Whew....

State payment allows DPS to make upcoming payroll

BY CHASTITY PRATT DAWSEY • FREE PRESS EDUCATION WRITER • March 10, 2009

The Michigan Department of Education has approved an advance payment that will allow the financially troubled Detroit Public Schools to make payroll next week, according to a letter that DPS released today.

The advance – DPS’ third so far this school year – will be sent as a result of a request from the school district’s new state-appointed financial manager, Robert Bobb.

The state will pay DPS its monthly state aid payment of $69.8 million on March 16, one day before paychecks are distributed. An investigation by the Free Press showed that DPS faces budget shortfalls for half of the payroll periods for the rest of this school year. Without the advance payment, DPS would be short about $12 million needed to pay its 13,600 workers.

In recent months, as the deficit has mounted, DPS has paid its employees while putting off payments to vendors. DPS has a deficit of at least $150 million and is behind on payments to vendors by more than $45 million, Bobb said last week.