Detroit Schools Released from Active State Oversight

Liz Gullett

Oct 30, 2020

The Detroit Financial Review Commission voted unanimously this week to grant a waiver releasing Detroit Public Schools and Detroit Public Schools Community District from active state oversight. The commission no longer has final decision-making authority over the districts’ budgets, collective bargaining agreements and contracts.

To become eligible for the waiver, both districts had to adopt deficit-free budgets for three consecutive years, obtain the ability to sell and guarantee municipal securities or other similar debt, and follow generally accepted accounting practices as required under state law, as well as meet other technical requirements.

The Detroit Financial Review Commission will continue to meet monthly to ensure both districts meet the conditions of a waiver, although it will play no active role in day-to-day operations. The districts will be required to submit monthly financial reports, adopted budgets, and financial plans each year. If they continue to balance their budgets and meet other basic fiscal requirements, the commission will have limited oversight for the rest of its existence.

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