Friday, May 15, 2009

Michigan: Detroit to Close 29 Schools

(Detroit, Michigan) Robert Bobb, the emergency financial manager for Detroit Public Schools, was appointed by Gov. Jennifer Granholm in January to take over complete control of the school system purse strings.

Burdened with a deficit over $300 million, Bobb announced this week that 29 schools will be closed next year with an anticipated savings of $14 million annually.

If $14 million can be saved annually from here on out, it will take over 21 years to whittle the deficit down to zero, assuming that nothing is added to the deficit.

For an emergency financial manager to launch a 21-year solution to the financial crisis is arguably less than timely. Mr. Bobb must be considering other avenues to reduce costs since a 21-year plan fits in the category of long-term strategic planning. As an emergency response, it surely isn't.

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