$617M DPS rescue package approved in state Senate; many not happy

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State lawmakers pass a $617 million rescue plan to save Detroit Public Schools.

The plan creates two districts, one to carry the debt during an eight-year pay-off plan. The other to educate students - but many Democrats say the plan will eventually drive Detroit schools into bankruptcy..

It was the day the night before at the state Capitol, Democrats who were out in full force, were blasting what the Republicans did for the Detroit Public Schools.

"This deal is not a good deal, it's a piece of crap," said  state Sen. Morris Hood (D-Detroit).

"It wastes $617 million trying to throw money at the problem without making long-term reforms," said Tim Greimel (D-Auburn Hills).

This is not going to avoid bankruptcy, this is simply a stay of execution,"

Senate and House Republicans praised the vote Wednesday night to spend $617 million to buy down the deficit in Detroit, allow the citizens of Detroit to vote for a new school board and spend $150 million to avoid payless paydays.

"They should be happy. they should be proud," said Rep. Tim Kelly (R-Saginaw).

A key backer of the Republican rescue plan argues there is more than enough money to get the job done. But this Democrat complains it's not enough, and parents will vote with their feet.

"Parents who have been hearing about the crisis for six to eight months now are firmly of the mind that they need to remove their child from the district," Sen. Bert Johnson (D-Highland Park). "So there will be a net loss, another population drop."

The state has been running the Detroit schools dating back to former Gov. John Engler and since this plan was adopted without any Democratic input, Hood said it was a
dictatorship.

"You didn't allow us to be in the process," Hood said. "To form the legislation to vote on. Give us input, everybody in the room had input."

Kelly believes the plan will work.

"We have given them a lifeline and a real future, a possibility of a great future for DPS," Kelly said.

FOX 2: "They say your lifeline will end up with the district in bankruptcy eventually."

"That's the pessimism I can't understand and I can't fix," Kelly said.

Gov. Snyder is expected to sign the DPS rescue package.