State OKs Saginaw school district's Deficit Elimination Plan

Sep 2, 2014

The state has signed off on a plan to eliminate the Saginaw school district’s budget deficit.

Last winter, discussions about closing Saginaw High School led to emotional debate.
Credit Steve Carmody / Michigan Radio

Teacher pay cuts and closing a high school are part of the Deficit Elimination Plan the district sent to the state Department of Education back in July. 

Today state education officials approved the plan, which “is largely dependent on staff reductions and employee concessions.” 

The Saginaw school district has seen its deficit rise every year since 2010.  The deficit is expected to approach $7 million by the end of the current school year.

The teachers’ union has already agreed to a 6% pay cut.  That’s on top of a previously approved 3% pay cut.   

The Saginaw school board has yet to decide which city high school will close:  Saginaw or Arthur Hill.  A decision is expected this fall.   

There are about 7,000 in the Saginaw school district.