A state board has turned over the fate of the Pontiac schools to Gov. Rick Snyder after a review of the district’s finances Thursday.
Now it is up to Snyder to appoint an official review team to determine if the district is in an emergency situation and needs further intervention.
Pontiac schools had a $37.7 million deficit before the school year started last year, narrowly avoided a payless payday, did not pay teacher health insurance premiums as required, and just this month missed a $1.4 million debt payment.
“The Local Emergency Financial Assistance Loan Board did find “probable financial stress” exists,” said state Treasury spokesman Terry Stanton.
The determination came after the board reviewed negative findings submitted by state school Superintendent Michael Flanagan from a preliminary review of district finances done recently by the Michigan Department of Education.
If Snyder’s team decides the district is in an emergency, the Pontiac Board of Education will be required to choose between having an emergency manager operate the district, declaring bankruptcy with state monitoring, or reaching a consent agreement with unions within a specific period of time. Continue To Oakland Press…