DPS Czar Outlines Plans

The Detroit Public Schools emergency financial manager Robert Bobb last week announced a reorganization plan that includes closing 29 schools and restructuring 40 others to help cut a $305 million deficit and boost academic achievement.

Another proposed measure is changing administrators’ contract terms.

The plan was announced ahead of a visit from U.S. Secretary of Education Arne Duncan last week. He called DPS “a national disgrace” and said he supports a mayoral takeover of the district. Arne previously served as chief of the Chicago Public Schools, control of which was handed over to Chicago from the state.

Moody’s Investors Service earlier this year downgraded to Ba2 from Baa3 the underlying rating on $7.9 million of outstanding building and site improvement bonds issued in 1996. The downgrade to below investment grade followed Michigan’s declaration that DPS was in a state of fiscal emergency and Bobb was appointed to take over its finances.

For reprint and licensing requests for this article, click here.
MORE FROM BOND BUYER