© 2024 Michigan State University Board of Trustees
Public Media from Michigan State University
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

State Board Helps Detroit Schools Avoid Default


A state board has agreed to let the Detroit Public Schools re-finance part of its debt as part of a plan to manage a fiscal crisis.

We have more from The Michigan Public Radio Network’s Rick Pluta.

Without the approval, the 47,000 student district would default on its obligations by early June.

State-appointed emergency manager Darnell Earley says re-financing debt simply buys the district time. 

“And so it gives us the security, if you will, of knowing that we’ll be able to make our payments on our bills,” he says.

Earley says he hopes the Legislature will use the additional time to adopt Governor Rick Snyder’s plan to re-structure the district. Many state lawmakers are skeptical, in part because it calls for the district to get an extra $70 million from the state School Aid Fund.

Rick Pluta is Senior Capitol Correspondent for the Michigan Public Radio Network. He has been covering Michigan’s Capitol, government, and politics since 1987. His journalism background includes stints with UPI, The Elizabeth (NJ) Daily Journal, The (Pontiac, MI) Oakland Press, and WJR. He is also a lifelong public radio listener.
Journalism at this station is made possible by donors who value local reporting. Donate today to keep stories like this one coming. It is thanks to your generosity that we can keep this content free and accessible for everyone. Thanks!