Governor Rick Snyder has signed a 617 (m) million dollar bailout of the Detroit Public Schools.
The plan creates a new debt-free Detroit school district. It will focus on educating the district’s 46 thousand students while the old district pays down the old debt.
The bills signed by the governor also return control of the district to a locally elected school board following seven years of state control.
“So I think we’re on a positive path and I look forward to hopefully what that process happen.”
Critics say the Republican plan isn’t up to the task, and only delays the need for another rescue package or the collapse of the district.
The bills were adopted by the Legislature with no support from Democrats, Detroit lawmakers, or the city’s mayor.
The state Senate could vote this week on a Detroit Public Schools bailout plan, even though it’s a departure from the bipartisan compromise already adopted by the chamber.
The state Senate has approved a plan for a financial bailout of the Detroit school system.
The bills would return control of the district to an elected school board, help pay off a crushing debt burden, and give an appointed board the power to close low-performing schools – including charter academies.
Michigan’s top education official says the state should help Detroit Public Schools (DPS) pay down its massive debt.
There could be a first vote tomorrow (Wed.) in the Legislature on an almost 200 (m) million dollar bailout for the city of Detroit. Mayor Mike Duggan was one of those who testified prior to the historic vote. Duggan says, overall, he supports the plan.
Governor Rick Snyder says he thinks there’s progress in negotiations with the Legislature to put 350 million dollars of state money toward Detroit’s bankruptcy settlement. Detroit’s emergency manager just spent two days in Lansing in an effort to build support for the deal.
That money from the state would help fund pensions and ensure the assets of the Detroit Institute of Arts don’t get put up or auction.
The governor says now he’s pushing for lawmakers to vote on a bailout package in May or early June.
“The goal is to get it done before there’s a recess for the summer.”
Snyder says the bargain has to include an end to legal challenges to the bankruptcy. He would also like an oversight panel to help manage the city’s finances post-bankruptcy. He says that should also help reassure reluctant legislators.