The Michigan state treasurer is warning lawmakers that Detroit's public schools could be insolvent by spring if the Legislature doesn't cover millions in debt.
A House subcommittee held a hearing Tuesday, the first since Gov. Rick Snyder last week said lawmakers should set aside $70 a million a year for a decade.
Treasurer Nick Khouri says Detroit schools face many challenges, even without debt. He says the cash-poor district hasn't been making timely payments to suppliers. Nearly $160 million is owed to the state pension fund.
Rep. Tim Kelly, a Saginaw-area Republican, says he was "flabbergasted" to learn about the pension shortfall. The Detroit News quotes Kelly as saying he's interested in overhauling the pension fund for all schools instead of just taking care of Detroit.
State treasurer tells lawmakers: Detroit schools need help
