Financial troubles
Detroit is not the only school district in financial straits.
Schools in Benton Harbor, Buena Vista Township, Highland Park, Inkster, Muskegon Heights and Pontiac have borrowed nearly $48.5 million from a $50 million emergency loan fund during the past three years to fund their deficit-ridden operations.
A House bill requested by the Treasury Department would double the loan fund to $100 million. The bill passed through a committee last month and awaits action on the House floor when the Legislature returns April 14 after a two-week spring break.
We’re hopeful that there will be some movement shortly,” Treasury spokesman Terry Stanton said.
Last month, the Senate passed a Horn-sponsored bill that would pay off $725,000 in operating debt for the former Buena Vista school district from a fund the Legislature previously created to pay for demolishing buildings in the tiny Saginaw County school district.
The money is needed after voters in Buena Vista Township rejected a renewal of the defunct school district’s 18-mill non-homestead property tax in November, Horn said.