Governor Declares A Fiscal Emergency In Pontiac Schools

Aug 6, 2013

Governor Rick Snyder has agreed with a review team’s finding that the Pontiac school district is in a state of financial emergency.

As we hear from The Michigan Public Radio Network’s Rick Pluta, the school board still has time to ask the governor to reconsider.

The Pontiac school board can decide to appeal the decision. If it decides to go ahead with an appeal, that hearing will take place next week. But Pontiac’s numbers are pretty grim – an almost $38 million deficit. The size of the shortfall has quadrupled since 2009, and grown by more than 50 percent in the past. It’s missed paying some critical bills. The teachers union took the district to court for failing to pay employee health insurance premiums.

If the governor sticks by his decision, the district gets to choose whether to negotiate a deficit-elimination plan, ask the governor for permission to file for bankruptcy, or request a state-appointed emergency manager.