Tag Archives: Finance
DPS Completes Restructure of 2005 Debt and Saves District over $8 million in Interest Costs
Detroit Public Schools Emergency Manager Roy S. Roberts has announced that the District took advantage of the favorable municipal market interest rate conditions and completed a restructure of its 2005 long-term debt. The District’s successful completion of a $141 million financing will eliminate the requirement of the insurer of the 2005 bonds to accelerate repayment on the 2005 bonds, which would have cost the District an additional $22 million per year over four years, beginning in June 2012. Given the extremely low municipal bond rates, the District was able to both eliminate the need to accelerate the 2005 debt, as well as reduce the overall interest cost by over $8 million, resulting in a savings to the District of over $1 million … Continue reading
Detroit Public Schools, DFT, AFT locals reach a settlement
The parties in the matter of Detroit Federation of Teachers, American Federation of Teachers Local 231, Detroit Association of Educational Office Employees, American Federation of Teachers Local 4168, Detroit Federation of Paraprofessionals, American Federation of Teachers, Local 2350, Phyllis Light, Zakiya A. Jackson and Dorothea W. Ramsey, v Roy Roberts, and Andy Dillon appeared in US District Court Eastern Division before Judge George Caram Steeh today (Wednesday, February 29, 2011) at 10:30 a.m. for approval of the settlement of the pending lawsuit. The Plaintiffs, who are employees and union representatives of DPS employees, sued Emergency Manager Roy Roberts and State Treasurer Andy Dillon asserting various constitutional claims arising out of Emergency Manager Orders which amongst other things, reduced the compensation … Continue reading
Detroit Public Schools generates annual operating surplus, reduces legacy deficit by $43 million, focuses resources on high standards in a rigorous curriculum
Along with $200 million financing, DPS deficit is projected to be $83.9 million, although challenges remain to maintain balanced budget with enrollment and State Aid reductions, continue deficit elimination plan and move schools to EAS Detroit Public Schools generated its first annual operating surplus since 2007 and reduced its negative fund balance by over $43 million (13 %) for the 2010-11 fiscal year. DPS accelerated the elimination of its $327 million legacy deficit, reduced total expenditures by over 8% and reduced debt service cost by almost $6 million. The announcement was made today by DPS Emergency Manager Roy S. Roberts and the results are presented in the district’s FY 2010-2011 Consolidated Annual Financial Report (CAFR) which was submitted as required to the Michigan Department of Education … Continue reading
DPS enrolls 66,007 students—73,306 including charter and Pre-K, exceeds budget projection and turns back five-year enrollment trend
Positive enrollment details follow successful sale of $244.9 million financing, ‘A+’ credit rating and new Special Ed compliance report Detroit Public Schools announced today that the district exceeded its budgeted enrollment target by 137 students, with enrollment as of October 20, 2011 at 66,007. The enrollment number additionally represents the smallest real-number and percentage decline in overall district enrollment since 2006. The enrollments is based on full-time students (FTE’s) at the end of the State of Michigan ten-day Counting Period which includes the October 5 Count Day and a ten-day window in which to account for students absent that day. The student count will likely grow further during the remaining 20-day period allowed for counting students who were absent but … Continue reading
DPS completes $244.9 million financing after receiving “A+” credit rating, completing a key element of district’s financial turnaround plan
Detroit Public Schools Emergency Manager Roy S. Roberts today announced the successful completion of a $244.9 million financing which results in effectively eliminating approximately $200 million of the school district’s legacy deficit. The district took advantage of the most favorable municipal market interest rate conditions in over three decades. By refinancing the short term notes into long term obligations the District now has the ability to retain a larger amount of each month’s state aid revenues to strengthen its cash flow. DPS will be addressing the financial and budgetary measures necessary to stabilize and enhance its financial condition to eliminate the remaining deficit.
Detroit Public Schools budget cuts costs, positions while driving more resources into classrooms and reducing class size at most grade levels
89 percent of resources directed to schools and school-related programming Detroit Public Schools’ proposed 2011-2012 budget removes $231 million in expenses, reduces staffing by 796 positions and cuts purchased/contracted services by $41.7 million while expanding pre-Kindergarten programs and directing 89 percent of resources to school and related programming and operating costs. The budget, which drives more resources directly to classrooms to support the district’s rigorous five-year academic plan, also reduces class sizes at most grade levels. Emergency Manager Roy Roberts said, “We must create and maintain an organization that totally accepts its responsibility for making this the top rate school district that it can be. That begins with this budget. The budget that is being submitted is fiscally sound and balanced.” … Continue reading
