The Michigan State Department of Treasury sent out notice to state leaders on Thursday. It has a list of eleven school districts with big deficits that it will be looking at closely.
The notice is part of a new process that could lead to the appointment of emergency managers.
It comes after changes in the law that went into effect over the summer. The changes aim to ensure the state isn’t surprised by a district facing disaster. It creates an early warning system by requiring Treasury to monitor districts that have submitted a deficit elimination plan that is longer than five years.
Seven of the districts notified were in metro-Detroit. They include Hazel Park City School District, Westwood Community Schools, Mount Clemens Community School District, the Southgate Community School District, New Haven Community Schools, Clintondale Community Schools, and Lincoln Consolidated Schools.
The Michigan Treasury Department is giving these districts notice, they are being watched, need to share their plans, and if needed- the state can help.
7 Action News spoke to the assistant superintendent in Hazel Park. He says school leaders got notice this would happen months ago and worked with the state on a revised budget.
“Hazel park has been working cooperatively with the state to eliminate the deficit by June of 2020,” said Daniel Romzek, the assistant superintendent at Hazel Park City Schools.
