DETROIT - The Detroit school board will meet Wednesday to decide whether to agree to budget-cutting measures suggested by a state review team. The alternative is a financial takeover by the state, according to The Detroit News.

Board President Carla Scott said Friday that she believes the board will approve the consent agreement, saying the district wants to work cooperatively with the state, The News reported.

The agreement would require Detroit Public Schools to put together a deficit elimination plan with specific timelines for reducing positions and wages as well as reductions in travel, utility costs, overtime, purchasing and other expenditures, in view of a projected budget that puts spending $408 million over revenue, according to The News.

If the district rejects the agreement, challenges its validity in court or fails to comply with its terms, an emergency financial manager must be appointed to take charge of the district's finances, according to the Michigan Department of Treasury, The News reported.

SOURCE:
The Detroit News, "Consent agreement may help DPS avert financial takeover," Oct. 31, 2008

FURTHER READING:
Michigan Education Digest, "DPS overspending pegged at $408 million for 2009," June 27, 2008

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