SR-209, As Adopted by Senate, June 28, 2008

            Senator Bishop offered the following resolution:

            Senate Resolution No. 209.

            A resolution to request the Superintendent of Public Instruction to conduct a review of the financial conditions of the Detroit Public Schools pursuant to the provisions of 1990 PA 72 and to report the findings to the legislature by August 27, 2008.

            Whereas, The Local Government Fiscal Responsibility Act, 1990 PA 72, provides for the review, management, and planning of local units of government, including public school districts, that are facing financial emergency situations. This act sets forth specific steps to be taken to identify conditions that require emergency attention and outlines the process to be followed to ameliorate the situation; and

            Whereas, Section 33 of this act, being MCL §141.1233, provides that either house of the legislature may request the state's Superintendent of Public Instruction to review the financial conditions of a school district. This sets in motion a series of actions ultimately aimed at rectifying problems that may subsequently be identified; and

            Whereas, It has become clear that the state's largest school district, the Detroit Public Schools, is facing grave financial conditions. Reports indicate the possibility of the accumulation of a deficit over the past several years that is in the range of hundreds of millions of dollars. The severity of this financial crisis imperils the district's ability to educate students; and

            Whereas, The legislature is deeply concerned about the welfare of the children of Detroit. It is critical to provide the necessary fiscal oversight that is currently lacking in the district. The legislature cannot stand by and let mismanagement fail the children in the state's largest school district. It is imperative that we ensure that state aid money from the taxpayers of Michigan is spent on the education of students and is not being diverted to areas where it may be wasted or spent inappropriately and therefore not put to its best use; now, therefore, be it

            Resolved by the Senate, That, pursuant to the provisions of section 33 of 1990 PA 72, the Local Government Fiscal Responsibility Act, MCL § 141.1233, we request the Superintendent of Public Instruction to conduct a review of the financial conditions of the Detroit Public Schools. We also urge the Superintendent to forward to the legislature any and all relevant documentation that is currently on hand and any and all documentation that becomes available as part of the review process and to report the findings to the legislature by August 27, 2008; and be it further

            Resolved, That copies of this resolution be transmitted to the Superintendent of Public Instruction.