Detroit Schools might have to repay $1.3 million to feds

DETROIT - A report from the U.S. Department of Education recommends that Detroit Public Schools be required to pay back at least $1.3 million in misused funds, according to the Detroit Free Press.

The report from the Office of the Inspector General found that from 2004-2006 the district did not properly report its spending of federal funds aimed at helping low-income students. DPS may also be required to pay up to $52 million more if it is not able to track down additional records, the Free Press reported.

District and state Department of Education officials claim that DPS does not owe anything. Department of Education spokeswoman Jan Ellis said many of the records have been found.

"We hope to be able to resolve almost all of it," Ellis told the Free Press.

Detroit Free Press, "U.S. report says DPS must repay $1.3 million," July 23, 2008

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