Michigan Says 55 School Districts Have Deficits

By DAVID EGGERT, Associated Press

LANSING (AP) - Michigan has a record 55 school districts with deficits, with 10 expecting to be in the black when the fiscal year ends later this month.

State Superintendent Mike Flanagan made the projections Thursday in an update to lawmakers. They're starting to discuss legislation allowing for schools that run out of money to be dissolved by state officials and the students sent to another district.

A Saginaw-area school district recently closed for nearly two weeks because of financial problems.

The state says 23 districts began the fiscal year in deficit but project to have reduced the deficit. Sixteen expect to have a bigger deficit.
Six began the year with a positive fund balance but project to end the year in deficit.

Michigan has about 800 school districts including charters.

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