointed by the Mayor, stating that returning to local control of the district as soon as possible is a key component for any future success. His plan would also include electing a school board in August of 2016.

Governor Snyder’s plan for DPS also includes the appointment of a commission; however, with the Governor having the majority of the appointments.

posted by PAA Online , Friday, March 11, 2016 10:28 AM
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