Snyder Signs Bills to Better Position Financially Troubled Schools
Governor Rick Snyder signed legislation yesterday intended to assist financially struggling school districts, including Detroit Public Schools (DPS) as they work toward financial reforms.
"This legislation supports our mission to put Michigan school districts, including DPS, in the best possible position to meet their fiscal challenges, emerge stronger, and ensure students can get the quality education they need and deserve," said Snyder.
The bills allow certain school districts and intermediate school district under an emergency manager or deficit elimination plan to use school aid payment to bolster the security of bonds issued by the school district. The legislation requires no additional appropriation or state indebtedness. It simply ensures bondholders will have less risk now and in any future financing and reduces borrowing costs for DPS and other fiscally distressed school districts.
"I appreciate the support of the governor and my legislative colleagues in helping financially troubled school districts, including Detroit Public Schools, in their efforts to reduce (or limit) borrowing costs," said state Rep. Fred Durhal Jr. who had sponsored the bills. "This is an excellent step in ensuring that the ongoing reforms in DPS and other districts can continue. Stronger schools mean brighter futures for our children. That's what it's all about."
Visit www.legislature.mi.gov for more information.