Michigan officials on Wednesday declared the Highland Park School District in a financial emergency, a step that could lead to a state takeover of the school system.
The school district of Highland Park, a small, low-income city entirely surrounded by the city of Detroit, would become the fifth public entity in Michigan to be run by a state-appointed manager.
A 10-member review team appointed by Governor Rick Snyder in November concluded that no satisfactory plan exists to resolve the district's fiscal problems and recommended the governor appoint an emergency manager to run the district, which serves an estimated 969 students.
Snyder has 10 days to review the report.
The Detroit Public Schools and the cities of Benton Harbor, Ecorse, Flint and Pontiac are already being run by state-appointed managers. Detroit, Michigan's largest city, also faces a possible state takeover.
Snyder last week named a review team to do an assessment of Detroit, to determine if it, too, has a financial emergency that warrants the appointment of a manager.