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America Inspired

Will Detroit Public Schools declare bankruptcy?

Potential bankruptcy, continuing budget problems, more staff cuts, and allegations of theft at Detroit Public Schools all were reported by Detroit media during the past week, according to the Education Report.  

Meanwhile, the district's teachers union announced an investigation into potential embezzlement in its own operations.
 
Robert Bobb, DPS emergency financial manager, announced Monday that the district's budget calls for spending $259 million more than it has in revenue.
 
He will have to cut about 2,500 employees rather than the 1,800 announced earlier, and he is considering filing bankruptcy, according to the Detroit Free Press in Bankruptcy may be next for Detroit schools. 
 
To avoid continued overspending next year, labor unions would have to agree to larger class sizes and $137 million in concessions, potentially including unpaid furloughs and health care benefit cuts, the Free Press reported.
 
In other news, six DPS employees were suspended and face possible legal charges for allegedly stealing money or computers or for alleged abuse of students, according to the Detroit Free Press article. See Six DPS Employees Suspended.
 
Finally, the Detroit Federation of Teachers President Keith Johnson announced a forensic audit of union finances in a case involving alleged embezzlement of tens of thousands of dollars.
 
He told The Detroit News that he and another employee noticed financial irregularities about two months ago.
 
Last year The News reported that the union was behind by $1.5 million on dues owed to its state and national affiliates, among other financial difficulties. See Detroit Teachers’ Union Investigates Embezzlement.
 
For more information, see:
 
 
 
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, Education Examiner

Journalist Donna Gundle-Krieg has a passion for improving education. She homeschooled her children, and taught and counseled high school students. She has published educational articles and studies for many clients. See Blitzkrieg Publishing for more information.

Comments

  • Sarah 2 years ago

    Bob Bobb is on the right track. BLOW UP THE WHOLE DISTRICT. TAKE THE BILLIONAIRE UP ON HIS OFFER TO BUILD QUALITY CHARTER SCHOOLS EVEN IF HE IS A WHITE BOY AND YOU DON'T LIKE THAT. GIVE KIDS CHOICES!

  • Bobb Rocks 2 years ago

    Why it took the state so long to take over is beyond me. The cries of racism when the state did take over were a joke. We are all paying for this mess of a city and the children in particular are suffering for the refusal of the adults to take charge.

  • Karin--charter schools examiner 2 years ago

    Donna,

    Just linked this page from todays charter examiner article.
    What is so sad is that there are kids involved. This generation of students will be let lose with an education that is a disservice. It isn't the kids who are failing, it is us (our schools) that are failing to serve our kids. It breaks my heart.
    I am so pleased to see leaders in Detroit have the guts to stand up to make a change. Too bad it had to come to this.

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