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DPS Board Rejects Budget Proposal

POSTED: Friday, June 27, 2008
UPDATED: 11:16 pm EDT June 27, 2008

The Detroit Public School Board rejected a budget plan once again as the district faces a $400 million deficit.

The board met Friday evening to address the shortfall and possibly laying off teachers and staff members.

During the meeting, board members demanded a minimum of a 48-hour work session to discuss the budget and called another special meeting for Monday night.

The deadline to approve a budget is Monday at midnight.

The plans on the table include laying off more than 800 teachers and as many as 600 staff members.

Detroit Public Schools Superintendent Connie Calloway told the board the cuts are necessary thanks to a drastic decline in enrollment.

According to a recent report by a panel of outside school finance experts, the school system has hidden deficits in its operating budget for at least the past four years.

Reviewers from the Council of Great City Schools visited the school in March and April and found conflicting information on what was being reported to the state.

According to the report obtained by the Free Press, Detroit school officials have been borrowing money to hide the deficit. The report said school officials have a lack of basic accounting procedures and have no long-term plans for finances or facilities.

"There is going to be shortfall. You need to reduce staff to keep up with the reduction of students," Calloway said.

Calloway said she inherited a big portion of the problems and also said she feels there is a communication breakdown that needs to be fixed.

Steve Wasko, spokesman for the school district, told the Free Press the report will provide information that officials will review and refute, if necessary.

"These reports will be vital tools as we work to put processes and systems in place where they were either lacking or nonexistent," he said.

WATCH VIDEO: DPS Under Fire For Recent Report

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