Michigan wrangles with school debts

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.

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