CHICAGO — A Detroit legislator was poised Wednesday to sponsor a package of bills that would allow Michigan to securitize up to $400 million of its tobacco settlement payments to erase the deficits carried by Detroit Public Schools and 41 other state school districts.

The legislative proposal was crafted by Detroit Public Schools’ emergency financial manager Robert Bobb. Participating school districts would be required to implement major academic and fiscal reforms in return for the funds.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.