The Detroit school system has reduced its deficit from $327 million to a projected $84 million and has generated its first operating surplus since 2007, emergency manager Roy Roberts has announced.
"Careful financial planning and sacrifices across the board while maintaining a focus on teaching and learning have paid dividends," Roberts wrote in a letter sent to all families with children in the school system. "A number of key financial initiatives that the district has initiated to enhance financial and budget operations are beginning to take effect."
In 2010-11, the district reduced its negative fund balance by more than $43 million and had an operating surplus for the first time in four years. A $244 million bond sale and spending cuts have enabled the district to wipe out much of its $327 million deficit.