A financial emergency exists in Muskegon Heights Schools, said an eight-member, state-appointed team that has reviewed the district’s finances.
The team on Monday sent a report to Michigan Gov. Rick Snyder, saying the district has a financial emergency with no satisfactory plan to resolve it.
Snyder now has 10 days to determine whether he agrees with the finding. If the determination is upheld, he will decide whether to appoint an emergency manager to take over the district or authorize a consent agreement with local officials.
The team said its findings were based on several factors, including a 102% increase in the district’s general fund between 2010 and 2011.
The school district has not had a positive year-end fund balance in its general fund since 2006, and its enrollment has fallen by 34% from 2006 to 2012, according to the state.