State releases last school district from financial receivership

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The state officially released the Muskegon Heights school district from receivership, marking the end of surveillance of all school districts and communities in the state.

“Today is a new day for the Muskegon Heights School District and the State of Michigan,” Governor Whitmer said in A declaration posted on Monday. “The efforts of the school district and the community to identify the problems and bring together the resources necessary to solve complex financial problems are to be commended. I am proud to say that we no longer have a school district or community under state watch. ”

Gov. Rick Snyder appointed an emergency manager to lead the Muskegon Heights district in 2012, after the school board asked the state to step in due to financial issues. The neighborhood later fully converted into a charter district, and outsourced operations to a private for-profit management company, which managed the district’s schools until 2014.

After reengineering into a self-governing charter district, schools in Muskegon Heights were able to stabilize declining enrollment and improve their finances. The district has not had an emergency manager since 2016, and no school or district has had an emergency manager since 2018. But the Muskegon Heights district has remained under state oversight through the Transitional Advisory Council for Guardianship.

This spring, the receivership board voted to dissolve it, saying the district’s financial situation had stabilized. Governor Gretchen Whitmer officially ended the receivership with the stroke of a pen on Monday.

“In reviewing the achievements of the Muskegon Heights School District, it has made significant progress under the statutory oversight of the Transitional Receivership Advisory Council (the Council),” the governor wrote in his letter dissolve the board of directors. “In addition, the financial conditions have been corrected in a sustainable manner. “

The state still has a “partnership agreement” through the Michigan Department of Education to provide assistance to the district. And the district will continue to submit monthly financial reports to the state.


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