DPS EMERGENCY FINANCIAL MANAGER ISSUES ORDERS TO CONTROL SPENDING

Detroit, MI – Robert C. Bobb, Emergency Financial Manager, Detroit Public Schools, today issued a series of orders to control spending of the district.

The orders, which are posted on the DPS web site, http://www.detroit.k12.mi.us/admin/finance/manager/ , cover:

1. Emergency Financial Manager Control over all Financial Matters
2. Nonrenewal Process for Administrators
3. Legal Services
4. Hiring Freeze

Bobb said that he will be ensuring that future decisions will be announced through such orders, to add clarity and specificity, and to allow for the items to be communicated consistently and be made public through placement on the web site.

“I am issuing a series of orders under my control as Emergency Financial Manager to reign in uncontrolled spending and to obtain a deeper assessment of current financial conditions in the district,” Bobb stated.

Today’s orders include a notice of nonrenewal for 786 DPS administrators, including central staff non-union administrators whose six month contracts end on June 30, 2009; and all principals, assistant principals, central staff administrators and curriculum leaders whose contracts terminate June 30, 2009. All administrators will receive a Notice of Consideration of Nonrenewal based on Economic Necessity, while the district will inform 92 or more of those employees that the consideration of their nonrenewal is based on additional reasons, such as failure to hold a valid teaching certificate or meet a continuing education requirement, or because of restructuring of schools due to AYP status.

Administrators are entitled to request a meeting before Notices of Nonrenewal are issued. Bobb stated that he will conduct all meetings for those administrators whose sole reason for consideration of nonrenewal is that of economic necessity and/or reorganization within the school district. The Board of Education will conduct, and the Emergency Financial Manager will attend, all meetings for administrators whose consideration of nonrenewal is based any on the other reasons: 1) school reconstitution and AYP status, 2) lack of or failure to provide evidence of meeting the continuing education requirements set forth in the Michigan School Code, MCL 380.1246, or 3) administrators required to hold a valid teaching certificate in their administrative position if the teaching certificates are expired or will expire as of June 30, 2009.

The hiring freeze prescribes a process through which the Department of Human Resources can react to emergency hiring needs impacting student achievement. The order on legal services requires that all attorney services utilized throughout the district are first vetted through the Office of General Counsel and approved by the Emergency Financial Manager.

“This is the first step in getting a better control of our finances and to ensuring, as we move forward to support the Board’s and this community’s vision of a 21st century education for our children, that the financial, facilities, infrastructure and management resources are available to achieve those goals,” Bobb said. “We need to continue with an approach that is both urgent and with laser-like.”

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