Michigan: No State Takeover of East Detroit Schools

CHICAGO — After a preliminary review, Michigan declared that no financial emergency exists in the East Detroit school district.

The state's Emergency Financial Assistance Loan Board made the announcement after a Monday afternoon meeting.

The board found that district officials are making sufficient progress to stabilize its finances and does not require the appointment of an emergency manager or a state takeover.

East Detroit Schools is located in Macomb County, and covers the cities of Eastpointe and Warren.

It's relatively rare for the state treasurer to decide that a local government it has investigated for fiscal distress can continue to operate on its own. A preliminary financial review more typically leads to some form of state oversight.

Michigan currently oversees 13 local governments, including the school districts of Detroit, Highland Park, and Muskegon Heights. The Pontiac School District operates under a consent agreement with the state.

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Michigan
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