Schools. Key features of the Governor’s plan are expected to be creation of an “old” DPS to collect taxes and pay down debt, along with a “new” school system to educate kids. Before the plan has even been announced, however, DPS Board Member Lamar Lemmons has vowed to fight the Governor. GLEP supports any proposal that provides additional quality options for students, empowers parents to make choices, and increases the return on taxpayer investments in education; and we will oppose any proposal that puts limits on school choice, reduces accountability or wastes taxpayer dollars.
Who’s on the hook for $2.2 billion in DPS debt?
On Wednesday the well-respected Citizens Research Council published a report that outlines $2.2 billion in short and long-term debt that has been accumulated by Detroit Public Schools. A quick breakdown of this debt is as follows:
– $1.6 billion in bonded/capital debt (paid with $172 million per year in property taxes);
– $299 million in short term debt converted to long term notes (paid by $53 million per year until 2021);
– $108 million in this year’s short term loan from the state (the district is currently looking to convert this to long-term debt as well); and
– $172 million in operating deficit for the current fiscal year.
The report highlights the fact that DPS has spent more than it receives in 8 of
the last 9 years — which happens to be against the law (for those concerned with such things). The district, on more than one occasion, has converted short term debt to long-term notes, robbing tomorrow’s students to cover the costs of educating yesterday’s students. This reminds us of the Popeye and Wimpy method of financing – “I’ll gladly pay you Tuesday for a hamburger today.” Well, Tuesday is coming for DPS!!
The Coalition to Save DPS has asked the state to take on $124 million per year in payments for the district (the $53 million per year to satisfy past short-term borrowing and $71 million per year for MPSERS, the school employee retirement system.) Among other bills the district has chosen not to pay, it’s worth noting that DPS hasn’t paid their MPSERS bill all year.
The CRC report also highlights that in each of the four cases where the state has taken on school district debt, the former traditional school district has stopped educating students (good precedent). Legislative reaction to sending hundreds of millions of dollars to DPS has been cool.
“Our Children, Our Choice” campaign continues
A new public information campaign, called “Our Children, Our Choice” was launched last week by the Mackinac Center for Public Policy. This series of a dozen video vignettes features parents from Detroit who support school choice. Check it out!!
MDE says M-STEP testing going well; MEA backs away
According to MDE, the initial week of implementing M-STEP, the state’s new student assessment for grades K-8, has gone very well. At the same time, the MEA president announced this wee
k they don’t believe results of the new state assessment should be used to evaluate teacher performance, which is required by state law. So much for accountability, right?!
Georgia adopts A-F system for school accountability
Georgia Governor Nathan Deal signed into law a bill to create an A-F school grading system for Georgia schools (SB 133). A-F school grading systems enable parents, teachers, administrators and policymakers to clearly identify struggling schools, take action to improve those schools and recognize improvements. Additionally, the
bill creates a new Opportunity School District (OSD), which will provide more intensive support and interventions to turn around some of the state’s lowest performing schools. GLEP is pushing this same reform in Michigan.
Next Week
Monday, April 27
Tuesday, April 28
Wednesday, April 29
Thursday, April 30
Friday, May 1
Do you support what GLEP is doing to improve education in Michigan? Please consider making a donation to help us continue our efforts, and all contributions are very much appreciated!!
Respectfully,
Gary G. Naeyaert