Stateside
5:05 pm
Tue May 13, 2014

Michigan is running out of money to loan to struggling schools

The Muskegon Heights school district is one system that has experienced "severe financial stress." They received more than $12 million from this loan board.

There's a state law that gives a special board up to $50 million that can be loaned to struggling school districts.

The long-term, low-interest loans are supposed to help these districts restructure and pay down their debt.

But this emergency loan board has already given out $48 million. That’s 97% of the money that was supposed to last until 2018.

How did this happen? And is there a way for struggling school districts to get back on their feet without needing an emergency manager or having to ask for another loan?

Jeff Guilfoyle with Public Sector Consultants joined us today to talk about this problem.

*Listen to the interview below.