Tagged: Highland Park schools

Governor Rick Snyder has put Highland Park schools parents on notice that the district is in danger of closing next month.

The warning came in a letter Snyder sent to parents. It says the district’s finances have reached a crisis stage, and that Highland Park might not be able to finish the school year without state intervention.

"We were hearing lots of concerns, lots of frustration" the governor's spokeswoman, Sara Wurfel, said of the letter. "And so we just wanted to make sure we were communicating directly so they could hear from the governor, and he could begin to help answer those questions as best we can at the time."

But Highland Park school board secretary Robert Davis says the letter serves little purpose other than to scare parents, "and in turn may cause some parents to take their kids out of the district, which will further cripple the Highland Park school system."

The district's cumulative deficit is more than $11 million. Two weeks ago, the state had to front the district money to meet payroll.

A state review team has recommended that Governor Snyder appoint an emergency manager to run the district. Governor Snyder is expected to make a final decision once he receives a report from the state Treasury Department from a hearing held last week, at which district officials opposed state intervention.

Highland Park school district officials are trying to convince the state not to appoint an emergency manager to run the district. A hearing today in Lansing may be their last chance.   

A state review panel says the Highland Park School District is in a ‘Financial Crisis’.   The district is $11 million in debt.   It’s student population has plunged from more than 3000 students in 2006 to less than a thousand today.    

A review panel member says the school board’s efforts at reducing their budget deficit have been “going in the wrong direction”.    

Update 4:58 pm:

State Treasurer Andy Dillon says the district’s money problems are deep and troubling. He says the state will advance the school district $188,000 so it can meet payroll tomorrow. 

"I have no comfort that the district has a handle on their finances," said Dillon. "The numbers move hourly. We have three people down there today trying to get a handle on how much they actually need for payroll. And I’m very uneasy about it, because I can’t tell you in the middle of February that they’re going to make payroll."

But school board member Robert Davis says the state has contributed to the district’s financial woes by requiring that it close a career academy that enrolled 1,500 students.

"Their plan and intent is to fold the Highland park School system into the Detroit Public School system," Davis said. "That’s what this is all about."

Highland Park Schools' student population has declined 58% percent since 2006. 

State officials say their objective is to keep the district’s doors open through the end of the year. But they say that will be difficult. The district needs a cash infusion of at least $3 million to get through the school year. But the maximum the state is allowed to advance under hardship cases is $2 million.

The district's cumulative deficit is $11.3 million. That’s about $10,000 for every student enrolled.

12:56 p.m.

Governor Rick Snyder has declared a financial emergency in the Highland Park school district, Rick Pluta reports. The district will have a chance to challenge the finding at a January 17th hearing before the governor names an emergency manager.

In a statement released today, the Governor says:

“It is critical that students in the Highland Park School District get the education they need and deserve. For that to continue, the Highland Park School District must have stable finances. Through the comprehensive reviews that have been conducted, it is clear the district faces monumental financial challenges.”

On January 4th a state review  panel recommended the governor appoint an emergency manager to fix the school district’s "financial emergency." The financial review team had been looking at the Highland Park School District’s books since November. Earlier this month, Steve Carmody reported:

The panel’s report to the governor finds the school district is $11 million in the red. That works out to about $10 thousand for every student enrolled.  The school district’s deficit has grown by $3 million in just the last year. The school district’s debt has grown, as its student population has fallen. Nearly 3,200 students attended Highland Park schools in 2006. This year, fewer than a thousand students are enrolled.

Emergency managers are already running the Detroit public schools,  as well as the cities of Flint, Pontiac, Ecorse and Benton Harbor. Financial review teams are also looking at Detroit and Inkster's books.

Highland Park schools could be Michigan’s second school district to get an emergency manager. The state moved a step closer to that scenario today.

Governor Rick Snyder has appointed a 10-member team to comb through the troubled school district’s finances – and maybe help it avoid a state takeover.

A preliminary review of Highland Park Schools’ books wrapped up late this summer. It found “probable financial stress,” with recurring deficits, and a current deficit of more than 15 percent of the district’s general fund revenues. The state schools chief recommended the second review.

The review team has 30 days to report its findings to the governor.

Right now Benton Harbor, Ecorse and Pontiac – along with Detroit Public Schools – are under emergency managers. A secondary review of Flint’s finances just got under way.