Tagged: Fred Durhal

Governor Snyder has signed legislation he says will let financially-strapped school districts guarantee their bond payments—using state school aid funds.

The legislation applies to all school districts with deficit elimination plans or emergency managers. But it was written with the Detroit Public Schools in mind.

Detroit State Representative Fred Durhal, who sponsored the bill, says the new law should help set bondholders’ minds at ease.

A political fight in Lansing could mean tens of millions of dollars in un-budgeted borrowing costs for Detroit Public Schools over the next few years.

At issue is legislation that would have allowed the district to make a new deal with creditors. The deal would have given the troubled school system more time to pay off its bonds. But the measures were tabled after Republican and Democratic leaders had a disagreement over an unrelated measure and adjourned for the year. Now officials with the school system will have to come up with the cash more quickly.