Michigan’s top treasury official is warning lawmakers to not let the state’s largest district go bankrupt.
The state House is beginning hearings on bills meant to keep Detroit Public Schools from going broke in April. The legislation would restructure the district and provide a 700 million dollar bailout over ten years.
State Treasurer Nick Khouri says that’s a lot of money – but it’s far less than what bankruptcy would cost taxpayers.
“The sooner we act, the better. The deficits get bigger every day. The solutions get harder every day that we address this problem.”
State House Speaker Kevin Cotter says bankruptcy should remain an option for addressing the district’s financial crisis.