DPS seeks help from the state
Change in law could limit charter schools
BY CHASTITY PRATT DAWSEY • FREE PRESS EDUCATION WRITER • September 19, 2008
Detroit could see an unlimited number of charter and suburban districts open schools in the city if enrollment falls below 100,000 next week as expected, local officials and researchers say.
Those new schools would likely accelerate the exodus from Michigan's largest school system. The drop also could diminish the school board's powers.
Lansing lawmakers are being asked to change state law so Detroit Public Schools can remain the state's only first-class school district. The status allows DPS to have unique financial powers because of its size and seven board members elected by districts. It also limits charter schools within DPS boundaries.
Enrollment is at about 96,000 students, Superintendent Connie Calloway said last week. If that number holds on the day students are counted to determine state funding, DPS would no longer be considered a first-class district -- unless the Legislature changes the definition. Currently, a first-class district must have 100,000 students.
The district's first-class status is among three discussions brewing in Lansing that could result in drastic changes for financially troubled DPS.
This week, Republicans discussed allowing a new and potentially larger charter school system as an alternative to failing districts, though it's unclear whether such a plan could pass.
On Wednesday, state Superintendent Mike Flanagan declared DPS in serious financial trouble, and asked the governor to appoint a financial review team. The state could appoint a financial manager to take over operations.
If lawmakers are going to change the Michigan School Revised Code so DPS can maintain its status, it must act soon -- count day is Wednesday, and audited figures typically become official by Nov. 15.
"People are starting to realize this is a pretty important issue we need to address," Tim Melton, D-Pontiac, chairman of the House Education Committee said of DPS's first-class status. "We're trying to use this as an opportunity for school reform."
DPS spokesman Steve Wasko, who is also its acting lobbyist, said the district's stability is at stake. "So many things we count on, that our community counts on" are "incumbent on remaining a first-class school district," he said. "To put us in a process where the very governance of the school board would be in question would just be another unnecessary indicator of instability."
Solutions to problems sought
But help for the deficit-ridden district -- which has to cut $522 million over two years -- could prove hard to get in Lansing.
Senate Majority Leader Mike Bishop, R-Rochester, said Thursday that he doubts lawmakers will change the law. The governor's review team should quickly report on DPS finances and allow officials to craft some informed long-term solutions, he said.
"What the vast majority of legislators are looking at is trying to solve the problems. We don't want to keep funding a district that doesn't function properly," Bishop said.
The legislature in June lowered the enrollment threshold for a first-class school district from 100,000 to 60,000 within the school budget bill. But another law, the Michigan School Revised Code, maintains the 100,000 figure. If it is not changed, the district could undergo several changes.
How the district could change
All 11 board seats could become at-large and the number of seats increased or decreased. Currently, seven of the 11 are by district. Whether an election would be needed soon is unclear, said Jeff Williams, senior vice president at Public Sector Consultants, a Lansing think tank. The Skillman Foundation hired the company to analyze the law's impact.
If first-class status is lost, other operations could change, too, including the way DPS borrows money, contracts for services, issues bonds, collects property taxes and operates the school police department, consultants found.
"This is an issue that's more than just about Detroit's kids. It's about many different aspects of public service in Wayne County," Williams said.
Without first-class status, Wayne County Community College and Bay Mills Community College could open charter schools in Detroit, though both said they have no plans for them now. Suburban districts could open schools, too.
"That's something to be concerned about," said Detroit school board member Tyrone Winfrey.
Fear, politics play a role
Detroit officials and unions fear that if lawmakers do not change the law, it's a doomsday prediction for DPS.
The past decade has shown that new charter schools in the city have resulted in more parents leaving the district, leaving DPS to deal with 60,000 fewer students, less funding and school closures.
Although the school officials want to retain first-class status to keep out more charter schools, some lawmakers are discussing allowing a new charter school system.
Led by Bishop and Wayne Kuipers, R-Holland, lawmakers discussed an idea this week that they are calling "Neighborhood Public Schools."
The idea -- not yet a bill -- would allow corporations and community groups to open schools without an authorizer. It would target underperforming districts, not just Detroit.
Sen. Irma Clark-Coleman, D-Detroit, a former DPS board member, said a Republican-led reform bill would be worse than the fallout from losing first-class district status.
"Republicans have never been interested in helping out Detroit in terms of school issues. I don't see any evidence that they are going to be agreeable to assist Detroit in redefining what a first-class school district is," she said.
Contact CHASTITY PRATT DAWSEY at 313-223-4537 or cpratt@freepress.com.
Posted: Wednesday, 17 September 2008 4:37PM
Review Team To Examine DPS Finances
Detroit (WWJ) -- Detroit Public Schools have a serious financial problem and a state review team will examine the district's finances, according to state schools Superintendent Mike Flanagan.
The designation could eventually lead to an emergency financial manager being appointed to make decisions for the district.
Flanagan says he's confident Michigan's largest school district can get back on track financially, however if no agreement is reached between a review team and the school board, Flanagan could ask Gov. Jennifer Granholm to appoint a financial manager.
The decision was announced one day after Flanagan met with Detroit Superintendent Connie Calloway and some Detroit School Board members in Lansing to outline a deficit elimination plan.
Detroit Public Schools spokesman Steve Wasko tells WWJ the district "thoroughly welcomes" the move. Wasko said the move is an extension of a strong partnership between DPS and the Michigan Department of Education.
Detroit Public Schools submitted a two year deficit elimination program that would eliminate a 408 million dollar deficit, however Wasko says the deficit would balloon to 525 million dollars at the end of two years. Wasko said the deficit was the result of past administrations not "rightsizing" the district over several years.
Wasko and Flanagan both stressed the action isn't a state takeover of the district like one that happened during the Engler Administration.
"This is an opportunity to help get the district on-track financially,” Flanagan said. “We see positive things being done in the classrooms that are focused on student achievement, and need to secure the financial stability of the district.
“I firmly believe that the actions being taken are going to make the Detroit Public Schools stronger for the children of Detroit,” Flanagan said.
The Governor will appoint the Review Team, which by law must consist of the State Superintendent of Public Instruction, State Treasurer, State Budget Director, and nominees of the Speaker of the Michigan House of Representatives and Senate Majority Leader.
The group has a month to examine the financial condition of the district and report its findings to the Governor and Flanagan as to whether a financial emergency exists in the district.
To avoid a financial emergency being declared, the Review Team and the local board of education can enter into an agreement that outlines direct actions the district must take to resolve the problem.
If no agreement can be reached, the State Superintendent has the authority to determine that an emergency financial condition exists and submit to the Governor three names from which to appoint an Emergency Financial Manager.
An Emergency Financial Manager would assume authority over all fiscal matters of the school district and makes all fiscal decisions for the district.
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