DETROIT -- The Detroit Public School Board averted a possible shutdown by approving a new budget, but fate of several hundreds teachers remains unclear.

The two-year budget included nearly $522 million in spending cuts and calls for massive teacher layoffs.

"They (teachers) are now looking at other states and other cities for employment, " said Detroit Federation Of Teachers President Virginia Cantrell. "Even though we have had a reduction in students, we're going to have a teacher shortage."

According to Cantrell, as many as 800 teachers and 600 staff members could lose their jobs.

The proposed budget, approved by a 9-2 vote, also calls for closing schools, but many of the specifics must still be worked out by district officials.

Parents Local 4 News talked with Tuesday were unhappy with the cuts and the uncertainty.

"They need all the teachers they can get in the school," said parent Yvonne Shelman. "I think it's terrible and it's been like this for a few years now."

School Superintendent Connie Calloway agreed the cuts are drastic, but insisted they are needed to help offset a drastic drop in enrollment.

DPS lost 11,400 students last year, which translated into $85 million state aid loss.

Over the weekend, the state Senate passed a resolution calling for an investigation into the district's finances.

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 district 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.

Several parents agreed, but many think the problems have gotten worse since Calloway took over. "My daughter's been in Detroit Public Schools since about fourth grade," said Shelman. " We've seen the ups and the downs. This is the worst I've seen it."