Governor Rick Snyder of Michigan
LANSING, Mich. - Gov. Rick Snyder today signed legislation intended to assist financially struggling school districts, including Detroit Public Schools (DPS) as they work toward financial reforms.
"This legislation supports our mission to put Michigan school districts, including DPS, in the best possible position to meet their fiscal challenges, emerge stronger, and ensure students can get the quality education they need and deserve," Snyder said.
The bills allow certain school districts and intermediate schools districts under an emergency manager or deficit elimination plan to use school aid payments to bolster the security of bonds issued by the school district. The legislation requires no additional appropriation or state indebtedness. It simply ensures bondholders will have less risk now and in any future financing and reduces borrowing costs for DPS and other fiscally distressed school districts.
House Bills 5194 and 5195, sponsored by state Rep. Fred Durhal Jr., now are Public Acts 1 and 2 respectively of 2012.
"I appreciate the support of the governor and my legislative colleagues in helping financially troubled school districts, including Detroit Public Schools, in their efforts to reduce (or limit) borrowing costs," Durhal said. "This is an excellent step in ensuring that the ongoing reforms in DPS and other districts can continue. Stronger schools mean brighter futures for our children. That's what it's all about."
Visit www.legislature.mi.gov for more information.