The newest chapter in Detroit Public Schools could soon be similar to bankruptcy.
The district’s emergency financial manager, Robert Bobb, is considering an “out of the box” idea to deal with the district’s nearly $330 million budget deficit.
“It would actually create two” Detroit Public School districts, Bobb told WWJ’s City Beat Reporter Vickie Thomas exclusively. “One would eliminate the deficit; it would be like a DPS into this one – DPS Corporation One or old corporation. And, then DPS Two to be a NEWCO – a new corporation – that would basically start over,” Bobb said.
Bobb went on to say that this is something that’s never been done before in the public sector.
Bobb said the move is not bankruptcy, but would have similar effects because the new corporation would begin without being saddled with a deficit.
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