Pontiac teachers face payless end of school year

PONTIAC, Mich., (WXYZ) - Pontiac Schools face running out of money by next week.  Teachers and staff may have a payless payday on May 17.

The school board has an emergency meeting set for 5 p.m. today to pass a Deficit Elimination Plan that has to go immediately to the State Department of Education.  The state sent an eight page letter to Pontiac this week outlining the bad financial news. 

The Pontiac School deficit was originally though to be $24 million as of June 30, 2012.  But an audit shows the actual deficit is $37.7 million.  And that's with the superintendent cutting $11 million in operations. 

The state says Pontiac has a "history of supplying the Department with DEP (Deficit Elimination Plan) information that is inaccurate or inconsistent with actual revenues and expenditures at year end." 

Superintendent Brian Dougherty tells 7 Action News the district has only $100,000 cash in the bank.  It needs $1.1 million to make payroll. 

The state has been withholding state aid because of the financial reporting problems.  If the state does not believe the problem can be solved on the local level, an emergency manager could be appointed. 

Pontiac Teachers Union President Aimee Mc Keever tells 7 Action News this can be solved on the local level and an emergency manager is not needed.  She would not say if teachers will continue working without pay to finish the school year that ends on June 14.  5100 students are in the Pontiac schools. 

The Superintendent has been in Pontiac less than a year moving from Pennsylvania.  He's resigning effective May 17.

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