Plan to restructure Detroit schools takes a step forward

LANSING, Mich. (AP) — The Michigan Senate approved a $720 million restructuring plan Tuesday that would divide Detroit's ailing school district in two, creating a new district for students to attend while keeping the current one intact to retire a massive operating debt over a decade.

The vote, a key step but not the final word in the Legislature, came nearly 11 months after Republican Gov. Rick Snyder's first called for a rescue package for the Detroit Public Schools, which has been under state financial management for seven years, is burdened with debt and declining enrollment and may start to run out of money in April.

The legislation leaves the allocation of the money to lawmakers during the annual budget process and is structured so that if future lawmakers decide against using $72 million a year of Michigan's settlement with tobacco companies, they essentially would have to reduce funding for other school districts.

"I acknowledge that these bills will not alone transform (Detroit Public Schools), but they are critically necessary to begin putting this district on a more positive financial path," said Sen. Goeff Hansen, R-Hart, who was among 13 Republicans and eight Democrats in the GOP-controlled chamber to back the legislation. Thirteen Republicans and three Democrats opposed it.

The six-bill plan, sent to the Republican-led House for consideration, aims to ensure the newly created district can spend more on academics if freed of its debt payments. Detroit's enrollment is a third of what it was a decade ago and the district is considered the worst of its size in the country. More than half of students living in the city attend a charter school, which has prompted criticism that they're being opened largely unchecked to the detriment of the district.

"It's important to get your arms around every player that has a voice in your district," said Sen. Bert Johnson, D-Highland Park, who represents parts of Detroit.

The legislation would create an accountability system that grades all public schools — both traditional ones and independent charters — on an A-through-F scale, end state financial management and return governance to an elected school board in August. It also would empower an oversight commission, primarily made up of state appointees, to oversee finances until the debt is repaid.

An education commission, entirely appointed by the mayor, would make recommendations about where schools are opened or closed. Any new charter academy or traditional school could not open automatically without the panel's approval unless it would replicate a school given an "A'' or "B'' on a grading scale. "F''-rated schools would be closed or subject to state intervention.

Some Republicans called the legislation a "bailout," with conservatives and charter advocates saying the bills would create an unneeded layer of bureaucracy and limit choice.

If $72 million a year is "available to DPS, then why isn't it available for others?" said Sen. Patrick Colbeck, R-Canton, who likened a provision allowing for an emergency loan to the district to "our regular debt ceiling votes out in D.C."

Some Democrats said it would not do enough to improve learning nor close a troubled turnaround entity running the 15 worst Detroit public schools quickly enough. The federal government has been conducting a corruption investigation into the Education Achievement Authority, which Snyder created in 2011.

The House last week approved a $48.7 million stopgap measure to ensure teachers and other employees are paid the rest of this academic year. The Senate seems likely to pass the emergency measure later this week because the House must wait to debate the larger restructuring package until it returns from spring break next month. House Speaker Kevin Cotter called on the Senate to approve the stopgap funding for now.

___

Online:

Senate Bill 710: http://1.usa.gov/1Ml3tEx

___

Follow David Eggert at http://twitter.com/DavidEggert00 . His work can be found at http://bigstory.ap.org/author/david-eggert