Schoolhouse Beat

Proposal would allow Michigan to shut down insolvent school districts

Insolvent school districts in Michigan could be shut down and their students sent to neighboring districts within three weeks under bipartisan legislation proposed by two state lawmakers. The Detroit News says the proposed bill would allow the state to dissolve districts that run out of cash. Under the bill, students would be sent to other districts within their county's Intermediate School District, but the dissolved district's debt would remain with local taxpayers. The insolvent district would keep its taxing authority until the debt is paid.

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