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State superintendent backs “early warning system” for districts in financial trouble

Sep 11, 2014

Credit Sharon Drummond / Flickr

Michigan’s top education official says he supports legislation designed to prevent schools from getting into financial trouble.

State Superintendent Mike Flanagan today released a report showing the number of districts with budget deficits has not improved in recent months. He says the legislation would create an “early warning system” so the state can intervene before districts fall into deficit.

But Flanagan says the legislation should not be so broad that hundreds of schools get flagged.

“I think right now they have to reduce the number of factors so that you don’t have 250 on call. You want a reasonable number that you’re watching that are potentially deficit, not so many that you can’t really do justice to it.”

The bills would free up money in state loans and bonds for schools that show signs of budget problems.

Republican state Senator Howard Walker is sponsoring the legislation. He says it would also make it easier for the state to appoint an emergency manager if districts don’t cooperate.

“Let’s identify them early. Let’s help them. And if districts are willing to blow through those red flags, well, then there’s going to be consequences. And I think those consequences being out there will serve as a deterrent.”

Schools groups worry it would be too easy for the state to put districts under an emergency manager. They also say hundreds of districts would be flagged the way the legislation is currently written.