State House DPS rescue package would leave district with deficit by August, state report says
An analysis by the Michigan Department of Treasury shows Detroit Public Schools would run out money by August under legislation passed last week by the Michigan House of Representatives.
The analysis shows the House legislation, approved largely along party-lines, would leave the debt-ridden district with a $22 million deficit in August, a figure that would grow to $80 million in September.
Hit hard by years of declining enrollment, DPS is on the verge of running out of cash by July if the state doesn't step in to help. The district has been under state oversight since 2009.
Detroiters largely prefer a bipartisan DPS rescue package approved by the Senate, which Treasury estimates would provide the district with enough funding to meet its needs and end the 2017 school year with a surplus.