New details released on Detroit Public Schools' deficit-elimination plan

DETROIT (WXYZ) - Leaders with Detroit Public Schools (DPS) are unveiling new details about a plan to balance the district's budget.

According to a district spokesperson, DPS is dealing with a budget deficit of $120 million for the 2014 fiscal year, but there are no plans to close schools for the fall of 2014.

The plan calls for resolving the legacy deficit within the next four years.

DPS has already saved millions of dollars by closing surplus properties and planning auctions for others, according to a district spokesperson.

Leaders have also worked to offer an early severance program for district employees, which will save about $30 million over five years.

Restructuring employee health care costs will also save DPS about $14 million per year.

There are also efforts underway to cut costs by developing ways to share some services with the City of Detroit, charter schools and the EAA.

7 Action News has confirmed DPS financial leaders will be meeting with representatives from the Departments of Treasury and Education today to discuss the deficit-elimination plan.

The plan must still be approved by the Michigan Department of Education.

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