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state emergency loan board

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Some Detroit Public Schools debt has been downgraded again — this time, into junk territory.

The credit rating agency S&P Global lowered its rating on two sets of bonds, issued in 2011 and 2012. DPS still owes more than $200 million on them.

S&P says its concerns stems from district’s recent restructuring.

To avoid a potential bankruptcy, the state split DPS in two — with the “old co” existing only to re-pay historic debts with local tax revenues.

Lindsey Smith / Michigan Radio

The state is giving Benton Harbor Area Schools another emergency loan.

The southwest Michigan school district of roughly 2,200 students has already received more than $5 million in emergency loans from the state’s Emergency Loan Board. A Michigan treasury department spokesman says last week the appointed board approved another one, this time for $3.3 million, making it the largest loan the board has given the district so far.

Inkster voters are deciding a millage renewal this Election Day — for a school district that no longer exists.

The state dissolved Inkster schools in July 2013.

But the district still exists on paper to pay off debts — including a $12.5 million emergency loan from the state in the spring of 2013.

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Pontiac schools are getting an emergency $10 million loan from the state to pay its employees and vendors.

This is the second $10 million emergency loan the state has given the district. The previous one was made last year.

kids in classroom
Mercedes Mejia / Michigan Radio

Michigan lawmakers have approved loaning more money to schools facing serious financial problems.

Long term, low interest emergency loans help school districts restructure and pay down their debt.

But the state’s Emergency Loan Board already offered more than $48 million dollars in loans to school districts, almost all the money state law allowed. Now the cap has been lifted to $70 million.

Kevyn Orr surrounded by the press
Gerald R Ford School of Public Policy on Flickr / Flickr

The state's Emergency Loan Board is not very transparent regarding how it makes decisions for state emergency management or consent agreements.

The board is made up of three members who are appointed by the Governor, and they have the ability to lend millions of taxpayer dollars to schools.

Lindsey Smith / Michigan Radio

Benton Harbor’s school board is working to please Michigan’s Department of Treasury so it can get an emergency loan.

The school board approved plans to let Berrien County’s intermediate school district run its business office Tuesday night. Plante Moran currently runs the office. But the switch to the county district is expected to save around $125,000 a year.

Government records revealed under the Freedom of Information Act.
Lindsey Smith / Michigan Radio

In order for parents to make the best decisions for their children, they need to know what’s going on. So do taxpayers and voters.

In my years of writing about school districts all over the state, I’ve learned everyone wants to brag about the successes. No one is in a hurry to admit when things aren’t working for students.

Lindsey Smith / Michigan Radio

Michigan is nearly out of money to lend school districts in case of financial emergencies.

The state treasury department had up to $50 million total to lend school districts facing financial emergencies. That amount was supposed to last through 2018. But that apparently it isn’t going to be enough.

Steve Carmody / Michigan Radio

Flint firefighters’ next contract will be decided by a state board.

Last night, the Flint city council approved an alternative contract to the one the city’s emergency manager wants to impose on Flint firefighters.