The city of Detroit shed about $7 billion of its $18 billion of debt and obligations when it exited the biggest-ever US municipal bankruptcy last December, but the city’s school district has been unable to shake off a state-declared financial emergency dating back to 2008.
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The new district’s board initially would governed by gubernatorial and mayoral appointees, transitioning to a fully elected board in 2021.
Gov. Rick Snyder said this morning his plan to overhaul education in Detroit could cost the state up to $715 million over 10 years as officials seek to stabilize enrollment, improve academic achievement and eliminate Detroit Public Schools’ massive debt.
“It’s time to act”, the governor said at the time. “In math and science, 94 to 95 percent are not proficient, and in reading, two-thirds are not proficient”.
Similar to the GM bankruptcy, there would essentially be an “old” Detroit Public Schools district and a new district.
The governor’s proposal- parts of which were released earlier this year – involves splitting DPS into two entities and implementing a voluntary common enrollment system for schools across the city.
The governor said in April he hoped to get legislation moving soon but added, “from a practical matter, it probably won’t be done until fall”.
Snyder outlined a plan in April that called for the creation of a new Detroit Education District to oversee traditional and charter schools. Snyder says DPS is expected to have $515 million in operating debt by June 2016. The tax generates about $72 million annually, while the district faces debt service payments of $53 million each year, diverting $1,100 per student away from classroom instruction, according to the Citizens Research Council of Michigan. The old DPS would exist only tocollect taxes and pay down debt.
“The governor’s plan as proposed can be a very important step to bring a few order to the chaos of education in Detroit”, State Board of Education President John Austin said in a statement.
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Driving academic achievement and increasing access to quality schools by allowing the chief education officer to, with community input, hold low-performing schools accountable and reward and increase the number of high-performing schools.
