House Committee Hears Testimony on Detroit Schools Legislation

Liz Gullett

House Committee Hears Testimony on Detroit Schools Legislation

Feb 26, 2016

This week, the House Appropriations Committee held a hearing on a set of House bills seeking to make reforms to Detroit Public Schools (DPS). The legislation would create a new district charged with education, while the DPS would exist only to pay off the current debt. It also calls for the state to invest $72 million per year for ten years in Detroit schools, from dollars in the state General Fund. It also calls for an elected school board in eight years, prohibits aspects of collective bargaining, and requires teacher merit pay.

State Treasurer Nick Khouri testified to the committee that DPS is projected to be bankrupt by spring, or early summer at the latest. If they declare bankruptcy, the state could be on the hook for $1.8 billion. According to Mr. Khouri, due to the current debt load DPS couldn’t adjust spending to balance their books.

The nonpartisan House Fiscal Agency (HFA) presented to the committee the numbers behind the situation in Detroit schools. According to HFA, over the last ten years, enrollment has declined by 66.5%. To adjust for the change, staff levels were reduced by 61.6% and the number of buildings were reduced by more than half. Over the same time period, DPS revenue declined by 54%, and expenditures were reduced by 53.9%.

The package of bills remain before the House committee awaiting further consideration. In a statement, Representative Al Pscholka (R-Stevensville), chair of the House Appropriations Committee, stated that the committee will move quickly on the package but won’t rush the process.

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