testify http://michiganradio.org en Detroit Public Schools http://michiganradio.org/post/detroit-public-schools <p>Robert Bobb, the emergency financial manager of the Detroit Public Schools, came to Lansing yesterday to ask for something he has to know he&rsquo;s probably never going to get.</p><p>He wants the legislature to give what amounts to a loan guarantee to the company that insured the schools&rsquo; last round of borrowing. If that firm, Assured Guaranty Municipal Corporation, doesn&rsquo;t get that assurance, it may block the schools from borrowing more money? Why? Because it worries DPS will go bankrupt.</p><p>Which would leave Assured Guaranty holding the bag. And it&rsquo;s a pretty unpleasant bag, The schools are hemorrhaging money and students. Bobb came in two years ago, full of confident promises to eliminate the deficit. But it has only gotten worse.</p><p>Assured Guaranty insured a loan for a little over a quarter of a billion dollars the schools borrowed in 2005. Now, the schools need more. They have a new deficit of $327 million dollars.</p><p>That&rsquo;s more than half their entire general fund budget. To make ends meet, Bobb says he needs to borrow $219 million next month. Thu, 10 Feb 2011 17:24:33 +0000 Jack Lessenberry 1240 at http://michiganradio.org Detroit Public Schools