Michigan approves Pontiac district's deficit-reduction plan

From The Detroit News: Michigan education officials have approved the Pontiac School District's deficit elimination plan and are releasing $2.79 million in state aid withheld in April and May. The Michigan Department of Education also has decided not to recommend a state-installed review team to assess the district's finances — for now. State school Superintendent Mike Flanagan says recent actions — including a 6 percent pay cut by teachers, the closing of two schools and the layoff of 30 additional teachers June 30 — compelled him to stop short of recommending the state-level review, which can lead to an emergency manager.

Earlier...

APRIL 2012...from The Detroit News: The Pontiac (Mich.) school district faces the loss of state funding as soon as Friday because it is not meeting the terms of a state-approved plan to eliminate $24.5 million in debt, the Michigan Department of Education says. When the state gave conditional approval last month to the district's deficit-elimination plan, it warned that Pontiac could lose funding unless it followed through on pledges to cut costs. In the past month, the district announced plans to close Jefferson-Whittier Elementary School and laid off 95 employees, including more than 40 teachers. MARCH 2012...from The Detroit Free Press: Michigan Superintendent of Public Instruction Mike Flanagan has approved a plan for the Pontiac School District to reduce a $24.5-million deficit. But the approval came with contingencies that could revoke the approval. Flanagan says if the district doesn't pursue enough layoffs or wage concessions to meet budget reductions, the state would have to withhold its April state aid payment. The Pontiac district already has issued a number of layoffs, and the school board has voted to close Jefferson-Whittier Elementary and move the International Technology Academy to Pontiac Middle School.