In Michigan
11:14 am
Wed August 5, 2009

DPS project $2.1M savings from health audit

DETROIT – The emergency financial manager for Detroit Public Schools says the removal of 411 ineligible dependents from its health insurance coverage will save the district about $2.1 million a year.

Robert Bobb told reporters Wednesday the audit begins a broader review of dependent health insurance coverage in the state's largest school district.

He says the names surfaced during a two-week amnesty for employees to report those no longer entitled to coverage.

Bobb and district police Chief Roderick Grimes say an audit of the public safety department found widespread waste, including a mothballed fleet of 11 motorcycles and 160 Blackberry phones.

The audits are among several tracking the flow of money in a district facing a budget deficit of about $259 million.