Introduced by Sen. Goeff Hansen (R) on January 14, 2016 To revise the state school code to accommodate Gov. Rick Snyder’s proposal to divide the Detroit school district into two entities. One of these would have the purely administrative function of servicing the bond debt accumulated by the district. The other would be governed by an elected school board and actually manage the schools (including academically failed schools currently under a form of state receivership). The centerpiece of the proposal is financial arrangements to relieve the district of debt incurred to cover regular operations in recent years, and allowing it to redirect property tax revenue that currently supports school operations to instead paying off its bond debt. The state would cover the operations funding shortfall, potentially out of money earmarked to the school aid fund, which is the source of state aid to local district and charter schools. Official Text and Analysis.
Referred to the Senate Government Operations Committee on January 14, 2016
Amendment offered by Sen. Hoon-Yung Hopgood (D) on March 22, 2016 To move up to July 1, 2016 the date on which the bill would dissolve a state "education achievement authority" that has operated several academically-failed Detroit schools under state receivership.
Amendment offered by Sen. Hoon-Yung Hopgood (D) on March 22, 2016 To prohibit the state for at least three years from closing any of the academically-failed Detroit schools that have been under state receivership, and also prohibit it from intervening in their management during that time.
Amendment offered by Sen. Hoon-Yung Hopgood (D) on March 22, 2016 To turn over ownership and control of the land and buildings of academically-failed Detroit schools that have been under state receivership to the reconstituted Detroit school district.
Amendment offered by Sen. Hoon-Yung Hopgood (D) on March 22, 2016 To prohibit closing an academically-failed Detroit school for at least five years, or intervening in its management, unless this is approved by the proposed Detroit Education Commission to be appointed by the mayor.
Passed 21 to 16 in the Senate on March 22, 2016. See Who Voted "Yes" and Who Voted "No". To end the state's emergency management of the insolvent Detroit school district, and give an elected school board control of the district's schools, including the academically-failed ones currently under a form of state receivership. The bill would give a new "education commission" appointed by the Detroit mayor the authority to block new charter schools from opening in the city, among other powers. It would also effectively forgive the debt incurred to cover overspending in successive district budgets by transferring this and millage-supported bond debt to a new administrative entity. Senate Bill 822 authorizes a $300 million loan to the district, considered a "down payment" on an expected $515 million bailout and another $202 million for "transition costs.
Received in the House on March 23, 2016
Referred to the House Appropriations Committee on March 23, 2016