State funds partially withheld from Pontiac (Mich.) district

The Pontiac (Mich.) School District’s financial peril has worsened after a state board voted to withhold nearly $660,000 in state aid later this month because the district has failed to pay $4.2 million in employee pension contributions. The Detroit News reports that the Michigan Public Employees Retirement System board had wanted to withhold Pontiac’s full $1.48 million monthly aid, but state officials advanced the district about $818,000 of the payment earlier this week so it could make payroll. But the retirement system board’s action raises questions about whether the school district can meet its next payroll later this month.