Detroit school district's debt payments set to increase
LANSING, Mich. - Debt payments of the Detroit Public Schools district are set to increase in February to an amount nearly equal to the school district's payroll and benefits.
The Detroit News reports the state's largest school district must begin making monthly $26 million payments to chip away at the $121 million borrowed this school year for cash flow purposes and $139.8 million for operating debts incurred in prior years.
Marios Demetriou, deputy superintendent of finance and operations, says: "We're running out of money in April."
Gov. Rick Snyder outlined proposals for the district last year. He has said the most urgent issue is providing $715 million in state funds over a decade to pay off the district's debt and spin off a new district — a tough sell for legislators.
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Information from: The Detroit News, http://detnews.com/