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Fri December 9, 2011
Muskegon Heights school board asks for an emergency manager
Update 11:36 a.m. The Muskegon Heights School Board plans to take the unusual step of asking for a state takeover. And they say they want Marios Demetriou, a Deputy Superintendent at the Muskegon Area Intermediate School District, to be the person who servers as their emergency manager.
The school district has a deficit of around $9 million, and it’s growing. The board blames rising expenses, funding reductions, declining enrollment, and soaring health care costs as reasons for its problems. The Muskegon Heights Superintendent, Dana Bryant, has decided to "give up his job" to "help with financial relief efforts." He'll retire at the end of the year.
The Muskegon Area Intermediate School District Superintendent, Dave Sipka, will act as interim Superintendent for Muskegon Heights in the meantime. If one is appointed, an emergency manager could change or end union contracts to reduce the district’s deficit.
Doug Pratt, with the Michigan Education Association, said employees in Muskegon Heights have made sacrifices, and more concessions are not the answer. “The issue really is the fundamental lack of adequate funding from Lansing, especially when you look at the most recent cut of a billion dollars from public education that the legislature enacted earlier this year,” said Pratt.
Even though they’re asking for one, an emergency appointment wouldn’t come right away. A financial review would have to be performed before an EM is appointed. The Michigan Department of Education says they have not received the official request from the Muskegon Heights School Board yet, but they’ve been notified the request is coming. Michigan Department of Education spokeswoman Jan Ellis said the state has had “great concern over the financial stability of Muskegon Heights for quite some time.” She said the Muskegon Heights deficit has grown from $800,000 to around $9 million in the last 5 years. “Their ability to repay that debt or balance their budget becomes harder and harder, just like it would with everyone’s personal budget, if they got further and further in debt,” said Ellis.
The Muskegon Heights School Board has asked for an emergency manager to run the school district.
Thursday, December 8, 11:36 p.m.
In a statement, Muskegon School Board President Avery Burrel said,
"This is the first step in a long process of rebuilding our district's operational future. With the loss of Dr. Bryant's leadership, and the load of debt we are under, my fellow board members and I felt we must set aside our personal pride and ask the State and MAISD for help. Our children are counting on us to do so, and the future of our district depends on our actions today."
Most school districts or cities work to avoid an emergency manager appointment, but the Muskegon Heights school board is practically begging for an emergency manager.
The Muskegon Chronicle reports the school board owes more than $900,000 to the state retirement system.
From the Muskegon Chronicle:
The school board in a surprising move Wednesday voted to ask that Marios Demetriou, the deputy superintendent for the Muskegon Area Intermediate School District, be appointed the district's emergency financial manager.
It also eliminated the superintendent's position, accepting the Dec. 31 retirement of Superintendent Dana Bryant, who in a statement said that considering all the other job losses in the district “I need to be man enough to give up my own job to help with the financial reform efforts.”
There are five emergency mangers operating in the state today.
With other school districts and cities in financial distress, more are likely to be appointed.