State to review finances of Highland Park schools

LANSING (AP) -- Michigan officials are ordering a preliminary review of the finances of the school district for the Detroit enclave of Highland Park, the start of a process that potentially could lead to a state takeover. Michigan Superintendent of Public Instruction Mike Flanagan alerted the district to the review in a letter this week. The letter says the review is a preliminary step and doesn't automatically mean an emergency manager will be appointed to run the district. The district had a projected $19.9 million deficit at the end of June, a situation the letter calls "critical and alarming." A message was recently left seeking comment from School District of the City of Highland Park officials. In the past four years, the district has seen its enrollment drop more than 50 percent to 1,258 students. Emergency managers can strip local officials of their power and toss out union contracts under revised powers granted through a state law approved earlier this year. Emergency managers currently are assigned to Detroit schools and the cities of Benton Harbor, Ecorse and Pontiac. Schools and cities have chances to avoid the appointment of an emergency manager between the call for a preliminary review and the possible appointment of a manager by Gov. Rick Snyder. The preliminary review for Highland Park schools is expected to be complete by the end of August. State officials determine how to proceed after that review is wrapped up. Steps could include the adoption of a consent plan aimed at fixing school finances or putting a review team into the district for further evaluation. Published: Mon, Aug 1, 2011