Michigan’s top treasury official is warning lawmakers to not let the state’s largest district go bankrupt.
A state House panel on Wednesday held its first hearing on legislation to keep Detroit Public Schools from going broke in April.
State Treasurer Nick Khouri told lawmakers bankruptcy would likely cost taxpayers more than twice as much as a state bailout.
“The total cost to the state and others is about $700 million with this package. It’s probably about $1.8 billion or so if the district actually files and we work through bankruptcy,” said Khouri.