DETROIT -

The Inkster School District had until 5 p.m. Monday to prove it could get new loans in order to keep operating.

That didn't happen and under new law, the state now has the power to disband the district.

Mingnon Smith is a proud Inkster High graduate who recently moved back to Inkster.

Smith would have like to send her grandchild to her alma mater this school year, but she was already planning to send him somewhere else.

"When we came back to the Inkster area that was one of our concerns, was the Inkster School District area going to still keep the school open," said Smith

The district went into deficit in 2007, by $1.9 million, that deficit increased to $9.3 million in 2010 despite a 76-percent pupil count increase.

In a financial hole so deep, the state superintendent and the state treasurer promised to dissolve Inkster Public Schools if the district didn't meet a five o'clock deadline today, to secure new loans to finance the upcoming school year.

The district is millions of dollars in the red and enrollment remains on the decline.

Smith now wonders how the district hit rock bottom.

"I don't know what happened; it's been so many problems. You know, with everybody paying taxes what's going on, why is this school district closing," she said.

The district’s 2,300 students are going to be moved to neighboring districts in Wayne County.

Some say it is going to destroy the sense of community in Inkster.

"It's really sad because of so many children in this school district and to have them dispersed everywhere to every school around is, I mean why can't we just fix this school district," said Smith