Tagged: emergency financial manager

Muskegon Heights students are heading back to class today to begin the second half of what’s been a very turbulent school year.

This story is the first in a four-part series about how things are going so far in Michigan's first fully privatized public school district. Find part two here, part three here, and part four here.  

Old district “implodes” after years-long financial problems

The school board in Muskegon Heights battled a budget deficit for at least six years in a row. They gave up the fight a year ago and asked the state to just take over. 

“The system that was in place imploded,” said Don Weatherspoon, the guy the state eventually sent in late April to be the emergency manager.

"Enrollment went down, costs went up, they borrowed more than they could pay back; you’re on a collision course with disaster and that’s what happened," Weatherspoon explained. Student enrollment is a big factor in how much money a school district receives from the state.

“Everything that you can think of basically broke down. Discipline, learning, record-keeping, financial accounting, etc,” Weatherspoon said.

By May, Weatherspoon discovered the district is more than $16 million dollars in debt; so much debt it couldn’t afford to open school in the fall.

After years of legal wrangling, Highland Park’s former emergency financial manager will go on trial for alleged embezzlement next year.

A Michigan Supreme Court ruling this week reinstated charges against Arthur Blackwell III.

Blackwell was emergency financial manager from 2005-2008. He’s accused of writing himself $264,000 in checks from city funds.

Gov. Snyder signed several bills into law today that he says will strengthen communities and protect taxpayers.

This morning, Michigan Public Radio Network's Rick Pluta reported Rick Snyder signed an updated local emergency manager law to replace the one rejected last month by voters. 

Mr. Snyder also signed 18 other bills ranging from extending school loan programs to tracking pollution.

In a press release, the Governor said the new laws protect the Michigan economy.

Governor Rick Snyder has signed an updated local emergency manager law to replace the one rejected last month by voters.

The governor says the new law is an improvement because it gives local governments more options to come up with a plan to dig out of a financial crisis.

Critics say it's not very different from what voters said "no" to. It still grants emergency managers sweeping authority over local governments that are taken over by the state.

Former Governor Jennifer Granholm appointed Joe Harris to run Benton Harbor’s dismal finances nearly three years ago.

Then City Commissioner James Hightower supported the takeover when others didn’t. But Hightower, who’s now the city’s mayor, says Harris has become increasingly difficult to work with.

Hightower says he and other elected officials told the state they would support a special assessment fee on all property owners in exchange for six conditions. One of them was that Joe Harris be replaced by the end of January.