Detroit's public-school system, beset by massive deficits and widespread corruption, is on the brink of following local icons GM and Chrysler into bankruptcy court.Great moments in public education! You'll want to read the whole article. Are Detroit Public Schools more corrupt than Enron ever dreamed of being?
A decision on whether to file for protection under federal bankruptcy laws will be made by the end of summer, according to Robert Bobb, Detroit Public Schools' emergency financial manager. Such a filing would be unprecedented in the U.S. Although a few major urban school districts have come close, none has gone through with a bankruptcy, according to legal and education experts.
But in Detroit -- where U.S. Education Secretary Arne Duncan dubbed the school system a "national disgrace" this spring -- lawmakers and bankruptcy experts see few alternatives, given the deep financial challenges confronting the district and the state.
"Am I optimistic that they can avoid it...? I am not," says Ray Graves, a retired bankruptcy judge who has been advising Mr. Bobb in recent weeks.
Wednesday, July 22, 2009
Detroit Public Schools on the Verge of Bankruptcy
The Wall Street Journal reports:
