News in Brief
Detroit School District Reports Budget Surplus
After three years and two financial overseers, the Detroit school district achieved its first budget surplus in four years and used it to help reduce a $327 million budget deficit.
The apparent turnaround—achieved while cutting hundreds of teaching jobs and closing dozens of buildings—has set up the district as a possible success story behind Michigan's turn to emergency managers to rescue fiscally struggling schools and municipalities.
The Detroit schools' budget surplus of $43 million at the end of June was made possible, in part, by $98 million in spending cuts, $200 million in debt refinancing, and $54 million in additional federal revenues. The district's deficit now is projected at $84 million.
Every teacher was laid off over the summer. Callbacks were made depending on enrollment. Last year, the district had about 4,500 teachers. The 73,000-student district now has around 4,100 teachers.
Vol. 31, Issue 14, Page 4Published in Print: December 14, 2011, as Detroit School District Reports Budget Surplus