DPS may reject bailout, conference to be held Monday

DETROIT (WJBK) - Detroit Public School board members say they may turn down legislation offering a $150 million dollar loan from the State of Michigan.

Gov. Rick Snyder recently signed a package of bills approving a rescue plan for DPS. Members are wary of the bills because the loan comes with an interest rate of 18 percent.

Board members will hold a news conference Monday to discuss their plans.

The board might also reject the state's moving of DPS assets to a separate district -- a plan supported by Snyder and DPS emergency manager Steven Rhodes.

Members fear the transfer of assets won't provide solutions, but will only continue the district's struggle with debt.