In Michigan
6:46 pm
Thu January 12, 2012

Gov.: Highland Park schools in financial crisis

HIGHLAND PARK, MI –

Michigan Gov. Rick Snyder has informed Highland Park schools officials that a financial emergency exists in the district, paving the way for the state to appoint an emergency manager.

The Republican governor announced the decision Thursday, acting on recommendations of a 10-member review team. Snyder said in a statement that the district in the small city partially surrounded by Detroit "faces monumental financial challenges."

Officials also say the district was given a $188,000 advance on scheduled state aide to cover this week's payroll.

The school district faces an $11.3 million budget deficit. It has had an operating deficit in five of the past six fiscal years.

Enrollment has dropped from 3,179 students to 969 during the past five years.

A hearing with the district's school board will be held Tuesday.