State-run EAA owes DPS $15 million in unpaid rent
DETROIT (WJBK) - Detroit Public Schools has been cash-strapped for years. Now, the city is owed near $15 million by the state-run Education Achievement Authority. When they'll see the money is unknown.
The Education Achievement Authority (EAA) owes the Detroit Public Schools nearly $14.8 million in unpaid rent. And it seems that the EAA admits to owing to rent but says, in a statement to Fox 2, that the debt is owed by the "old co."
That's a reference under new legislation that essentially says the state has to deal with old debts, so the "new co" called the Detroit Public Schools Community District, can educate students.
The EAA was created by the Governor to fix 15 of Detriot's failing schools. School buildings owned by DPS were leased to the EAA.
The EAA did not offer a timetable on when the money would be paid back.
In a statement, DPS acknowledges that it is working with the EAA to make sure those payments are made. According to DPS Community District, that money will go to provide educational services to students.