Economics of Liberty Gov't Incompetence

Detroit Schools Are Broke, Seek Massive Bailout

Detroit public schools are broke! Untenable pension packages have already undue financial hardship on the state of Michigan. Now Detroit wants taxpayers to pony up to save their school system from ruin.

Breitbart reports

Detroit Public Schools could run out of cash around six months to a year from now. In order to keep that from happening, state legislators have been asked to approve a bailout of $715 million over ten years. State Treasurer Nick Khouri says that without any financial help, Detroit Public Schools will run out of cash in just a matter of months.

Both Detroit Schools Emergency Manager Darnell Earley and Khouri said that they cannot file for bankruptcy because the majority of the debt owed is to the state.

While school enrollment declines as much as 10-20% a year, the goal for the Detroit Public Schools is to reduce the annual loss in the two upcoming years and try to get it to level off in the 40,000 student range.

Lawmakers from out of state agree that schools are important, but fear that their constituents would not like the idea of their tax money being used in a Detroit bailout.

Falling attendance and running out of cash. The city and state run exclusively by liberals for the better part of the last 60 years is in some serious trouble. The city has already had to close schools to manage its budget.

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