Detroit Public Schools to cut teachers' pay in upcoming school year

Aug 20, 2014

Outside Bagley Elementary in Detroit.
Outside Bagley Elementary in Detroit.
Credit DPS

Michigan education officials approved a plan by Detroit Public Schools to cut teachers' pay by 10%.

State Superintendent Mike Flanagan announced today that he signed off on the district's five-year deficit elimination plan.

The Detroit Public School district has been in financial trouble for quite some time. DPS currently has a $127 million deficit.

The Detroit News’ Jennifer Chambers reports that school closures are also part of the plan:

The pay cut, which will impact all teachers and administrators starting Oct. 1, came after the district was forced to make budget cuts to offset expected revenues from a failed countywide tax millage. The wage concession for teachers would generate $13.3 million in savings. District wide, the savings will be $21.1 million.

The district’s financial plan also calls for the closure of 24 schools or buildings over four years, starting with the 2015-16 academic year.

In addition to the cuts, Chambers reports the state’s Local Financial Assistance Loan Board approved a plan that will allow DPS to borrow $111 million in state aid notes to pay its bills.