Preliminary Review Summary

OSRFA conducts preliminary reviews for districts and public school academies that incur a deficit projecting to last five years or more. Districts and PSAs with manageable and improving financial stress are subject to the Enhanced Deficit Elimination Plan process in lieu of the financial emergency options provided for in MCL 141.1541 - 141.1575.

Districts or PSAs that are determined to be in a financial emergency may choose one of four options:

  • Consent Agreement
  • Emergency Manager
  • Neutral Evaluation
  • Chapter 9 Bankruptcy

MCL 141.1544 lists all reasons a school district or PSA may be subject to a preliminary review.

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