Michigan Gov. Rick Snyder last week determined that a financial emergency exists in Muskegon Heights Schools, a district in a Detroit suburb that has been plagued by years of deficits and falling enrollment.
On Monday, the school board — which asked the state to review its finances last December — waived its right to appeal the decision. Snyder is expected to appoint an emergency manager to take the district over as soon as Thursday.
The district’s general fund deficit totaled $8.5 million in 2011, nearly half of general fund revenues, according to a state review team.
The school has a $7.9 million note issue outstanding that is due in August. The state Treasury Department was required to intercept 12% of the district’s state aid payments beginning in February to ensure timely repayments of the note.
