Further Steps Taken in Detroit Schools Budget Debacle

LANSING, Mich. (AP) -- A financial manager is being appointed by the state to oversee financial matters at Detroit Public Schools.
State superintendent Mike Flanagan said Monday the appointment is not a state takeover of the district. The local school board and superintendent will continue to handle educational matters.
The emergency financial manager will balance the district's budget, pay its bills, manage spending and establish strong and reliable financial systems.
Flanagan says the district failed to submit a revised plan for eliminating a $400 million deficit and that all budget documents submitted by the district have been unsatisfactory.
The Detroit Board of Education has 10 days in which to request a hearing to contest the conclusion that a financial emergency exists.

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