Detroit’s debt-ridden school district would receive a $617 million state bailout under a compromise restructuring plan that appears poised for final legislative votes and the governor’s signature after winning narrow approval in the House.
The ailing district has been managed by the state for seven years, during which it has grappled with plummeting enrollment and, more recently, teacher sick-out protests.
The new debt-free district would educate students and qualify for $150 million in transition costs to help it stay afloat over the summer, including $25 million to upgrade buildings that have been a source of teacher complaints. The old district would exist solely to collect taxes, retiring $467 million in debt.
A school board would be given control again while a commission of state appointees would have financial oversight of the new district.
The Senate could vote as early as this week. Without further action, emergency aid will run out by June 30.
A version of this article appeared in the June 08, 2016 edition of Education Week as Michigan Poised to Pass $617M Bailout for Detroit