Terry Brown

MichigansChildren / YouTube

State Superintendent Mike Flanagan says the consequences of turning entire school districts over to for-profit charter school companies deserves more consideration from state lawmakers.

Flanagan told a state panel last week it’s not clear if the Muskegon Heights school district, or the for-profit charter company that ran it the last two years, will face any consequences for running up a deficit big enough to require an emergency loan worth $1.4 million and two cash advances to keep schools open through June. It’s unclear exactly what the deficit is for the 2013-2014 school year.

The Muskegon Heights school district is now looking for a new operator. That’s after the district and its emergency manager agreed to end its contract with Mosaica Education Inc. when the company couldn’t turn a profit.

“Now that (Mosaica) is leaving, they pretty much told us they’re not going to do (the district’s) deficit elimination plan. To follow up on that, we should wait for the new management company and deal with them,” Dan Hanrahan, Michigan Department of Education’s director of state aid and school finance, told the panel.