Governor calls for Pontiac schools financial review

Review could lead to emergency manager

Author: Bisi Onile-Ere, Local 4 Reporter
Published On: Jul 03 2013 11:01:53 PM EDT   Updated On: Jul 04 2013 04:13:01 AM EDT
Pontiac School District
PONTIAC, Mich. -

The Pontiac school district Wednesday moved one step closer to getting an emergency manager to run its finances.

Governor Rick Snyder names a six-member team to review the district's finances.  The district reportedly faces a $38 million budget deficit.

Dan McCarthy of the Pontiac Education Association said he was not surprised by the governor's move.

"We fully expected he would name a review team and now he has," McCarthy said.

The Pontiac school district has been spending more money to service its debt.  Dan McCarthy said the result is a risk of payless paydays and medical coverage cuts for employees.

"We are looking at the prospect of payless paydays before this month is over. We are looking at the prospect of no hospital or medical care for employees of this district next month," McCarthy said.

A court recently ruled against the district for unpaid healthcare premiums, leading to the likelihood that taxpayers in neighboring communities will be forced to pick up the  bill.

The review team will have 60 days to submit a report to the governor. If he declares a financial emergency, Pontiac's school district will choose between an emergency manager, a neutral evaluation, a consent decree with the state, or bankruptcy.