The Local
Emergency Financial Assistance Loan Board approved three resolutions to
transfer assets from the Detroit Public Schools (DPS) to the new Detroit
Community Schools and to allow bonds for some refinancing and start-up funds
for the district.
DPS board members
and members of the community urged the loan board to reject the proposals and
instead, have the state borrow the $235 million and give it to the district
rather than transferring the assets and refinancing existing debt. Among
complaints are the potential of an up to 18 percent interest rate in a bonding
provision. In response, Treasurer and chair of the loan board Nick Khouri said
the interest rate would likely be market for the district at between 2 and 4
percent.
Aside from
Mr. Khouri’s remarks, the board held no discussion before adopting the
resolutions.