State Approves Deficit Plan for Detroit Public Schools

Contact: Martin Ackley, Director of Public and Governmental Affairs (517) 241-4395
Agency: Education

August 20, 2014

LANSING – State Superintendent Mike Flanagan approved this week the Deficit Elimination Plan (DEP) proposed by Detroit Public Schools in order for the district to continue receiving State School Aid. 

“It’s important that Detroit Public Schools continues to receive sufficient State Aid as the district works through its longer-term financing options,” Flanagan said. “Having an approved Deficit Elimination Plan is a component in that process.”

It is not the role of the Michigan Department of Education, or the State Superintendent, to dictate what a local district proposes in its Deficit Elimination Plan – those decisions are up to the local district. The department must only ensure that the proposed savings are accurate and a viable solution to its deficit. 

In the approval letter from Flanagan, it stipulates that “if the agreements with employees or other strategies included in the approved DEP are not implemented or do not result in the projected savings, the district must immediately reduce expenditures in other areas in order to meet the level of deficit reduction included in the approved DEP.”