Those who think there couldn't possibly be another major urban school district under greater fiscal stress than Milwaukee Public Schools (MPS) need look no further than across Lake Michigan. Articles in Saturday's and today's Detroit News report how Detroit Public Schools (DPS) was required either to accept a consent decree issued by a state review team examining its fiscal situation, or have a state-appointed manager take control of its finances. The school board opted to accept the decree, which requires it to submit a deficit elimination plan within four weeks and abide by a host of stringent reporting requirements.
How did the Detroit school district get into this predicament? To start, there is the district's perennial budget deficit (at least $10 million per year since 2000), which at one point earlier this year was estimated at $400 million in a $1.1 billion annual budget. Then there was the district's inability to meet payroll obligations during two separate months last summer, necessitating a $103 million advance in state aid payments, and its continued heavy reliance on borrowing to address cash flow needs.
DPS also faces steep declining enrollment, with a reduction of 67,000 students since 2000 to the current estimate of 98,000 students. In a recent article in Education Week, an official with the Council of the Great City Schools attributed this decline both to the flight of Detroit residents with school-age children out of the city and to competition from charter schools.
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