Detroit Schools Shows First Budget Surplus Since 2007

Wednesday, November 23, 2011

After years of ever-growing deficits, Detroit Public Schools broke into the black during the past school year, with a $43 million surplus, the district said.

A 10 percent enrollment drop, federal stimulus money and belt-tightening measures allowed the district to reduce spending by $98 million in 2010-11.

But even as Emergency Manager Roy Roberts announced the district's first surplus since 2007, the Michigan Department of Education warned that the district could slip back into the red this year.

"DPS continues to have a substantial budget deficit and current monthly reports indicate this year's deficit is continuing to grow," department spokeswoman Jan Ellis said Monday.

This year, still in receivership and under state control, DPS slashed its deficit from $327 million to a projected $84 million, primarily through a $244.9 million bond sale completed last month.

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