The Detroit Public Schools may have no choice but to file for Chapter 9 bankruptcy, which would make it the first big-city school district to use bankruptcy court to avoid paying millions to vendors, employees and bondholders, experts said Thursday.
DPS Emergency Financial Manager Robert Bobb is continuing to consider the option and met Thursday with retired U.S. Bankruptcy Judge Ray Reynolds Graves.
Jim McTevia of McTevia & Associates of Bingham Farms, which works with companies with serious financial troubles, said DPS has three choices to solve its projected $259-million budget deficit: raise more money, cut costs or declare bankruptcy.
More revenues are extremely unlikely, given DPS's projected enrollment decline of 12,000 students and anticipated state funding cuts. McTevia estimated DPS would have to cut its costs as much as 50%, an almost impossible feat given that more than 80% of most school district costs are salaries and benefits mandated by contracts.
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A bankruptcy filing could reduce the amount DPS will pay vendors and bondholders. It also could allow a judge to rule on DPS's requested changes to employment contracts, McTevia said.
DPS spokesman Steve Wasko said in an e-mail that the bankruptcy meeting had nothing to do with the district's unions.
No school district in Michigan has ever filed for bankruptcy, according to the Michigan Department of Education. Nor has any large school district nationwide, according to the Washington-based Council of the Great City Schools, an association of 67 of the nation's largest school districts.
This ain't really life
ReplyDeleteain't really life
ain't really
nothing but a movie
THIS ain't really life
ain't really life
ain't really
nothing but a movie
and we wanted John Wayne
I agree I came out of school know absolutely NOTHING. Had to learn how to write a check, look for an apt., save my money, learn to drive,open a bank account, get a loan, mortgage, interest, pension..the list goes on and on, they teach you nothing in school. Algebra? I really need that today..You stupid gov't
ReplyDeleteGoogle George Carlin on Education. He said it the best in his standup. All the elite want is obedient workers, not free thinkers.
ReplyDeleteAn A+ student earns that grade by simply being the best parrot he or she can be - regurgitating words and numbers. A student that thinks for himself could never be an A+ student. You are rewarded for conforming.
Jordan Maxwell also stated it very well. The government is getting exactly what they want; if not, they would change it.
Schools are also good places to give the kiddies their mercury and detergent filled vaccines.
Government schools, welcome to how it works in the real world.
ReplyDeleteThere are millions of unemployed people, and the tax paying public can’t afford to continue to support 80% of the district salaries and benefits. Districts need to start cutting the fat and the contracts.
1. we could close all schools every other year.
ReplyDelete2. we could limit pay only to teachers who have face-to-face contact with students. The office automation of the past decades has reduced the principal's job description, or the principal can be outsourced. ok, keep bus drivers. Parents and students can rotate the janitorial services.
3. Use the television and internet to have one teacher conduct lessions. Anyone who wants to tune in to any classroom, including Harvard University, can do so. Content mastery is the only degree. Keep only the lab set up intact. Stream every other course.
If you don't eat your meat you can't have any pudding.
ReplyDelete"We don't need no education."
Do you think we can get a link or reference for this post?
ReplyDeleteYou seem to be using this article here: http://www.freep.com/article/20090710/NEWS01/907100316/With--259M-deficit--DPS-may-wind-up-in-bankruptcy
proper credit would be nice :D
ReplyDelete