Bankruptcy could be option for ailing DPS

Dec 18, 2015 by

Failure to act on Gov. Rick Snyder’s proposed bills could force calling-in of up $2 billion in DPS debt.

Each month the Legislature fails to act on Gov. Rick Snyder’s proposals for fixing Detroit Public Schools brings the district a step nearer to a Chapter 9 bankruptcy filing, which now even the governor is calling an option.

Snyder and his education team have worked closely with lawmakers since April on a handful of bills to address the district’s imploding debt and its academic shortcomings. They had hoped to get the process started this fall, but the Legislature this week left for the year without introducing the package.

Snyder is offering $715 million over 10 years to create a new Detroit school district. The state would assume $515 million in operating debt, as well as contribute $200 million in start-up costs for the restructured school system.

A debt-fee DPS would seem a great gift to the city.

Source: dps-inching-closer-to-bankruptcy

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