State to take financial control of DPS

DETROIT - An emergency manager will take financial control of Detroit Public Schools following the district's failure to meet the terms of an agreement outlining how it will resolve a $400 million deficit, the Detroit Free Press reported.

The district has 10 days to appeal the decision by State Superintendent of Public Instruction Mike Flanagan, who found that budget documents DPS officials submitted to the state were inaccurate and incomplete, according to the Free Press. The district also failed to provide the state, as required by the consent agreement, a resolution giving Superintendent Connie Calloway the authority to implement a deficit reduction plan without further involvement by the school board, the Free Press reported.

"The schoolchildren of Detroit are being deeply affected academically by the chronic inability of the district to manage its finances," Flanagan said.

Calloway said in a statement, "We will discuss this matter with the Detroit Board of Education and determine the appropriate next steps," the Free Press reported. Board President Carla Scott said that there was no intent not to meet the terms of the agreement.

Flanagan said the Detroit board will continue to control educational matters, but that the emergency manager will be in charge of the budget and financial systems, according to the Free Press.

The Detroit Free Press, "State to take over Detroit Public Schools' finances," Dec. 8, 2008

Michigan Education Digest, "DPS: Agreement in lieu of takeover," Nov. 3, 2008