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Michigan Senate OKs bailout for Detroit schools

Jun 8, 2016

Michigan senators have approved a $617 million bailout of Detroit's debt-ridden school district.

The Republican-controlled Senate narrowly passed the restructuring package late Wednesday, nearly a week after House passage. The bills soon will reach Gov. Rick Snyder for his expected signature as long as the House OKs some changes, likely later in the night.

The rescue comes two years after the state helped bail out Detroit's municipal government as part of its bankruptcy case.

The ailing district has been managed by the state for seven years, during which it has continued to grapple with plummeting enrollment and recent teacher sick-out protests.

Under the legislation, the district would be split in two and control would be returned to an elected school board.

The new debt-free district would educate students. The old district would retire $617 million in debt over roughly 8 1/2 years.