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    Tag: EM

    $18.7M of DPS Emergency Manager Red Ink


    By Corinthian Scales, Section News
    Posted on Fri Nov 08, 2013 at 11:54:00 AM EST
    Tags: Bismarckian politics, DPS, Roy Roberts, Did it for the children, EM, Andy Dillon, State Treasury, Lansing knew, Slick Rick, Detoilet, Bailout City (all tags)

    This is the problem with every aspect of the public sector - those in it - they all try to grow it.

    The cash-strapped Detroit Public Schools racked up an additional $18.7 million in debt from July through September after its plan to boost enrollment failed, and it spent above budgeted amounts on security, transportation and maintenance.
    ....

    The largest school district in the state, DPS had 300,000 students in the mid-1960s. After decades of steep enrollment  drops, demographers told DPS as it prepared its 2013-14 budget in June to expect another enrollment drop of 5,000 students and to budget for 46,000 students.

    Instead, the district announced it would [try to] attract 5,000 new students, for a total of 51,000, and approved a budget of $687 million.

    Financial experts said that was DPS's biggest mistake.

    Conway said he struggled to understand DPS' decision to budget an increase in students and revenues when the city is in decline. "You just added to the pile of debt," he said. "You are building a bigger mountain to climb."

    No, Mr. Conway.  Government has force of confiscation (taxes) at it's disposal so, it, the employed bureaucrat layers of Ineptocracy, then becomes too big to fail through parasitic consent.

    (1 comment) Comments >>

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