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Michigan Governor Signs $617 Million Detroit Schools Bailout

LANSING (WWJ/AP) - Michigan's governor has signed a $617 million bailout and restructuring plan for Detroit's school district.

Republican Gov. Rick Snyder signed the legislation Tuesday. It comes two years after he shepherded a package of bills through the Legislature to help end the city's bankruptcy.

The financially strained Detroit Public Schools has been managed by the state for seven years. During that time, the district has continued to face plummeting enrollment, deficits and recent teacher sick-outs. The district now has roughly 46,000 students.

WWJ Lansing Bureau Chief Tim Skubick says Snyder signed the legislation in an uncharacteristically private manner.

"The governor's office first thought about going to Detroit to sign the legislation, but perhaps that was a bad move because of all the strong opposition in Detroit, so they rejected that," Skubick reported.

"Secondly. they thought about having a very public news conference in front of the capitol press corps, with the two Republican leaders who sponsored the legislation, but that option was also rejected," Skubick said. "The governor opting instead to sign this legislation in private, in his office, without fanfare; no hats, no horns."

Under the laws, the district will be split on July 1 and control of the new district will be returned to a school board to be elected in November. A commission of state appointees will oversee that district's finances, similar to how it now reviews the city's budgeting.

TM and © Copyright 2016 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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